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.