HBA-RAR H.B. 987 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 987 By: Ehrhardt Ways & Means 2/25/1999 Introduced BACKGROUND AND PURPOSE Currently, Texas has one of the highest sales tax rates in the nation at 6.25 percent. Studies have shown that middle and lower income households spend a greater percentage of their income on the sales tax than do upper income households. H.B. 987 lowers the sales tax rate .5 cents per dollar, setting the sales tax rate at 5.75 percent. 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. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 151.051(b), Tax Code, to establish that the sales tax rate is 5-3/4 percent, rather than 6-1/4 percent, of the sales price of the taxable item sold. SECTION 2. Effective date: October 1, 1999. Makes application of this Act prospective. SECTION 3. Emergency clause.