SRC-DPW H.B. 871 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 871
76R1721 SMJ-DBy: Goodman (Harris)
Finance
5/3/1999
Engrossed


DIGEST 

Currently, under Texas law, a sales tax is imposed on the sale of an animal
by a nonprofit animal shelter, including an adoption fee that is accepted
by such a shelter.  The adoption fee is utilized only to cover the expenses
of preparing the animal for adoption and not to profit the shelter.  This
bill would exempt the sale of animals by nonprofit animal shelters from the
sales tax. 

PURPOSE

As proposed, H.B. 871 exempts the sale of animals by nonprofit animal
shelters from the sales tax. 

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 Chapter 151H, Tax Code, by adding Section 151.343, as
follows: 

Sec. 151.343. ANIMALS SOLD BY NONPROFIT ANIMAL SHELTERS. Exempts the sale,
including the acceptance of a fee for adoption, of an animal by a nonprofit
animal shelter, as that term is defined by Section 823.001, Health and
Safety Code, from the taxes imposed by this chapter. 

SECTION 2. Effective date: the first day of the first calendar quarter
beginning on or after the earliest date that it may take effect under
Section 39, Article III, Texas Constitution.  Makes application of this Act
prospective. 

SECTION 3. Emergency clause.