BILL ANALYSIS H.B. 467 By: Kuempel May 4, 1995 Committee Report (Unamended) BACKGROUND Currently, the use of electricity, natural gas and other fuels used or consumed in the process of repairing, maintaining or restoring rolling stock or locomotives is taxed under Chapter 151, Tax Code. Since neighboring states do not tax these items, many industries may look outside Texas for their repair work. PURPOSE This bill exempts electricity, natural gas and other fuels used in the repair, maintenance or restoration of rolling stock from sales, use and excise taxes. 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. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 151.331 (Rolling Stock; Train Fuel and Supplies), Tax Code, by exempting electricity, natural gas and other fuels used predominately in the repair, maintenance or restoration of rolling stock from sales, use and excise taxes. SECTION 2. Effective Date: October 1, 1995, and provides that this Act does not affect tax liability accruing before the effective date. SECTION 3. Emergency Clause. SUMMARY OF COMMITTEE ACTION Public notice was posted in accordance with the rules, and a public hearing was held on May 2, 1995. Representative Kuempel explained the bill. By a record vote of 6 ayes, 0 nays, 0 present not voting and 5 absent, the committee voted to report H.B. 467 to the House without amendment with the recommendation that it do pass. Testimony received in favor of the bill: Myron Harkins, representing RESCAR Inc. Durwood Hill, representing himself Charles Fox, representing himself