HBA-RAR H.B. 987 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 987
By: Ehrhardt
Ways & Means
2/25/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, Texas has one of the highest sales tax rates in the nation at
6.25 percent.  Studies have shown that middle and lower income households
spend a greater percentage of their income on the sales tax than do upper
income households.  H.B. 987 lowers the sales tax rate .5 cents per dollar,
setting the sales tax rate at 5.75 percent. 

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 151.051(b), Tax Code, to establish that the
sales tax rate is 5-3/4 percent, rather than 6-1/4 percent, of the sales
price of the taxable item sold. 

SECTION 2.  Effective date: October 1, 1999. 
                       Makes application of this Act prospective.

SECTION 3.  Emergency clause.