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.