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.