HBA-GUM H.B. 2088 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2088 By: Goodman Ways & Means 4/16/1999 Introduced BACKGROUND AND PURPOSE Current law treats Internet access and certain other Internet services as taxable information services or as taxable data processing. Some critics suggest that Texas' tax law may be hostile to growth of the Internet and related businesses. H.B.2088 repeals Sections 151.0035, which defines "data processing service," and 151.0038, which defines "information service," Tax Code. This bill redefines "taxable services" and "magazine"to make conforming changes, and "telecommunications services" to provide that the term does not include an Internet access service . In addition, this bill defines "Internet," and "Internet access service." RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter A, Chapter 151, Tax Code, by adding Sections 151.00393 and 151.00394, as follows: Sec. 151.00393. "INTERNET." Defines "internet." Sec. 151.00394. "INTERNET ACCESS SERVICE." Defines "Internet access service." SECTION 2. Amends Section 151.0101(a), Tax Code, to make conforming changes with repect to SECTION 5 of this Act.. SECTION 3. Amends Section 151.0103, Tax Code, to exclude Internet access service from the definition of "telecommunications services." SECTION 4. Amends Section 151.320(b), Tax Code, to make a conforming change with respect to SECTION 5 of this Act. SECTION 5. Repealer: Sections 151.0035 ("Data Processing Service") and 151.0038 ("Information Service"), Tax Code. SECTION 6. Effective date: October 1, 1999. Makes application of this Act prospective. SECTION 7. Emergency clause.