HBA-AMW H.B. 3609 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3609
By: Davis, Yvonne
Ways & Means
4/1/2001
Introduced



BACKGROUND AND PURPOSE 

Current law exempts from limited sales, excise, and use taxes gas and
electricity used in the manufacturing of goods under contract with the
United States government, foreign governments, and defense-related or
national security-related projects, but does not exempt the owner of a
building that leases space to a manufacturer involved in these activities.
House Bill 3609 exempts from limited sales, excise, and use taxes for gas
and electricity the owner of a building that leases space to a manufacturer
involved in a contract with or on behalf of the United States government or
foreign governments, defense or national security- related electronics,
classified intelligence data processing and handling systems, or
defense-related platform modifications or upgrades.   

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 3609 amends the Tax Code to provide that natural gas or
electricity is exempt from limited sales, excise, and use taxes if it is
sold to an owner of a building or a management company that directly passes
the actual charge for gas or electricity to a tenant who performs exempt
activities involving contracts  with or on behalf of the United States
government or foreign governments, defense or national security-related
electronics, classified intelligence data processing and handling systems,
or defense-related platform modifications or upgrades. 

EFFECTIVE DATE

September 1, 2001.