LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 30, 1997
         
         
      TO: Honorable Bill Ratliff, Chair            IN RE:  House Bill No. 2116, 
As Engrossed
          Committee on Finance                              By: Craddick
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2116 ( relating 
to the ad valorem taxation of certain inventories) this office 
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2116-As Engrossed
         
No fiscal implication to the State is anticipated.
         

         
 
The bill would remove a class of personal property from the 
definition of motor vehicle.  This type of inventory (equipment 
or machinery designed and intended to be used for a specific 
work-related purpose other than the transporting of a person 
or property) would be appraised and taxed under Sec. 23.12(a) 
of the Tax Code as inventory other than motor vehicle and vessel 
and outboard motor inventory.
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,RR ,BR