SRC-JBJ H.B. 3623 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 3623
By: Hilbert (Ratliff)
Finance
5/14/1999
Engrossed


DIGEST 

In 1987, the Texas Legislature enacted a tax bill which greatly expanded
the list of goods and services subject to state and local sales taxes.
Although the legislature considered expanding the sales tax base to include
"professional services," this proposal was rejected.  Accordingly,
professional services, such as engineering, architectural, legal,
accounting, and medical services remain exempt from the sales tax.
Surveying services were included in the definition of  "real property
services."  Texas surveyors are the only professional services subject to
the state sales tax.  H.B. 3623 amends application of the sales tax to land
surveying services. 

PURPOSE

As proposed, H.B. 3623 amends the application of the sales tax to land
surveying services. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

ARTICLE 1

SECTION 1.01.  Amends Section 151.0048(b), Tax Code, to redefine "real
property service" to not include a service listed under Subsection (a) if
the service is purchased by a contractor, or under Subsection (a)(6) if
purchased by an owner of real property.  Makes a conforming change. 

SECTION 1.02  Effective date of this article: October 1, 1999.
               Makes application of Section 1.01 prospective.
            
ARTICLE 2

SECTION 2.01.  Amends Section151.0048(b), Tax Code, to define "real
property service." 

SECTION 2.02.   Effective date of this article:  October 1, 2001.
       Makes application of Section 2.01 prospective. 

ARTICLE 3.

SECTION 3.01.  Emergency clause.