HBA-JLV H.B. 2833 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2833
By: Grusendorf
Ways & Means
7/3/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, state law did not explicitly exclude a
non-attorney providing statutory foreclosure services from being regarded
as a provider of debt collection services, which was considered a taxable
event for state sales tax purposes.  Due to this ambiguity in law,
attorneys that were exempted from paying sales tax could have had a
competitive advantage in providing foreclosure services over nonattorneys
offering the same services.  Many sought to make it clear that a trustee,
whether an attorney or a non-attorney, would not be liable for sales tax in
the trustee's role as a fiduciary for both the borrower and lender when
conducting a foreclosure sale.  House Bill 2833 provides that debt
collection service does not include a service provided by a person acting
as a trustee in connection with the foreclosure sale of certain 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. 

ANALYSIS

House Bill 2833 amends the Tax Code to provide that debt collection service
does not include a service provided by a person acting as a trustee in
connection with the foreclosure sale of real property under a lien created
by a mortgage, deed of trust, or security instrument. 

EFFECTIVE DATE

July 1, 2001.