BILL ANALYSIS

Senate Research Center	S.B. 1295
86R10761 SMT-D	By: Powell
	Finance
	3/21/2019
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

With the advent of water bottle filling stations, the average consumer is able to access a free and convenient supply of clean drinking water. With these filling stations, consumers also now have the choice to forgo purchasing traditional one-use plastic water bottles, a product that is estimated to set the average family back some $700/year.

S.B. 1295 seeks to reduce the dependency on one-use plastic bottles and save the average Texan the cost of having to purchase said one-use plastic bottles. It will do this by adding water bottle filling stations to a list of water-efficient products that are eligible for tax-exempt purchase during the weekend preceding Memorial Day.

According to Food & Water Watch, a gallon's worth of single-serve bottled water costs the average consumer almost $9.50�nearly 2,000 times the price of tap water. Due to the fact that these stations utilize station-filtered tap water, the consumer is able to save money improving their overall quality of life.

�

In recent years, water bottle filling stations, devices which vary in design and price depending on the make and model, have grown in popularity and in demand across urban and rural areas of Texas alike.

As proposed, S.B. 1295 amends current state law relating to exemptions for water-efficient products by adding water bottle filling stations to the list of products eligible for tax exemption during the weekend preceding Memorial Day.

As proposed, S.B. 1295 amends current law relating to the inclusion of water filling stations in the sales and use tax exemption for water-efficient products.

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 151.3335, Tax Code, as follows:

Sec. 151.3335. WATER-EFFICIENT PRODUCTS. (a) Defines "water filling station" as tangible personal property that dispenses potable water for the purpose of refilling individual water bottles or similar drinking containers. Makes a nonsubstantive change.

(b) Exempts the sale of a water-conserving product, water filling station, or WaterSense product from the taxes imposed by this chapter (Limited Sales, Excise, and Use Tax) if the sale takes place during the period described by Section 151.333(c) (relating to tax exemptions during the weekend Preceding Memorial Day).

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: September 1, 2019.