HBA-DMD H.B. 113 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 113 By: Maxey Agriculture & Livestock 2/8/1999 Introduced BACKGROUND AND PURPOSE Most back-to-school shopping for clothes and supplies occurs during August of each year. Currently, there are no tax exemptions that would assist parents when purchasing school clothes and supplies for their children. This bill would exempt certain individual clothing, footwear, and school supply items from sales tax during the month of August, with a cap of $50 per individual item. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter H, Chapter 151, Tax Code, by adding Section 151.325, as follows: Sec. 151.325. CLOTHING FOR CHILDREN PRIOR TO START OF SCHOOL. Exempts from the taxes imposed by this chapter the sale of clothing and footwear during August designed to be worn by a person younger than 13. Provides that this section does not apply to clothing or footwear primarily designed and used for athletic activity or protective use, nor to accessories, including jewelry, handbags, luggage, umbrellas, wallets, watches, and similar items. SECTION 2. Amends Chapter 151H, Tax Code, by adding Section 151.326, as follows: Sec. 151.326. SCHOOL SUPPLIES PRIOR TO START OF SCHOOL. Exempts tangible items from taxes imposed by this chapter, if the item is required for use by a student in a class in a public or private elementary or secondary school, on a list issued by the teacher or school prior to the beginning of the school year, and purchased during August. Establishes that the purchaser must provide the seller an exemption certificate that certifies the tangible items as exempt unless the seller maintains a separate section or display that contains only items that qualify. SECTION 3. Provides that this Act takes effect on the first day of the first calendar quarter beginning on or after the date that it may take effect under Section 39, Article III, Texas Constitution. Makes application of this Act prospective. SECTION 4. Emergency clause. Effective date: upon passage.