LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 28, 1995



 TO:     Honorable Senator John T. Montford,    IN RE:  House BillNo. 2624,
         Chair                                                as engrossed
         Committee on Finance                           By: Craddick
         Senate
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2624 (Relating to the appraisal and ad valorem taxation of
certain types of personal property; providing penalties.) this
office has determined the following:

The bill would amend language in Sections 23.12 (f), 23.12A and
23.12B, Tax Code, to make the following changes in the appraisal
and taxation of motor vehicle inventory:

Amends the definitions in Section 23.12A to define "dealer,"
"fleet transaction," "motor Vehicle," "sales price," and other
terms to conform to proposed changes in motor vehicle inventory
appraisal and tax collection practices.  All trucks would be
placed under this system and trailers would be removed;

Removes the current distinctions between "special inventory,"
"applicable inventory," and "excluded inventory," and replaces
theses categories of property with a new category of "dealer's
motor vehicle inventory";

Removes wholesale dealers and motor vehicle manufactures from
appraisal and taxation under this system;

Vehicles sold more than once during the tax year by the same
dealer would be subject to a single tax prepayment;

Remove requirement that an owner be in business on January  1 of
the tax year to be subject to the bill's provisions.    




 No fiscal implication to the State is anticipated except for the
impact of changes in school district property values.  Changes in
school district property wealth could have an impact on state
funding for public education, which cannot be determined.

The Comptroller's office does not maintain data on the quantity
or value of property that would qualify as "motor vehicle
inventory".  The potential loss or gain to local taxing units
cannot be determined.

    

    







Source:   LBB Staff: JK, BR, DF