HBA-EDN H.B. 2866 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2866 By: Sadler Ways & Means 4/19/2001 Introduced BACKGROUND AND PURPOSE Under current law, boats and motors purchased exclusively for rental to others are not exempt from the sales and use tax. Consequently, such boats and motors are subject to the sales and use tax when purchased and again when rented. House Bill 2866 exempts a purchaser of a boat or motor from the sales and use tax if the purchaser uses that boat or motor exclusively for rental to others. 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 2866 amends the Tax Code to exempt a purchaser of a boat or boat motor from the sales and use tax imposed on a boat or boat motor if the boat or boat motor is used exclusively by the purchaser for rental to others. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.