BILL ANALYSIS


                                                         S.B. 439
                                                    By: Wentworth
                                                          Finance
                                                         05-02-95
                                     Committee Report (Unamended)
BACKGROUND

Current law prohibits a municipality from adopting an additional
sales and use tax if the municipality is included or partially
located in the boundary of a rapid transit authority or a regional
transportation authority.

PURPOSE

As proposed, S.B. 439 prohibits a municipality from being
disqualified from adopting an additional sales and use tax if the
municipality has not elected to participate in a metropolitan or
regional transportation authority.

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 321.101, Tax Code, as follows:

     Sec.  321.101.  TAX AUTHORIZED.  (a) and (b) Make no changes.
     
     (c) Provides that a municipality is not disqualified from
       adopting an additional sales and use tax if the municipality
       has not elected to participate in the authorities listed in
       Subsection (b) of this section and does not impose the tax
       authorized under those subsections.
       
       (d)-(h) Redesignate existing Subsections (c)-(g).
       
       SECTION 2.   Emergency clause.
           Effective date: 90 days after adjournment.