LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                             February 6, 2001
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB863  by Dutton (Relating to a requirement that retail
               grocers post a sign listing items that are exempt from
               the sales and use tax.), As Introduced
  
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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 require a retail
grocer to post a sign, in a conspicuous location, listing relevant items
that are exempt from the limited sales and use tax.

The Comptroller would prescribe, by rule, the design and size of such
signs, as well as the list of items to be printed on the sign.  The
Comptroller would be required to review the sign on a biennial basis for
possible amendment.  Signs would be provided to retail grocers by the
Comptroller at a reasonable charge.

The bill would take effect September 1, 2001.  Retail grocers would be
required to post signs no later than January 1, 2002.  

Methodology

Under the bill,  the Comptroller would have to provide signs to retail
grocers at a "reasonable charge."  Although it is not precisely known at
this time how many signs would be required by grocers, or how much would
be charged for each sign, it is assumed that sign sales would have no
significant effect on the state's revenue stream.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, SD, SM