HBA-RBT C.S.H.B. 3623 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3623
By: Hilbert
Ways & Means
5/3/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

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.  C.S.H.B. 3623 removes this group from the sales tax
obligation if the services are purchased by an owner of real property. 

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 Section 151.0048(b), Tax Code, to remove the surveying
of real property from the definition of "real property service" if the
services are purchased by an owner of real property. 

SECTION 2.  Effective date: October 1, 1999.
                       Makes application of this Act prospective.
            Provides that this Act expires August 31, 2001.
SECTION 3.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute differs from the original in SECTION 1 by amending Section
151.0048(b), Tax Code, to remove the surveying of real property from the
definition of "real property service" if the services are purchased by an
owner of real property.  The original bill amended Section 151.0048(a), to
delete the surveying of real property from the definition of "real property
service," and specifically provided in Subsection (b) that the term did not
include such surveying. 

The substitute differs from the original by removing SECTION 2 of the
original (proposed Section 17A (Additional Fees), Article 5282c, V.T.C.S.). 

The substitute modifies the original by redesignating SECTIONS 3 and 4 of
the original to SECTIONS 2 and 3 of the substitute. 

The substitute differs from the original in SECTION 2 of the substitute by
making this Act expire on August 31, 2001.