HBA-CBW H.B. 2627 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2627
By: Bonnen
Ways & Means
3/30/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, the fees for health and fitness club memberships are
assessed a sales and use tax. Many of these facilities compete with tax
exempt organizations providing the same services.  These tax exempt
organizations include YMCAs, community centers, city and county parks and
recreation centers, community colleges, and universities. According to a
report by the federal government entitled "Healthy People 2000,"  physical
activity and fitness is a priority for a healthy life. As a result,
physicians often prescribe exercise and physical activity to their patients
as a way to reduce health risks.  However, a tax on these health and
fitness club memberships may discourage people from joining these clubs.
House Bill 2627 exempts membership in or admission to a health spa from
sales and use taxes by excluding it from the definition of "amusement
services," "sale," and "purchase." 

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. 

ANALYSIS

House Bill 2627 amends the Tax Code to exempt  membership in or admission
to a  health spa from limited sales, excise, and use taxes by excluding it
from the definitions of "Amusement services,"  "sale," and "purchase." 

EFFECTIVE DATE

July 1, 2001, or if the  Act does not receive the  necessary  vote, the Act
takes effect October 1, 2001.