BILL ANALYSIS H.B. 1583 By: Rusling March 16, 1995 Committee Report (Amended) BACKGROUND In 1987, the sales tax was extended to lawn and landscaping labor. An amendment exempted persons younger than 18 years of age whose receipts totaled less than $1,000 in the prior calendar quarter from sales tax. In 1989, legislation was passed to extend this exemption to include persons 65 years of age or older whose receipts totaled less than $5,000 in the prior four calendar quarters from sales tax. PURPOSE This bill extends the exemption from sales tax on lawn and landscaping labor to certain persons. 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 151.347 (Certain Lawn and Yard Service), Tax Code, to exempt from sales tax an individual who is self-employed, having no employees, and whose total receipts from taxable services in the most recent four calendar quarters are less than $5,000. SECTION 2. (a) Effective Date: The first day of the first calendar quarter beginning on or after the date that it may take effect under Section 39, Article III, Texas Constitution. (b) The changes do not affect taxes imposed before the effective date. The law in effect continues for purposes of the liability for and collection of those taxes. SECTION 3. Emergency Clause. EXPLANATION OF AMENDMENT COMMITTEE AMENDMENT amends Section 1 of the bill by deleting the requirement that an individual not have any employees in order to receive the exemption. It also raises the total receipts limit to $10,000. SUMMARY OF COMMITTEE ACTION Public notice was posted in accordance to the rules and a public hearing was held on March 7, 1995. The Chair laid out amendment #1 by Representative Horn. The amendment was withdrawn. The Chair laid out amendment #2 by Representative Horn. By a record vote of 8 ayes, 0 nays, 0 present not voting and 3 absent, the committee voted to adopt amendment #2. By a record vote of 8 ayes, 0 nays, 0 present not voting and 3 absent, the committee voted to report H.B. 1583 with amendment to the House with the recommendation that it be sent to the Local and Consent Calendar and that it do pass.