BILL ANALYSIS

Senate Research Center                                                                                                        S.B. 953

80R6748 CBH-F                                                                                                               By: Brimer

Finance

3/26/2007

As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Current law requires the owners of commercial property that is designated by a city as historic to pay local and state sales tax on the labor services for repairs or renovations.  This legislation address unequal treatment between locally-designated historic properties and nationally-designated historic properties which discourages the owners of property with only local historic designation from pursuing repairs and renovations that would preserve the facility and put it to its highest and best use.

As proposed, S.B. 953 exempts the owners of properties that have local and state historic designations from local sales taxes on labor services for repairs and remodeling, just as owners of property with national designation currently receive.

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 151.0047(a), Tax Code, to redefine "real property repair and remodeling."

SECTION 2.  Makes application of this Act prospective.

SECTION 3.  Effective date: October 1, 2007.