HBA-AMW H.B. 3275 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3275
By: Oliveira
Ways & Means
3/22/2001
Introduced



BACKGROUND AND PURPOSE 

The 76th Legislature approved a sales tax holiday for clothing and footwear
priced under $100 that begins at 12:01 a.m. on the first Friday in August
and ends at midnight on the following Sunday.  The comptroller of public
accounts estimates that Texans saved $37 million during the 2000 sales tax
holiday and $32.6 million during the 1999 sales tax holiday.  Current law
does not exempt from sales, excise, and use taxes certain school
mathematics instruments purchased during the exemption period.  House Bill
3275 exempts certain school mathematics instruments from sales, excise, and
use taxes when the instruments are purchased 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 3275 amends the Tax Code to provide that certain school
mathematics instruments are exempt from limited sales, excise, and use
taxes if the sale of the item takes place during the period beginning at
12:01 a.m. on the first Friday in August and ending at midnight on the
following Sunday and if:  

 _the sales price of the item is less than $5 and the item is a ruler that
is 15 inches in length or shorter, a protractor, a compass, or a square; or

 _the sales price of the item is less than $30 and the item is a calculator.


EFFECTIVE DATE

July 1, 2001, or if the Act does not receive the necessary vote, the Act
takes effect October 1, 2001.