BILL ANALYSIS


                                                         S.B. 982
                                                        By: Truan
                                   Int'l Relations, Trade & Tech.
                                                          3-22-95
                                     Committee Report (Unamended)
BACKGROUND

Prior to 1969, Mexican businesses could give a limited number of
resale certificates to Texas businesses.  Currently, resale
certificates are not honored because of the inability to verify
that items were purchased for resale in other countries.  The
Border States Caucus has developed a uniform information exchange
agreement authorizing information exchange with Mexico, allowing
Texas to confirm purchases for resale.

PURPOSE

As proposed, S.B. 982 includes the United Mexican States in the
state tax provisions.

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 151.006, Tax Code, to include the United
Mexican States as well as the United States of America or a
possession or territory of the U.S. regarding a tangible property
acquired or taxable service for the purpose of reselling in the
definition of "sale for resale."

SECTION 2. Amends Section 151.152, Tax Code, by adding Subsection
(c), to require a resale certificate from a person engaged in
business in the United Mexican States, in addition to the
information required in Subsection (b), to provide the purchaser's
United Mexican States federal identification number and any other
information required by the comptroller.

SECTION 3. Amends Section 151.027(c), Tax Code, to provide that
this section does not prohibit examination of information by a tax
official of the United Mexican States, among others.

SECTION 4. Amends Section 111.006, Tax Code, by amending Subsection
(a) and adding Subsection (d), as follows:

     (a)  Provides that Subsection (d) is an exception to this
     section.
     
     (d)  Authorizes information made confidential in this title to
     be examined by a state officer, a law enforcement officer of
     this state, a tax official of another state, a tax official of
     the United Mexican States, an official of the United States,
     or an authorized representative of any of these officers or
     officials under certain conditions.
     
SECTION 5. Effective date: September 1, 1995.

SECTION 6. Emergency clause.