HBA-AMW H.B. 3279 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3279
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 sewing notions purchased
during the exemption period.  House Bill 3279 exempts sewing notions from
sales, excise, and use taxes when the notions 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 3279 amends the Tax Code to provide that a sewing notion is
exempt from limited sales, excise, and use taxes if the sale of the sewing
notion 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 sewing notion is less than $50. 

EFFECTIVE DATE

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