LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 24, 1995 TO: Honorable Tom Craddick, Chair IN RE: Committee Substitute Committee on Ways & Means for House House of Representatives Bill No. 2624 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.) 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 ; Comptroller of Public Accounts,