HBA-SEP H.B. 836 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 836
By: Counts
Ways & Means
3/15/2001
Introduced



BACKGROUND AND PURPOSE 

The 75th Legislature created regional water planning groups that were
charged with developing plans to supply water to their region for the next
50 years.  The first set of plans completed by these groups requested
funding for utilities to replace or repair aging water supply
infrastructure.  To address the inadequacy of present infrastructure,
cities, municipal utility districts, and various water entities will need
to begin construction.  These entities have been provided with a sales tax
exemption on sales and services that relate to the infrastructure
construction necessary to accomplish this task.  Nonprofit water supply
corporations which also need to begin construction are often located in
rural, low income areas where citizens may not be able to afford the
necessary infrastructure upgrades.  House Bill 836 exempts a taxable item
from limited sales, excise, and use taxes if sold, leased, rented, stored,
used, or consumed by a nonprofit water supply or sewer service corporation
in connection with construction that is directly related to the
corporation's purpose. 

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 836 amends the Tax Code to exempt a taxable item from limited
sales, excise, and use taxes if sold, leased, rented, stored, used, or
consumed by a  nonprofit water supply or sewer service corporation in
connection with construction that is directly related to the corporation's
purpose.   

EFFECTIVE DATE

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