By Maxey                                        H.B. No. 2717

      75R3686 DAK-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to providing for rebates to individuals of sales and use

 1-3     tax in excess of five percent of their income.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter I, Chapter 151, Tax Code, is amended

 1-6     by adding Section 151.430 to read as follows:

 1-7           Sec. 151.430.  REBATE OF TAX IN EXCESS OF FIVE PERCENT OF

 1-8     INCOME.  (a)  An individual who pays an amount of tax under this

 1-9     chapter in a calendar year that is greater than an amount equal to

1-10     five percent of the individual's income for that year is entitled

1-11     to a rebate of the amount of tax in excess of that amount

1-12     determined as provided by this section.

1-13           (b)  The comptroller shall annually compute and publish the

1-14     average percentage paid in tax under this chapter of individuals'

1-15     income according to the following schedule:

1-16                 (1)  for the lowest 20 percent in income, $_____ was

1-17     paid in sales and use tax by the average individual above five

1-18     percent of the individual's income;

1-19                 (2)  the next highest 20 percent, $______ was paid in

1-20     sales and use tax by the average individual above five percent of

1-21     the individual's income;

1-22                 (3)  the next highest 20 percent, $_____ was paid in

1-23     sales and use tax by the average individual above five percent of

1-24     the individual's income;

 2-1                 (4)  the next highest 20 percent, $_____ was paid in

 2-2     sales and use tax by the average individual above five percent of

 2-3     the individual's income; and

 2-4                 (5)  the highest 20 percent, $_____ was paid in sales

 2-5     and use tax by the average individual above five percent of the

 2-6     individual's income.

 2-7           (c)  An individual entitled to a rebate under this section

 2-8     applies for the rebate by submitting to the comptroller a copy of

 2-9     the individual's federal income tax return.

2-10           (d)  The comptroller shall compute the amount of the rebate

2-11     by determining from the return what category under the schedule in

2-12     Subsection (b) applies to the individual and the amount of the

2-13     rebate is the amount indicated in the schedule that represents the

2-14     average amount above five percent of the income of the individual.

2-15           (e)  The comptroller may adopt rules and prescribe forms to

2-16     implement and administer the rebates provided under this section.

2-17           (f)  A request for a rebate under this section must be

2-18     submitted before August 15 of the tax year in which the rebate is

2-19     desired.

2-20           (g)  In this section, "income" means an individual's federal

2-21     adjusted gross income required to be reported by the Internal

2-22     Revenue Service under the Internal Revenue Code on Form 1040EZ,

2-23     1040A, or 1040.

2-24           SECTION 2.  This Act takes effect January 1, 1998, and

2-25     applies to rebates of sales tax beginning in 1998 for income tax

2-26     paid and sales and use tax paid beginning in 1997.

2-27           SECTION 3.  The importance of this legislation and the

 3-1     crowded condition of the calendars in both houses create an

 3-2     emergency and an imperative public necessity that the

 3-3     constitutional rule requiring bills to be read on three several

 3-4     days in each house be suspended, and this rule is hereby suspended.