HBA-JLV H.B. 2833 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2833 By: Grusendorf Ways & Means 7/3/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature, state law did not explicitly exclude a non-attorney providing statutory foreclosure services from being regarded as a provider of debt collection services, which was considered a taxable event for state sales tax purposes. Due to this ambiguity in law, attorneys that were exempted from paying sales tax could have had a competitive advantage in providing foreclosure services over nonattorneys offering the same services. Many sought to make it clear that a trustee, whether an attorney or a non-attorney, would not be liable for sales tax in the trustee's role as a fiduciary for both the borrower and lender when conducting a foreclosure sale. House Bill 2833 provides that debt collection service does not include a service provided by a person acting as a trustee in connection with the foreclosure sale of certain 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. ANALYSIS House Bill 2833 amends the Tax Code to provide that debt collection service does not include a service provided by a person acting as a trustee in connection with the foreclosure sale of real property under a lien created by a mortgage, deed of trust, or security instrument. EFFECTIVE DATE July 1, 2001.