S.B. 510 78(R) BILL ANALYSIS S.B. 510 By: Staples Local Government Ways and Means Committee Report (Unamended) BACKGROUND AND PURPOSE During the 77th Legislative Session, the legislature created an exemption for travel trailers from ad valorem taxes except at the school district level. Upon adoption of the constitutional amendment in November 2001, it became apparent that what was thought to be an exemption was actually adding individuals to the tax roles. S.B. 510 repeals what was passed during the 77th Session and also authorizes the legislature to exempt from ad valorem taxation certain travel trailers not held or used for the production of income, if the accompanying constitutional amendment is approved by voters. 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. Amends Section 11.14(a), Tax Code, to provide that this subsection does not exempt from taxation a structure that a person owns which is substantially affixed to real estate and is used or occupied as a residential dwelling. Deletes language which provides that a travel trailer is not exempt from taxation. SECTION 2. Repealer: Section 11.142, Tax Code (Travel Trailers). SECTION 3. Effective date: upon passage or September 1, 2003. Makes application of this Act retroactive to taxes imposed for the tax year 2002 and thereafter. EFFECTIVE DATE Upon passage or September 1, 2003.