HBA-SEB H.B. 209 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 209
By: Cuellar
Ways & Means
2/9/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, a sales tax is imposed on school supplies.  H.B. 209 exempts
school supplies from the tax if they are required by a student in a public
or private elementary or secondary school, if they appear on a list issued
by the teacher before the school year begins, and if they are purchased in
the month of August.   

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 H, Chapter 151, Tax Code, by adding Section
151.326, as follows: 

Sec. 151.326.  SCHOOL SUPPLIES PRIOR TO START OF SCHOOL.  Establishes that
certain school supplies are exempted from the taxes imposed by this chapter
(Limited Sales, Excise, and Use Tax).  Sets forth the guidelines for the
tax exemptions.  Provides that the purchaser give the seller an exemption
certificate verifying that the tangible item qualifies as exempt from
taxes, unless the seller of the item maintains a separate section or
display that contains only exempt items. 

SECTION 2.  Provides that this Act takes effect on the first day of the
first calendar quarter beginning on or after 90 days after adjournment.
Makes application of this Act prospective.   

SECTION 3.  Emergency clause.
            Effective date:  upon passage.