HBA-JLV S.B. 1678 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1678
By: Jackson
Ways & Means
5/8/2001
Engrossed



BACKGROUND AND PURPOSE 

Currently, a printed newspaper is exempt from the limited sales and use
tax, but there is no statutory provision regarding exemption from taxes for
a newspaper that is faxed or e-mailed. Senate Bill 1678 exempts certain
electronic information services from the limited sales, excise, and use
tax.  

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

Senate Bill 1678 amends the Tax Code to provide that the sale of an
information service is exempt from the limited sales, excise, and use tax
if the service delivers its information by fax or electronic mail over the
Internet, does not contain any advertisements, is issued not more than once
each business day, costs less than $500 for a yearly subscription or an
equivalent amount if the subscription is for a period other than once a
year, and does not have more than 750 subscribers.  The above provisions
expire August 31, 2003. 

EFFECTIVE DATE

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