HBA-TBM, EDN H.B. 394 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 394
By: Keffer
Business & Industry
7/9/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, a person was required to file an original
inventory with the county clerk of the county in which the person's
principal place of business in the state is located to receive a permit to
conduct a going out of business sale.  The county clerk was not required to
notify the chief appraiser of the appraisal district of the going out of
business sale.  Consequently, a chief appraiser may not have learned that a
business no longer exists until after it has been liquidated.  By that
time, the tax rolls for the new year may have been created, which could
have resulted in erroneous tax assessments.  House Bill 394 requires a
person to file an original inventory with the chief appraiser, rather than
the county clerk, to receive a permit for a going out of business sale.   

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 394 amends the Business & Commerce Code to transfer the duties
of the county clerk of a county to the chief appraiser of the appraisal
district as they relate to going out of business sales.  The bill requires
the chief appraiser to send notice of the filing to the comptroller, the
county clerk of the county in which the filer's principal place of business
is located, and the tax collector for each of the taxing units that tax the
property described in the original inventory not later than the fifth
business day after the date on which a person files an original inventory
of merchandise to be sold. 

EFFECTIVE DATE

September 1, 2001.