HBA-RBT C.S.H.B. 2406 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2406
By: Cuellar
Ways & Means
4/6/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Export items are exempt from the sales and use tax.  Currently, many
brokers are executing export documentation forms and delivering them to the
customers prior to export.  The form is not supposed to be executed until
after visual verification of export.  Customers can take these invalid
certificates to the store and redeem their tax even though they have never
left the country.  Stores are allowed to refund the tax if the customer has
a valid certificate.  

C.S.H.B. 2406 implements distinctions between retailers located in counties
that do or do not border the United Mexican States and the different time
periods that must elapse before the retailers may refund the tax paid. 

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 Sections 151.307, Tax Code, by amending Subsection (d),
and adding Subsections (e) and (f), to set forth the circumstances under
which a retailer who receives documentation is prohibited from refunding
tax paid under this chapter, providing a distinction between retailers
located in counties bordering the United Mexican States and those who do
not. Provides that a retailer who makes a refund before the prescribed
time, makes an undocumented refund, or makes a refund that is improperly
documented is liable for the amount of the tax refunded with interest.
Redesignates Subsection (d) to (f).  Makes conforming changes. 

SECTION 2.  Effective date: September 1, 1999.
            Makes application of this Act prospective to exemptions to the
sales and use  
                       tax imposed under Chapter 151, Tax Code, claimed on
or after January 1, 2000. 

SECTION 3.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute deletes proposed SECTIONS 1, 2, 3, 4, 6, and 7, of the
original bill, which proposed regulations to customs brokers regarding
verification of payment of taxes on tangible personal property exported
beyond the territorial limits of the United States of America.  The
substitute also differs from the original by deleting the proposed
amendments to Sections 151.307(b) and (c), Tax Code.