HBA-SEB H.B. 253 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 253
By: Hilderbran
Ways and Means
3/1/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, various health care supplies are exempt from sales tax.  H.B.
253 includes diapers, overthe-counter medications, and medical appliances
and devices in the tax exemption.  The bill also exempts clothing and
footwear purchased between July 24 and August 8  from the sales tax and
makes access to the Internet tax-free. 

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 Section 151.313(a), Tax Code, by deleting the provision
that exempts only drugs or medicine specifically prescribed or dispensed by
a licensed practitioner of the healing arts from the taxes imposed by this
chapter (Limited Sales, Excise, and Use Tax).  Exempts diapers, rather than
insulin, from the taxes.  Includes medical appliances along with
therapeutic appliances, devices, and related supplies in the tax
exemptions.  Excludes contraceptives from the tax exemptions when a
licensed practitioner of the healing arts does not prescribe or dispense
them. Makes conforming and nonsubstantive changes. 

SECTION 2.  Amends Section 151.323, Tax Code, to include Internet access in
a list of certain telecommunications services that are exempt from the
taxes imposed by this chapter.  Defines "Internet."  Creates a subsection
from existing text.  Makes nonsubstantive changes.    

SECTION 3.  Amends Subchapter H, Chapter 151, Tax Code, by adding Section
151.325, as follows: 

Sec. 151.325.  CERTAIN PRICED CLOTHING OR FOOTWEAR; FABRICS.  (a)  Exempts
articles of clothing or footwear from this chapter's taxes when bought
between July 24 and August 8 and if the sales price is less than $50. 

(b)  Provides that Subsection (a) does not apply to articles of clothing or
footwear primarily designed for use in an athletic activity.  Provides that
accessories, such as jewelry, handbags, or umbrellas, also do not fall
under the items mentioned in Subsection (a). 

(c)  Exempts component parts of articles of clothing such as thread,
buttons, and fabric from the taxes if the sales price of the property is
less than $50 and if the person who purchases the property is not in the
business of fabricating or manufacturing clothing or footwear for sale. 

SECTION 4.  Provides that this Act takes effect on the first day of the
first calendar quarter beginning on or after the 90th day after
adjournment.  Makes application of this Act prospective. 

SECTION 5.  Emergency clause.
            Effective date:  upon passage.