HBA-SEP H.B. 2990 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2990
By: Gutierrez
Ways & Means
4/12/2001
Introduced



BACKGROUND AND PURPOSE 

Some customs brokers are executing export documentation forms and
delivering them to the purchasers prior to export.  Because export items
are exempt from sales and use tax, customers can take these invalid
certificates to the store to redeem their tax even though the property
never left the United States.  House Bill 2990 requires a purchaser in
order to redeem the refund to include an import document showing that the
property was imported into a country other than the United States. 

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 2990 amends the Tax Code to provide that, when an exemption is
claimed because tangible personal property is exported beyond the
territorial limits of the United States, tangible proof of export may be
shown only by documentation which includes the accompaniment of import
documents from the country of destination showing that the property was
imported into a country other than the United States.  A purchaser who has
documentation is authorized to recover tax paid to a retailer on the
purchase of tangible personal property that was exported beyond the
territorial limits of the United States by submitting to the retailer the
purchaser's receipt for the tax payment and documentation.  

EFFECTIVE DATE

September 1, 2001.