BILL ANALYSIS

H.B. 300

By: Howard

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Most products are currently subject to a minimum 6.25 percent state sales tax. In many areas of Texas, consumers pay an additional two percent local sales and use tax on most products they purchase. In light of the fact that approximately 15 percent of Texans live below the poverty level and an additional 20 percent live just above the poverty level, increasing the price of basic family care items by more than eight percent by subjecting these items to sales and use taxes further hinders the economic self-sufficiency and well-being of millions of Texans. H.B. 300 seeks to alleviate this additional financial burden by adding family care items like children's diapers, baby wipes, bottles, menstrual products, maternity clothing, and breast milk pumping products to the list of tax-exempt items.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 300 amends the Tax Code to exempt the following family care items from the sales and use tax:

· a children's diaper;

· a baby wipe;

· a baby bottle;

· a feminine hygiene product;

· maternity clothing; and

· a breast milk pumping product.

The bill expressly does not affect tax liability accruing before the bill's effective date.

EFFECTIVE DATE

September 1, 2023.