SRC-MKV S.B. 1678 77(R)BILL ANALYSIS


Senate Research CenterS.B. 1678
77R13069 DAK-DBy: Jackson
Finance
4/20/2001
Committee Report (Amended)


DIGEST AND PURPOSE 

Currently, a printed newspaper is exempt from the sales tax, but there is
no statutory provision regarding exemption from taxes for a newspaper that
is faxed or e-mailed.  S.B. 1678 adds to the Tax Code an exemption for
electronic information services if certain requirements for the service are
met.  

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 151.351, Tax Code, to add an exception as
provided by Section 151.3511 relating to an exemption from taxes imposed by
this chapter. 

SECTION 2.  Amends Chapter 151H, Tax Code, by adding Section 151.3511, as
follows: 

Sec. 151.3511.  LOCAL ELECTRONIC INFORMATION SERVICES.  Provides that the
sale of an information service is exempt from taxes imposed by this chapter
if the services meets certain requirements. 

SECTION 3.  Provides that Section 151.3511, Tax Code, as added by this Act,
expires August 31, 2003. 

SECTION 4.  (a) Effective date: July 1, 2001, or October 1, 2001.

  (b) Makes application of this Act prospective.

SUMMARY OF COMMITTEE CHANGES

Differs from original by adding a new SECTION 3 that provides that Section
151.3511, Tax Code, as added by this Act, expires August 31, 2003.
Redesignates original SECTION 3 as SECTION 4.