SRC-JJJ H.B. 2146 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2146
76R5550 SMJ-FBy: Allen (Harris)
Finance
5/11/1999
Engrossed


DIGEST 

Currently, food, candy, chewing gum, toys, and other items designed
primarily to be used or played with by children that are sold through
coin-operated bulk vending machines for less than 25 cents are exempt from
sales, excise, and use tax.  H.B. 2146 would increase the limit on this
exemption to 50 cents. 

PURPOSE

As proposed, H.B. 2146 establishes provisions regarding the application of
the sales tax on certain items sold through coin-operated vending machines.

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 151.305(a), Tax Code, to provide that certain
tangible property sold through a coin-operated bulk vending machine for a
total consideration of 50 cents, rather than 25 cents, or less is exempt
from the taxes imposed by this chapter. 
   
SECTION 2.  (a) 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. 

 (b) Makes application of this Act prospective.

SECTION 3.  Emergency clause.