HBA-SEP, EDN H.B. 20 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 20
By: Corte
Ways and Means
3/15/2001
Introduced



BACKGROUND AND PURPOSE 

The 72nd Legislature, in an effort to find alternate tax revenue streams,
added a pass through sales tax on trash collection, which is frequently a
service performed by municipalities.  Trash collection is often included on
a customer's utility bill which is already subject to sales tax, resulting
in double taxation for this basic customer need.  House Bill 20 removes
waste collection as a real property service that is taxable, if the service
is directly provided by a municipality. 

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 20 amends the Tax Code to provide that "real property service"
does not include the removal or collection of garbage, rubbish, or other
solid waste if such services are directly provided by a municipality.  

EFFECTIVE DATE

July 1, 2001, or if the Act does not receive the necessary vote, the Act
takes effect October 1, 2001.