HBA-CBW H.B. 3274 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3274 By: Oliveira Ways & Means 3/22/2001 Introduced BACKGROUND AND PURPOSE The 76th Legislature passed a bill to create a sales tax holiday which exempts Texans from paying state and local sales taxes for most clothing and footwear priced at less than $100. The sales tax holiday takes place during a period beginning at 12:01 a.m. on the first Friday in August and ending at 12 midnight on the following Sunday. According to the comptroller of public accounts, Texans saved $37 million during the 2000 sales tax holiday and $32.6 million during the 1999 sales tax holiday. Although the tax holiday has been a success, the comptroller believes that more opportunities exist to relieve the tax burden for millions of Texans. House Bill 3274 exempts certain paper and paper holders from limited sales, excise, and use taxes during a sales tax holiday. 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 3274 amends the Tax Code to exempt certain paper and paper holders from limited sales, excise, and use taxes if the sale takes place during a period beginning at 12:01 a.m. on the first Friday in August and ending at midnight on the following Sunday and the sales price of the item is less than $5. The bill sets forth provisions regarding the type of paper and paper holders that are exempt from such taxes. EFFECTIVE DATE July 1, 2001, or if the Act does not receive the necessary vote, the Act takes effect October 1, 2001.