SRC-TBR H.B. 82 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 82
77R177 KEL-DBy: Gallego (Duncan)
Finance
4/5/2001
Engrossed


DIGEST AND PURPOSE 

Currently, university and college student organizations are taxed on income
generated through fund raising activities.  As proposed, H.B. 82 provides
tax exemptions for the first $5,000 of total receipts raised by qualified
student organizations. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 151.321, Tax Code, as follows:

(b)  Provides that in each calendar year, the first $5,000 of a qualified
student organization's total receipts from sales of taxable items not
otherwise exempt under Subsection (a) is exempt from the taxes imposed by
Subchapter C.  

(c)  Provides that a student organization qualifies for the exemptions
under Subsections  (a) and (b) if the student organization meets certain
requirements. 

SECTION 2. (a)  Effective date: October 1, 2001.

(b)  Provides that the change in law made by this Act does not affect taxes
imposed before the effective date of this Act, and the law in effect before
the effective date of this Act is continued in effect for purposes of
liability for and collection of those taxes. 

(c)  Provides that for purposes of application of Section 151.321(b), Tax
Code, as added by this Act, to the 2001 calendar year, the period beginning
October 1, 2001, and ending December 31, 2001, is treated as a calendar
year.