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  The amendment was withdrawn.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.