JWB H.B. 758 75(R)BILL ANALYSIS


WAYS & MEANS
H.B. 758
By: West, George "Buddy"
3-3-97
Committee Report (Unamended)



BACKGROUND 

Section 285.061(a), Health and Safety Code presently allows hospital
districts authorized to impose ad valorem taxes to adopt, change, or
abolish a sales and use tax via election.  However, such sales tax
impositions are limited, in their final form, to one of the following
rates:  oneeighth percent; one-fourth percent; one-half percent; one
percent; one and one-half percent; or two percent.  These pre-set rates
may not allow sufficient flexibility for certain districts. 


PURPOSE

This bill would allow hospital districts to impose a final rate of sales
tax in increments of oneeighth of one percent, while maintaining the
present minimum and maximum allowable rates of one-eighth and two percent,
respectively. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 


SECTION BY SECTION ANALYSIS

SECTION 1:  Amends Section 285.061(a), Health and Safety Code, by adding
language    allowing the imposition of district sales tax at increments of
one-eighth of    one percent, with a minimum allowable rate of one-eighth
percent, and a    maximum allowable rate of two percent. 

   Strikes previous language limiting allowable tax rates to one-eighth
percent, one-fourth percent, one-half percent, one percent, one and one
half percent, and two percent. 

SECTION 2:  Emergency Clause.