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.