HBA-JRA H.B. 2280 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2280 By: Dutton Ways & Means 4/7/1999 Introduced BACKGROUND AND PURPOSE The suspension of sales tax may encourage consumers to make purchases that they might not otherwise make. H.B. 2280 exempts from limited sales, use, and excise taxes, the purchase of children's clothing, footwear, and school supplies that cost less than $100 during 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 151.325, as follows: Sec. 151.325. CERTAIN PRICED CHILDREN'S CLOTHING OR FOOTWEAR; FABRICS. (a) Exempts the sale of an article of children's or youth's clothing or footwear intended to be worn on or about the human body from limited sales, use, and excise taxes if the article costs less than $100 and is purchased during August. (b) Provides that Subsection (a) does not apply to accessories or to an article of clothing or footwear primarily designed for athletic activity when used for the athletic activity or protective use for which it is designed. (c) Exempts the sale of tangible personal property intended to be a component part of an article of clothing or footwear for the human body from limited sales, use, and excise taxes if the property costs less than $100, is purchased by a person who is not in the business of fabricating or manufacturing clothing or footwear for sale, and is purchased during August. (d) Provides that an exemption certificate in which the purchaser certifies that the article is to be worn by a child or youth is sufficient to establish that fact. SECTION 2. Amends Subchapter H, Chapter 151, Tax Code, by adding Section 151.326, as follows: Sec. 151.326. SCHOOL SUPPLIES PRIOR TO START OF SCHOOL. (a) Exempts a tangible item from limited sales, use, and excise taxes if the item is required for use by a student in a class in a public or private elementary or secondary school, is on a list issued before the beginning of the school year by the student's teacher, is purchased during August, and costs less than $100. (b) Provides that the purchaser must give the seller an exemption certificate that certifies in writing that the tangible item qualifies as exempt, except as provided by Subsection (c). (c) Provides that an exemption certificate is not required if the seller maintains a separate section or display that contains only items that qualify as exempt. SECTION 3. Effective date: 90 days after adjournment. Makes application of this Act prospective. SECTION 4. Emergency clause.