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.