HBA-JRA, RBT H.B. 3623 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3623
By: Hilbert
Ways & Means
7/26/1999
Enrolled



BACKGROUND AND PURPOSE 

In 1987 the Texas legislature enacted a tax bill which greatly expanded the
list of goods and services subject to state and local sales taxes.
Although the legislature considered expanding the sales tax base to include
"professional services," this proposal was rejected.  Accordingly,
professional services, such as engineering, architectural, legal,
accounting, and medical services remain exempt from the sales tax.
Surveying services were included in the definition of "real property
services." Texas surveyors are the only professional services subject to
the state sales tax.  H.B. 3623 removes this group from the sales tax
obligation if the services are purchased by an owner of real property. 

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 151.0048(b), Tax Code, to remove the surveying
of real property from the definition of "real property service" if the
services are purchased by an owner of real property. 

SECTION 2.  Effective date: October 1, 1999.
                       Makes application of this Act prospective.
            Provides that this Act expires August 31, 2001.

SECTION 3.  Emergency clause.