BILL ANALYSIS H.B. 399 By: Uher (Patterson) Finance 05-22-95 Senate Committee Report (Unamended) BACKGROUND Currently, many of the smaller commercial fishing operations are family owned and operated, using only one boat that is typically less than 100 feet in length and is taxed as real and tangible personal property. With the inconsistent nature of commercial fishing, the taxes imposed on these boats and related equipment cause a burden on the operation of these families' small business. PURPOSE As proposed, H.B. 399 authorizes a political subdivision to exempt commercial fishing boats not exceeding 100 feet in length and related equipment from ad valorem taxes. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 11B, Tax Code, by adding Section 11.162, as follows: Sec. 11.162. COMMERCIAL FISHING EQUIPMENT. (a) Authorizes the governing body of a taxing unit to exempt a person from taxation of each boat the person owns and uses primarily in the taking of fish, shrimp, shellfish, and other marine life for resale as food for human consumption. (b) Provides that the exemption provided by this section also applies to the nets and other equipment primarily used in connection with the use of the boat for the exempt purposes provided by Subsection (a). (c) Defines "boat." SECTION 2. Amends Section 11.43(c), Tax Code, to make a conforming change. SECTION 3. Effective date: January 1, 1996, but only if the constitutional amendment proposed by the 74th Legislature, Regular Session, 1995, authorizing the governing body of a political subdivision to exempt from ad valorem taxation boats and other equipment used primarily in the commercial taking of fish, shrimp, shellfish, and other marine life is approved by the voters. Provides that this Act has no effect if the proposed amendment is not approved by the voters. SECTION 4. Emergency clause.