SRC-JXG S.B. 818 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 818
76R5960 DAK-DBy: Shapleigh
Finance
3/3/1999
As Filed


DIGEST 

Currently, Texas law requires articles of clothing or footwear with a sales
price less than $50 to be subject to a sales tax. Several states recently
instituted "sales tax holidays" for a limited period during August or
September, which coincides with back-to-school shopping. In each of these
states, only articles of clothing or footwear, whose sales price is less
than the specified dollar amount, are exempt from the sales tax. S.B. 818
would provide sales tax exemptions for fabric and other components of
clothing or footwear costing less than $50 that is purchased between August
1 and August 7, and would not apply to certain accessories, articles of
clothing designed for athletic activity, or an individual who is not in the
business of manufacturing clothing or footwear for sale. 

PURPOSE

As proposed, S.B. 818 provides a sales tax exemption for clothing or
footwear costing less than $50 that is purchased between August 1 and
August 7.  

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.CERTAIN PRICED CLOTHING OR FOOTWEAR; FABRICS. Provides that
the sale of an article of clothing or footwear intended to be worn on or
about the human body is exempt from taxes imposed by this chapter, if
certain conditions exist. Provides that Subsection (a) does not apply to
certain items. Provides that the sale of tangible personal property
intended to be a component part of an article of clothing or footwear for
the human body, including fabric, thread, knitting yarn, buttons, and
zippers, is exempt from taxes imposed by this chapter, if certain
conditions exist.  

SECTION 2. (a) Effective date: the 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.