BILL ANALYSIS



C.S.H.B. 608
By: Brimer
May 3, 1995
Committee Report (Substituted)


BACKGROUND

Currently, the comptroller requires sellers of taxable items to
keep records, receipts, invoices, and other information in the form
that the comptroller reasonably requires.  Information in or
derived from such a record or report is confidential and not open
to public inspection, except for persons and uses specifically set
forth in Section 151.027 of the Tax Code.  Current law does not
permit the information to be released to a municipality that has
adopted and is charging a sales and use tax.

PURPOSE

The bill would authorize the comptroller to provide information to
certain municipalities relating to the amount of tax paid to the
municipality by certain persons doing business in that
municipality.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 151.027(c), Tax Code, by adding
           Subsection (c)(6) permitting the delivery to a
           municipality of sales and use tax information in
           accordance with Section 321.3022 (added by this bill),
           Tax Code.

SECTION 2. Amends Subchapter D, Chapter 321, Tax Code, by adding
           Section 321.3022
           TAX INFORMATION.  This section sets forth the
           circumstances where a municipality may receive sales and
           use tax information.  If the comptroller receives a
           written request by the mayor or chief executive officer
           of the city (only cities with populations less than
           50,000 are eligible), the comptroller shall provide
           information relating to the amount of tax paid to the
           city by each person doing business in the city that
           annually remits more than $100,000 in sales tax.
           Information received by a municipality under this
           section is confidential, and may only be used for
           purposes of economic forecasting. The comptroller may
           set and collect fees to cover the expense of compiling
           and providing the information to the city.

SECTION 3. Emergency Clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 608 limits the application of this bill to those cities
with less than 50,000 population, and to businesses that annually
remit more than $100,000 in sales tax.  The substitute also limits
the use of the information for economic forecasting, whereas the
original bill specified enforcement purposes.





SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance with the rules, and a public
hearing was held on February 28, 1995.  Representative Wohlgemuth
explained the bill.  Without objection, H.B. 608 was left pending
before the committee.

On April 5, 1995, the committee met in a formal meeting.  The chair
referred H.B. 608 to the Subcommittee on Administrative Tax.

On April 27, 1995, the committee met in a formal meeting.  H.B. 608
was recalled from subcommittee and laid out before the committee. 
The committee considered a complete substitute by Representative
Craddick.  Without objection, the committee adopted C.S.H.B. 608. 
By a record vote of 6 ayes, 0 nays, 0 present not voting and 5
absent, the committee voted to report H.B. 608 to the House as
substituted with the recommendation that it do pass.

     Testimony received in favor of the bill (2/28/95):
           Paul Stevens, representing himself

     Testimony received against the bill (2/28/95):
           Mike Keeler, representing himself
           Bill Allaway, representing the Texas Assn. of Taxpayers