SRC-JLB S.B. 1705 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1705
78R8412 DAK-FBy: Wentworth
Intergovernmental Relations
3/24/2003
As Filed


DIGEST AND PURPOSE 

Current law prohibits a metropolitan transit authorities (MTA) from
collecting a sales tax that includes telecommunications services unless it
is approved by the majority of the members of the governing body of each
municipality within the MTA service area.  As proposed, S.B. 1705
restructures the approval process for MTA repeal of the local sales and
use tax exemption for telecommunications services. 

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 322.109(d), Tax Code, to prohibit the governing
board of a taxing entity created under Chapter 451, Transportation Code,
from repealing the application of the exemption provided by Subsection (a)
unless the repeal is first approved by a majority vote of a committee
created under Section 451.061(d), Transportation Code. 
 
SECTION 2.  Effective date:  upon passage or September 1, 2003.