SRC-AAA H.B. 2116 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2116
By: Craddick (Brown)
Finance
4-30-97
Engrossed


DIGEST 

In the 74th Legislature H.B. 2624 was passed that amended various 
aspects of the appraisal and 
taxation of a dealer's motor vehicle inventories for property tax 
purposes.  Certain aspects of the law 
still need minor changes to conform with current practices and 
changes in other 
laws.  H.B. 2116 amends Sections 23.121 (Dealer's Motor Vehicle 
Inventory; Value) and 23.122 
(Prepayment of Taxes by Certain Taxpayers) of the Tax Code 
relating to the ad valorem appraisal 
and taxation of a dealer's motor vehicle inventory.               
                                         
                                                                  
                                                                  
       
PURPOSE

As proposed, H.B. 2116 amends Sections 23.121 and 23.122, Tax 
Code, relating to the ad valorem 
appraisal and taxation of a dealer's motor vehicle inventory.     
                                                   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a 
state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 23.121(a), Tax Code, to redefine 
"dealer," "fleet transaction," "motor 
vehicle," and "towable recreational vehicle."

SECTION 2. Amends Section 23.121(h), Tax Code, to set forth 
requirements of a report to be sent 
by the chief appraiser to the Texas Department of Transportation.

SECTION 3. Amends Section 23.121(k), Tax Code, to require the 
chief appraiser or a person 
designated by the chief appraiser to collect certain penalties. 
Makes a conforming change. 

SECTION 4. Amends Section 23.122(f), Tax Code, to authorize a 
chief appraiser or collector to 
examine documents as required, rather than provided,  by this 
subsection. 

SECTION 5. Amends Section 23.122(g), Tax Code, to delete text 
regarding an exception to this 
subsection. Deletes Subdivision (1).

SECTION 6. Amends Section 23.122(l), Tax Code, to require certain 
owners to notify the chief 
appraiser and the collector that the purchaser has agreed to pay 
certain taxes owed by the selling 
dealer.

SECTION 7. Amends Section 23.122(n), Tax Code, to provide that a 
tax lien attaches to a dealer's, 
rather than an owner's, personal property. Makes conforming 
changes. 

SECTION 8. Emergency clause.