HBA-AMW H.B. 2551 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2551
By: Uher
Ways & Means
3/30/2001
Introduced



BACKGROUND AND PURPOSE 

The financial burden of ad valorem taxation of boats used in the shrimping
industry presents a strain on many shrimpers.  Many in the industry
register boats and other equipment in neighboring coastal states that offer
exemptions instead of registering in their home port in Texas.  The
registration of shrimping boats and other equipment in neighboring states
results in a loss of revenue for Texas.  Currently, the Texas Constitution
exempts from ad valorem taxation equipment used by farmers and ranchers but
does not exempt boats and other equipment used by the shrimping industry.
House Bill 2551 exempts from ad valorem taxation boats or other equipment
used primarily in the commercial taking or production of fish, shrimp,
shellfish, or other marine life to sell as food for human consumption.  

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 2551 amends the Tax Code to provide that a person is entitled to
an exemption from ad valorem taxation of each boat that does not exceed 100
feet in length that the person owns and uses primarily in the taking or
production of fish, shrimp, shellfish, or other marine life to sell as food
for human consumption as well as the nets and other equipment primarily
used in connection with the use of the boat.   

The bill adds the exemption for boats and provides that other equipment to
the exemptions that, once allowed, need not be claimed in subsequent years
and provides that, unless a person required to file for an exemption in a
given year fails to file timely a completed application form, the exemption
applies to the property until the property changes ownership or the
person's qualification for the exemption changes.  The bill also provides
that the chief appraiser is authorized to require a person allowed one of
the exemptions for boats and other equipment in a prior year to file a new
application to confirm the person's current qualification for the exemption
by delivering a written notice to the person that a new application is
required, accompanied by an appropriate application form. 

EFFECTIVE DATE

January 1, 2002, if the constitutional amendment proposed by the 77th
Legislature, Regular Session, 2001, to exempt from ad valorem taxation
boats and other equipment used primarily in the commercial taking or
production of fish, shrimp, shellfish, and other marine life as food for
human consumption is approved by the voters.