SRC-EPT H.B. 1444 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1444
78R5074 JD-DBy: Krusee (Brimer)
Finance
5/22/2003
Engrossed


DIGEST AND PURPOSE 

During the 77th Legislative Session, S.B. 248, which eliminated ad valorem
taxes for vehicles leased primarily for personal use, passed the
legislature.  Prior to that legislation, under the Texas Tax Code, all
leased vehicles were subject to those taxes.  That law was originally
intended  to apply to a business leasing fleets of vehicles.  Many leases
today are for individuals interested in driving a vehicle for a lower
price.  However, when S.B. 248 passed, there was a provision included
which sunsets the law if not continued by the current legislature.  

H.B. 1444 repeals Section 11.252 (g) of the Tax Code which sunsets the
current exemption of ad valorem taxes on certain leased vehicles and
repeals a municipality's option to be exempted from Section 11.252, Tax
Code.  


RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Repealer:  11.252(f), Tax Code (Motor Vehicles Leased for
Personal Use). 

SECTION 2.  Repealer:  11.252(g), Tax Code (Motor Vehicles Leased for
Personal Use). 

SECTION 3.(a)  Effective date:  upon passage or September 1, 2003, except
as provided by Subsection (b). 

  (b)  Provides that Section 1 of this Act takes effect January 1, 2004.