C.S.H.B. 40 78(R)    BILL ANALYSIS


C.S.H.B. 40
By: Chisum
Local Government Ways and Means
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Last session the legislature passed and sent to the voters a
constitutional amendment that placed a school property tax on all travel
trailers.  The intent of the legislation was confusing.  The appraisal
districts were divided on what to do about the issue and some appraised
and levied the tax while others did not.  CSHB 40 will restore the law to
the way it was before last session's changes. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 


ANALYSIS
SECTION 1.

The Tax Code is amended to Stipulate that a person is entitled to an
exemption from taxation of all tangible personal property, other than
manufactured homes, that the person owns and that is not held or used for
production income.  The reference to the subsection not exempting a travel
trailer is deleted. 

SECTION 2.

Repeals Section 11.142, Tax Code.



EFFECTIVE DATE

This Act takes effect January 1, 2004, and applies only to taxes imposed
for a tax year that begins on or after that date, but only if the
constitutional amendment proposed by the 78th Legislature, Regular
Session, 2003, authorizing the legislature to exempt from ad valorem
taxation certain travel trailers not held or used for the production of
income is approved by the voters.  If that amendment is not approved by
the voters, this Act has no effect. 




 COMPARISON OF ORIGINAL TO SUBSTITUTE
House Bill 40 stipulated that travel trailers would be exempt from
taxation.  CSHB 40 stipulates that a person is entitled to an exemption
from taxation of all tangible personal property, other than manufactured
homes.