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.