SRC-ARR H.B. 2406 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2406
76R10587 CBH-DBy: Cuellar (Madla)
Finance
5/2/1999
Engrossed


DIGEST 

Currently, export items are exempt from the sales and use tax. Many brokers
are executing export documentation forms and delivering them to the
customers prior to export. The form is not supposed to be executed until
after visual verification of export. Customers can take these invalid
certificates to the store and redeem their tax even though they have never
left the county. Stores are allowed to refund the tax if the customer has a
valid certificate. H.B. 2406 would prohibit a refund of sales and use taxes
paid on items exported beyond the limits of the United States before a
certain time period. 

PURPOSE

As proposed, H.B. 2406 prohibits a refund of sales and use taxes paid on
items exported beyond the limits of the United States before a certain time
period. 

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 151.307, Tax Code, by amending Subsection (d) and
adding Subsections (e) and (f), to prohibit a retailer who receives
documentation under Subsection (b)(2) relating to the purchase of tangible
personal property exported beyond the limits of the United States from
refunding the tax paid under this chapter on that purchase before a certain
date. Provides that a retailer who makes a refund before the time
prescribed by Subsection (d) or makes a refund that is undocumented or
improperly documented is liable for the amount of the tax refunded with
interest. Makes a conforming change. 

SECTION 2. Effective date: September 1, 1999. Makes application of this Act
prospective to exemptions to the sales and use tax imposed under Chapter
151, Tax Code, claimed on or after January 1, 2000. 

SECTION 3. Emergency clause.