HBA-KDB H.B. 1100 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1100 By: Lewis, Ron Ways & Means 2/26/2001 Introduced BACKGROUND AND PURPOSE Under current law, property that is in this state on a temporary basis is not subject to ad valorem taxation. Vessels and other watercraft that are constructed in Texas but used outside of the state may be subject to ad valorem taxation even though such property is in this state on a temporary basis. Such a property tax may convince shipbuilders to construct their vessels elsewhere, which could potentially place jobs associated with shipbuilding at risk. House Bill 1100 provides that vessels and other watercraft that are constructed in but used outside of this state are not subject to ad valorem taxation. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1100 amends the Tax Code to provide that a commercially-used or noncommercially-used vessel or other watercraft that is used outside of this state and is in this state solely to be constructed or converted, in addition to being repaired, stored, or inspected is presumed to be interstate, international, or foreign commerce and not located in this state for longer than a temporary period and is not taxed as real personal property. Tangible personal property in this state that the owner intends to incorporate in and that is suitable to be incorporated in a vessel or watercraft that is to be converted, repaired stored, inspected or under construction, is presumed to be in interstate, international, or foreign commerce and not located in this state for longer than a temporary period and is not taxed as tangible personal property due to its temporary status. EFFECTIVE DATE January 1, 2002.