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


Senate Research CenterC.S.S.B. 1705
By: Wentworth
Intergovernmental Relations
3/26/2003
Committee Report (Substituted)


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.  C.S.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, Tax Code, by amending Subsection (d),
adding Subsection (e), and relettering existing Subsection (e), as
follows:  

(d)  Prohibits 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 of the members of the governing body of each municipality
that created the taxing entity, except as authorized by Subsection (e). 

(e)  Prohibits the governing board of a taxing entity created before 1980
in which the principal municipality has a population of less than 1.2
million 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.  Requires
a restatement of the exemption to be approved in the same manner. 

 (f)  Redesignated from existing Subsection (e).
 
SECTION 2.  Effective date:  upon passage or September 1, 2003.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.  Differs from the original proposed Section 322.109 by
replacing existing text of the Tax Code and adding an exception authorized
by Subsection (e). 

Differs from the original proposed Section 322.109 by proposing a new
Subsection (e) to prohibit the governing board of a taxing entity from
repealing certain exemptions. 

Differs from the original proposed Section 322.109 by redesignating
existing Subsection (e) as Subsection (f).