HBA-JLV H.B. 3278 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3278
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 beginning at 12:01 a.m. on the first Friday in August and
ending at midnight on the following Sunday.  According to the comptroller
of public accounts, Texans saved $32.6 million in 1999 and $37 million in
2000.  Current law does not exempt from sales tax backpacks purchased
during the exemption period.  House Bill 3278 exempts certain backpacks
from sales taxes when purchased during the August sales tax exemption
period. 

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 3277 amends the Tax Code to exempt backpacks from the sales and
use tax for a limited time. The bill provides that a backpack is exempt if
the sale of the backpack takes place during a period beginning on 12:01
a.m. on the first Friday in August and ending at midnight on the following
Sunday and applies only if the sales price of the backpack is less than
$40. 

EFFECTIVE DATE

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