LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 10, 2001
  
  
          TO:  Honorable Rodney Ellis, Chair, Senate Committee on Finance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB82  by Gallego (Relating to an exemption from sales and
               use taxes for certain taxable items sold by a qualified
               student organization affiliated with an institution of
               higher education.), As Engrossed
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend Chapter 151 of the Tax Code to exempt from sales tax
the first $5,000 in sales of taxable items sold during a calendar year
by a university or college student organization.  The exemption would
apply to sales not otherwise exempted as part of a tax-free one-day per
month sale.

The bill would take effect October 1, 2001.  For the purposes of the
proposed exemption, the period between October 1, 2001 and December 31,
2001 would be treated as a calendar year.

Methodology Summary

Data on sales by university or college organizations were gathered from
Comptroller tax files.  Based on the limited amount of sales that would
be affected by this exemption, no significant fiscal implication to the
State is anticipated.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, SD, SM