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