BILL ANALYSIS


                                                        H.B. 1583
                                             By: Rusling (Turner)
                                                          Finance
                                                         05-10-95
                                Senate 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 and older whose
receipts totaled less than $5,000 in the prior four calendar
quarters from sales tax.

PURPOSE

As proposed, H.B. 1583 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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 151.347, Tax Code, to exempt from the
taxes imposed by this chapter lawn mowing and other yard
maintenance performed by an individual younger than 18 years of age
whose total receipts from taxable services described by Section
151.0048(1) or (2) of this code in the most recent four calendar
quarters do not exceed $5,000 or performed by an individual who is
self-employed and whose total receipts from taxable services
described by Section 151.0048(1) or (2) of this code in the most
recent four calendar quarters do not exceed $5,000.

SECTION 2. (a)  Provides that this Act takes effect on 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)  Makes application of this Act prospective.  
SECTION 3. Emergency clause.