SRC-MKV S.B. 413 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 413
77R2871 GJH-FBy: Madla
Finance
3/30/2001
As Filed


DIGEST AND PURPOSE 

Under current law, a charitable organization licensed to conduct bingo is
not exempt from paying a limited sales, excise, and use tax on the
equipment used to conduct bingo games, although other organizations with
similar tax code designations have received such tax exemptions.  As
proposed, S.B. 413 amends the Tax Code to exempt bingo equipment from the
limited sales, excise, and use tax if the equipment is purchased by an
organization licensed to conduct bingo as authorized under the Bingo
Enabling Act. 

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 Chapter 151H, Tax Code, by adding Section 151.3105, as
follows: 

Sec. 151.3105.  BINGO EQUIPMENT.  Provides that bingo equipment, as defined
by Section 2001.002 (Definitions), Occupations Code, is exempted from the
taxes imposed by this chapter if the equipment is purchased by an
organization licensed to conduct bingo under Chapter 2001 (Bingo),
Occupations Code, and if it is used exclusively to conduct bingo authorized
under Chapter 2001, Occupations Code. 

SECTION 2.  Makes application of this Act prospective.

SECTION 3.  Effective date:  October 1, 2001.