HBA-RBT H.B. 2858 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2858
By: Siebert
Ways & Means
4/13/1999
Introduced



BACKGROUND AND PURPOSE 

In 1987, the legislature enacted legislation allowing taxing entities the
authority to repeal the application of the sales tax exemption for
telecommunication services, thereby expanding the sales tax base.
Currently, five state-authorized transit authorities (Austin, Dallas, El
Paso, Laredo and Corpus Christi) have repealed the exemption and are
collecting a sales tax on telecommunications services. 

Examples of telecommunications services subject to the sales tax exemption
include basic local exchange service, installation and service connection
fees, intrastate long-distance service paging, and facsimile services and
mobile telephone services. 

H.B. 2858 amends Section 322.109, Tax Code, to specify that taxing
authorities governed by appointed boards be required to submit any plan to
increase taxes for approval by the appointing elected body or to the
voters. 

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 322.019, Tax Code, by amending Subsection (b),
adding a new Subsection (d), and redesignating existing Subsection (d) as
(e), to prohibit the governing board of a taxing entity created under
Chapter 451 (Metropolitan Rapid Transit Authorities), Transportation Code
from repealing the application of the exemption provided by Subsection (a)
unless the repeal is first approved by a majority of the members of the
governing body of each municipality that created the taxing entity.
Provides that a reinstatement of the exemption must be approved in the same
manner.  Makes conforming changes. 

SECTION 2.  Makes application of this Act prospective.

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