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.