SRC-AXB, DBM H.B. 3197 76(R)BILL ANALYSIS


Senate Research CenterH.B. 3197
By: Ramsay (Bernsen)
Finance
5/13/1999
Committee Report (Amended)


DIGEST 

The 75th Texas Legislature passed legislation which implemented a new
system of valuing retail manufactured housing inventories.  This
legislation defined "manufactured home" and "mobile home" as those terms
are defined in Article 5221f, V.T.C.S., as a HUD-code manufactured home or
a mobile home.  Since the effective date of that legislation, questions
have arisen regarding the ad valorem taxation of other items that are often
included with the sale of a manufactured home. H.B. 3197 would set forth
provisions for the appraisal and ad valorem taxation of retail manufactured
housing inventory. 

PURPOSE

As proposed, H.B. 3197 sets forth provisions for the appraisal and ad
valorem taxation of retail manufactured housing 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 Sections 23.127(a), (e), and (h), to define "HUD-code
manufactured home," "manufactured housing," "mobile home,"; to redefine
"retail manufactured housing inventory," "retailer," "retailer-financed
sale," "sales price," "subsequent sale," and "total annual sales"; and to
delete the existing definition of "manufactured home."  Provides that a
retailer is presumed to be an owner of a retail manufactured housing
inventory on January 1 if, in the 12-month period ending on December 31 of
the immediately preceding year, the retailer sold a unit of manufactured
housing to a person other than a retailer.  Provides that the presumption
in this section is not rebutted by the fact that a retailer does not have
any units of manufactured housing physically on hand for sale from the
retail manufactured housing inventory on January 1.  Makes conforming
changes. 

SECTION 2.  Amends Sections 23.128(a), (b), (e), (f), and (g), Tax Code, to
provide that the unit property tax of each unit of manufactured housing is
determined by multiplying the sales price of the unit, rather than
manufactured home, by the unit property tax factor.  Deletes the definition
of "manufactured home."  Makes conforming changes. 

SECTION 3.  Amends Sections 23.128(h) and (i), Tax Code, to prohibit the
assessment of penalties or interest against an owner for certain property
taxes which are not delivered or are deficient. 

SECTION 4.Effective date for Sections 1 and 2 of this Act:  January 1,
2000.  Makes application of these sections prospective. 
  Effective date for Section 3 of this Act:  September 1, 1999.

SECTION 5.Emergency clause.