SRC-JXG S.B. 301 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 301
76R2886 DAK-DBy: Ellis
Finance
2/25/1999
As Filed


DIGEST 

Currently, Texas' sales taxes combined with other local sales taxes are
among the highest in the nation. By eliminating taxes on articles of
clothing or footwear, the state can lessen the burden of the sales tax for
necessary goods at the beginning of the school year. This bill would
provide sales taxes exemptions for purchases up to $500 on articles of
clothing or footwear designed for persons 13 years of age or younger. 

PURPOSE

As proposed, S.B. 301 provides sales tax exemptions for purchases up to
$500 on articles of clothing or footwear for persons 13 years of age or
younger. 

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 151.325, as
follows: 

Sec. 151.325. CLOTHING FOR CHILDREN PRIOR TO START OF SCHOOL. Provides that
during August the sale of an article of clothing or footwear designed to be
worn on or about the body of a person younger than 13 years of age is
exempted from the taxes imposed by this chapter if the sales price of the
article is less than $500. Provides that this section does not apply to
certain items.  

SECTION 2. (a) Effective date: first day of the first calendar quarter
beginning on or after the date that it may take effect under Section 39,
Article III, Texas Constitution.  

 (b) Makes application of this Act prospective. 

SECTION 3. Emergency clause.