SRC-MAX H.B. 758 75(R) BILL ANALYSIS Senate Research Center H.B. 758 By: West (Duncan) Intergovernmental Relations 4-28-97 Engrossed DIGEST Currently, Section 285.061(a), Health and Safety Code, allows hospital districts authorized to impose ad valorem taxes to adopt, change, or abolish a sales tax and use tax via an election. These sales taxes are ultimately limited to a percentage. This bill changes the limitations on sales and use taxes to provide that the tax is authorized to be imposed by the hospital district in increments of one-eighth of one percent, within a minimum of one percent and a maximum of two percent. PURPOSE As proposed, H.B. 758 amends a provision regarding sales and use tax rates of certain hospital districts. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 285.061(a), Health and Safety Code, to authorize a hospital district to impose a sales and use tax in increments of one-eighth of one percent, with a minimum tax of oneeighth of one percent and a maximum tax of two percent, rather than to impose a sales and use tax at a rate of one eighth percent, one fourth percent, one half percent, one percent, one and one half percent, or two percent. SECTION 2. Emergency clause. Effective date: upon passage.