HBA-JRA H.B. 1258 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1258 By: Najera Ways & Means 2/26/1999 Introduced BACKGROUND AND PURPOSE The Medal of Honor is the highest award for valor in action against an enemy force which can be bestowed upon an individual serving in the Armed Services of the United States. Generally presented to its recipient by the President of the United States of America in the name of the Congress, it is often called the Congressional Medal of Honor. Currently, there are five living Medal of Honor recipients in Texas. H.B. 1258 exempts Congressional Medal of Honor winners who were Texas residents at the time they entered military service from the sales and use tax and the hotel occupancy tax. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Comptroller of Public Accounts of the State of Texas in SECTION 1 (Section 102.005, Tax Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subtitle A, Title 2, Tax Code, by adding Chapter 102, as follows: CHAPTER 102. EXEMPTIONS FOR CONGRESSIONAL MEDAL OF HONOR WINNERS Sec. 102.001. APPLICABILITY. Provides that this chapter applies only to a recipient of the Congressional Medal of Honor who was a resident of this state at the time the person entered military service. Sec. 102.002. SALES AND USE TAX EXEMPTION. Exempts a person to whom this chapter applies from paying certain state and local sales and use taxes for any item or service purchased by the person for personal use. Sec. 102.003. HOTEL OCCUPANCY TAX EXEMPTION. Exempts a person to whom this chapter applies from paying tax for the personal use or possession or the right to the personal use or possession of a room or space in a hotel. Sec. 102.004. ISSUANCE OF TAX EXEMPT CERTIFICATE. Requires the Comptroller of Public Accounts for the State of Texas (comptroller) to locate and issue to each person to whom this chapter applies a certificate stating that the person is exempt from taxation as provided by this chapter. Sec. 102.005. COLLECTION OF EXEMPTED TAXES PROHIBITED. Prohibits a tax collector from collecting the tax exempted under this chapter from a person who presents a certificate issued under Section 102.004. Provides that the tax collector is not liable for the amount of the uncollected tax and is required to report the amount of uncollected tax in any manner that the comptroller, by rule, may specify. SECTION 2. Emergency clause. Effective date: upon passage.