HBA-KDB H.B. 1965 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1965
By: Danburg
Ways & Means
3/22/2001
Introduced



BACKGROUND AND PURPOSE 

Each year, the Texas Department of Transportation (TxDOT) must remove
billboards in connection with state highway improvements.  In removing
billboards, TxDOT must pay compensation to  purchasers of advertising on
billboards.  However, TxDOT does not have the necessary funding for this
purpose, and as a result, billboards are relocated, even in cities that
have prohibited relocation.  House Bill 1965 provides that billboard
advertising services are taxable, and requires the proceeds from the
collection of limited sales, excise, and use taxes on the sale or use of
billboard advertising services to be deposited to the credit of the highway
billboard removal account (account), which may be appropriated only to
TxDOT.  The bill authorizes TxDOT to use the funds in the account only to
remove billboards during the improvement of the state highway system. 

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. 

ANALYSIS

House Bill 1965 amends the Tax Code to add billboard advertising service to
the definition of  "taxable services." 

The bill requires the proceeds from the collection of limited sales,
excise, and use taxes on the sale or use of billboard advertising services
to be deposited to the credit of the highway billboard removal account,
which is an account in the general revenue fund that may be appropriated
only to the Texas Department of Transportation (TxDOT).  The bill
authorizes TxDOT to use the money only to remove billboards during the
improvement of the state highway system.  The bill provides that billboard
advertising services are a taxable service. 

EFFECTIVE DATE

September 1, 2001.