LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 21, 1995



 TO:     Honorable Tom Craddick, Chair          IN RE: Committee Substitute
         Committee on Ways & Means                            forHouse Bill
         House of Representatives               No. 2940
         Austin, Texas








FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2940 (Relating to the appraisal and ad valorem taxation of
certain types of personal property.) this office has determined
the following:

The bill would include boat dealers within the provisions of
Chapter 23, Tax Code, providing for inventory appraisal based on
prior year sales.  The bill would specifically refer to "vessel
dealers," and excludes boats (vessels) of more than 65 feet  and
non-powered boats under 14 feet in length from appraisal under
the prior year sales calculation method.  A "vessel dealer" would
mean a person who holds a dealer's and manufacturer's number
issued by the Texas Parks and Wildlife Department.

The bill would also provide a mechanism by which the dealer could
attach a property tax value to each vessel at the time of sale. 
The dealer would accumulate the tax money and remit it monthly to
the county tax assessor-collector who would then be responsible
for the payment of inventory taxes to all local taxing units when
due at year's end.





The fiscal implication to  the State or units of local government
cannot be determined.    




Source:   Comptroller of Public Accounts
          LBB Staff: JK, BR, DF