HBA-SEP H.B. 3025 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3025 By: Chisum Ways & Means 4/12/2001 Introduced BACKGROUND AND PURPOSE Current law exempts from sales and use tax services involved in certain alterations of tangible personal property performed to comply with state environmental regulations, but does not exempt services involved in alterations of an improvement to real property. Such a tax increases the cost of compliance and may discourage businesses from making environmental investments beyond those required. House Bill 3025 exempts from the sales, excise, and use tax, environmental related services involved in an improvement to real 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 3025 amends the Tax Code to provide that the environmental and conservation services involved in certain alterations of real property or to tangible personal property are not subject to the limited sales, excise, and use tax if the services are purchased to meet or exceed the requirements of any commission, agency, court, or political, governmental, or quasi-governmental entity to protect the environment. EFFECTIVE DATE September 1, 2001.