SRC-VRA S.B. 1358 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1358
78R3363 CBH-DBy: Lindsay
Finance
4/13/2003
As Filed


DIGEST AND PURPOSE 

The United States Constitution prevents a state government from taxing
goods exported to foreign countries.  As a result, Texas and other states
must grant sales tax exemptions or rebates on goods sold in the United
States and shipped or taken to foreign countries.  Over time, fraud and
abuse have developed in the system as a result of the option to have a
customs broker document a purchase.  As proposed, S.B. 1358 removes the
option for foreign buyers to receive a sales tax refund by having a
customs broker document the purchase. 

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 151.307(b), Tax Code, to remove the
documentation provisions set forth in Subdivision (2) of existing text.
Renumbers subsequent subdivisions accordingly. 

SECTION 2.  Amends Section 322.107, Tax Code, to delete text in
Subdivision (3) relating to a sales tax exemption for goods delivered by a
retailer to a customs broker for shipment outside a taxing entity. 

SECTION 3.  Repealer:(1)  Section 151.157 (Customs Brokers), Tax Code;
    (2)  Section 151.158 (Export Stamps), Tax Code;
    (3)  Section 151.159 (Refunds; Identification Cards), Tax Code;
(4)  Sections 151.307 (c), (d), and (e) (Exemptions Required by Prevailing
Law), Tax Code; 
(5)  Section 151.712 (Civil Penalty for Persons Certifying Exports), Tax
Code; and 
(6)  Section 151.713 (Furnishing False Information to Customs Broker;
Civil), Tax Code. 

SECTION 4.(a)  Effective date:  October 1, 2003.
  (b)  Makes application of this Act prospective.