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