HBA-JLV H.B. 3165 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3165 By: Chavez Ways & Means 4/1/2001 Introduced BACKGROUND AND PURPOSE Currently, child-care facilities are not exempt from ad valorem taxation. Due to increasing costs and high property taxes, many child-care facilities are facing difficulties in meeting financial obligations and are having to go out of business. House Bill 3165 provides a tax exemption of the real and tangible personal property of certain child-care facilities. 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 3165 amends the Tax Code to provide that a child-care facility that qualifies as a day-care center or a group day-care home is entitled to an exemption from taxation of the real and tangible personal property the child-care facility owns that is used exclusively and is reasonably necessary for providing care for children attending the facility. EFFECTIVE DATE January 1, 2002.