HBA-SEP H.B. 3394 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3394
By: Oliveira
Ways & Means
4/12/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, customers who purchase goods for export can redeem state
sales tax at retail locations on issuance of a certificate by a licensed
customs broker that the goods are for export.  However, since issuance of
these certificates in many instances occurs before the goods leave the
United States, there is no valid mechanism to ensure that these goods are
in fact exported.  The result is a loss of sales tax revenue by the state.
House Bill 3394 creates export verification centers to verify that goods
purchased for export leave the country.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the comptroller of public accounts in
SECTION 1 (Section 151.158, Tax Code) of this bill.   

ANALYSIS

House Bill 3394 amends the Tax Code to require the comptroller of public
accounts (comptroller) to charge an amount prescribed by comptroller rule
for each transaction to verify that tangible personal property has been
exported beyond the territorial limits of the United States.  The bill
removes provisions regarding export stamps.   

The bill replaces the current means of proving that tangible personal
property has been exported beyond the territorial limits of the United
States with documentation provided by an export verification center
operated by the comptroller.   

EFFECTIVE DATE

January 1, 2002.