SRC-HRD S.B. 812 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 812
By: Truan
Education
3-20-97
As Filed


DIGEST 

Currently, Texas law provides that an exporter is entitled to a sales tax
refund for goods destined for export as long as such goods are stored in
Texas no longer than 30 days.  The exporter does not receive a refund if
the exporter stores goods for export for longer than 30 days.  This bill
would extend the time an exporter is allowed to store such goods to 175
days and still receive a sales tax refund. 

PURPOSE

As proposed, S.B. 812 provides an exemption for tangible personal property
exported beyond the territorial limits of this state on or before the
175th day after the date of purchase in this state. 

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 151.307, Tax Code, by adding Subsection (e), to
provide that tangible personal property exported beyond the territorial
limits of this state on or before the 175th day after the date of purchase
in this state is presumed to be in the stream of export during the period
between purchase and export and, unless the presumption is overcome, does
not lose its exemption as an export.  Provides that tangible personal
property held in this state for more than 175 days after the date of
purchase is presumed to have been stored in this state and not eligible
for an exemption as an export. 

SECTION 2. (a) Effective date:  pending voter approval.
  (b) Makes application of this Act prospective.

SECTION 3. Emergency clause.