Text: HSB00650                          Text: HSB00652
Text: HSB00600 - HSB00699               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index



House Study Bill 651

Bill Text

PAG LIN
  1  1    Section 1.  Section 422.45, Code Supplement 1999, is
  1  2 amended by adding the following new subsection:
  1  3    NEW SUBSECTION.  57.  a.  The gross receipts from the sale
  1  4 of an article of clothing or footwear designed to be worn on
  1  5 or about the human body if all of the following apply:
  1  6    (1)  The sales price of the article is less than one
  1  7 hundred dollars.
  1  8    (2)  The sale takes place during a period beginning at
  1  9 12:01 a.m. on the first Friday in August and ending at
  1 10 midnight on the following Sunday.
  1 11    b.  This subsection does not apply to any of the following:
  1 12    (1)  Special clothing or footwear that is primarily
  1 13 designed for athletic activity or protective use and that is
  1 14 not normally worn except when used for the athletic activity
  1 15 or protective use for which it is designed.
  1 16    (2)  Accessories, including jewelry, handbags, luggage,
  1 17 umbrellas, wallets, watches, and similar items carried on or
  1 18 about the human body, without regard to whether worn on the
  1 19 body in a manner characteristic of clothing.
  1 20    (3)  The rental of clothing or footwear.
  1 21    c.  The board of supervisors of a county that has imposed
  1 22 or will impose a local sales and services tax under chapter
  1 23 422B or 422E may nullify the application of the exemption in
  1 24 this subsection to its local sales and services tax at any
  1 25 time prior to the exemption becoming applicable in a calendar
  1 26 year as follows:
  1 27    (1)  A public hearing on the question of the nullification
  1 28 of the application of the exemption in this subsection is held
  1 29 prior to the vote of the board of supervisors.
  1 30    (2)  An ordinance to nullify the application of the
  1 31 exemption in this subsection is enacted by a majority vote of
  1 32 the members of the board of supervisors.
  1 33    (3)  The public hearing and the vote on the ordinance as
  1 34 required in subparagraphs (1) and (2) are held not later than
  1 35 July 1.
  2  1    (4)  An ordinance to nullify the application of the
  2  2 exemption in this subsection once enacted continues to apply
  2  3 until the ordinance is repealed in a manner similar to the
  2  4 enactment of the ordinance.
  2  5    Notice of the enactment or repeal of an ordinance pursuant
  2  6 to this paragraph shall be sent to the department of revenue
  2  7 and finance no later than July 10 of the calendar year in
  2  8 which it first applies.
  2  9    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of
  2 10 immediate importance, takes effect upon enactment.  
  2 11                           EXPLANATION 
  2 12    This bill provides for a sales and use tax exemption for
  2 13 clothing and footwear purchased on the first Friday, Saturday,
  2 14 and Sunday of August in each year.  The exemption only applies
  2 15 if the article of clothing or footwear purchased costs less
  2 16 than $100.  The exemption does not apply to special clothing
  2 17 or footwear that is primarily designed for athletic or
  2 18 protective use, to accessories such as jewelry, watches,
  2 19 handbags, and wallets, or to the rental of clothing or
  2 20 footwear.
  2 21    The exemption would apply to local sales and services taxes
  2 22 unless the board of supervisors enacts an ordinance that
  2 23 specifies the exemption is not applicable to its local sales
  2 24 and services tax.  A public hearing on this ordinance must be
  2 25 held prior to the taking of the vote.
  2 26    The bill takes effect upon enactment.  
  2 27 LSB 5726HC 78
  2 28 mg/as/5
     

Text: HSB00650                          Text: HSB00652
Text: HSB00600 - HSB00699               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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