HBA-JLV H.B. 3277 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3277
By: Oliveira
Ways & Means
3/22/2001
Introduced



BACKGROUND AND PURPOSE 

The 76th Legislature approved a sales tax holiday for clothing and footwear
priced under $100 beginning at 12:01 on the first Friday in August and
ending at midnight on the following Sunday.  According to the comptroller
of public accounts, Texans saved $32.6 million in 1999 and $37 million in
2000.  Current law does not exempt from sales tax certain arts and crafts
items purchased during the exemption period.  House Bill 3277 exempts
certain arts and crafts items from sales taxes  when purchased during the
August sales tax exemption period. 

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 3277 amends the Tax Code to exempt certain arts and craft items
from the sales and use tax for a limited time.  The bill provides that a
tangible item is exempt if the sale of the item takes place during a period
beginning on 12:01 a.m. on the first Friday in August and ending at 12
midnight on the following Sunday; the sales price of the item is less than
$5; and the item is scissors, glue, including paste and a glue stick, or
tape, including masking tape and scotch-type tape. 

EFFECTIVE DATE

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