| TO: | Honorable Jim Keffer, Chair, House Committee on Ways & Means |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB1342 by Hochberg (Relating to the imposition of the sales and use tax on certain sales made by individuals.), Committee Report 1st House, Substituted |
The bill would amend Chapter 151 of the Tax Code to exclude the sales of taxable items if the only sales made by the individual were sales of property that was originally bought for the individual's personal use, the individual was not required to have a sales tax permit, the individual did not employ an auctioneer, broker, or factor, other than an on-line auction, to sell the property, and the total receipts from these sales did not exceed $3,000 in a calendar year.
Under current law, occasional sales of property by an individual are not subject to the sales tax. This bill would allow occasional sales of family items, by an individual not holding a sales tax permit. An on-line auction could be utilized in this type of occasional sale.
The bill would take effect July 1, 2005, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2005.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | JOB, SD, WP, SM
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