HB 687 -- SALES TAX ON CLOTHING

SPONSOR:  Murray

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 14 to 2.

This bill exempts from state and local sales and use tax the
sale of certain clothing when sold between the hours of 12:01
a.m., August 14, 2000, and midnight, August 20, 2000.  Each
individual item must sell for $50 or less to qualify for the
exemption.

FISCAL NOTE:  Estimated Net Decrease to General Revenue Fund of
$50,550 for FY 2000, $3,549,845 in FY 2001, and $0 in FY 2002.
Loss to School District Trust Fund of $1,183,282 in FY 2001.
Loss to Conservation Fund of $147,910 in FY 2001.  Loss to Parks
and Soil Funds of $118,328 in FY 2001.

PROPONENTS:  Supporters say that this bill will give a tax break
to persons buying clothes for school children prior to the
school year.

Testifying for the bill was Representative Murray.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Assistant Director of Research

HB 687 -- Sales Tax on Clothes

Co-Sponsors:  Murray, Williams (121), Scheve, Foley, Troupe,
George, McKenna

This bill exempts from state and local sales and use tax the
sale of certain clothing when sold between the hours of 12:01
a.m., August 14, 2000, and midnight, August 20, 2000.  Each
individual item must sell for $50 or less to qualify for the
exemption.