HBA-SEP H.B. 2990 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2990 By: Gutierrez Ways & Means 4/12/2001 Introduced BACKGROUND AND PURPOSE Some customs brokers are executing export documentation forms and delivering them to the purchasers prior to export. Because export items are exempt from sales and use tax, customers can take these invalid certificates to the store to redeem their tax even though the property never left the United States. House Bill 2990 requires a purchaser in order to redeem the refund to include an import document showing that the property was imported into a country other than the United States. 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 2990 amends the Tax Code to provide that, when an exemption is claimed because tangible personal property is exported beyond the territorial limits of the United States, tangible proof of export may be shown only by documentation which includes the accompaniment of import documents from the country of destination showing that the property was imported into a country other than the United States. A purchaser who has documentation is authorized to recover tax paid to a retailer on the purchase of tangible personal property that was exported beyond the territorial limits of the United States by submitting to the retailer the purchaser's receipt for the tax payment and documentation. EFFECTIVE DATE September 1, 2001.