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


Office of House Bill AnalysisH.B. 394
By: Keffer
Business & Industry
3/11/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, a person must 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 is not required to notify the chief appraiser of
the appraisal district of the going out of business sale.  Consequently, a
chief appraiser may not learn 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 result 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 and 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.