S.B. 658 78(R)    BILL ANALYSIS


S.B. 658
By: Brimer
Local Government Ways and Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

During the 77th Legislature, S.B. 248 eliminated ad valorem taxes for
vehicles leased primarily for personal use. The exemption does not apply
in a municipality if the municipality's governing body adopted an
ordinance before January 1, 2002, providing for the continued taxation of
leased motor vehicles. However, the legislation included a provision that
if the exemption was not continued by the legislature, it would expire
December 31, 2003. As proposed, S.B. 658 would make permanent the
exemption from ad valorem taxes on motor vehicles leased for personal use. 

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

SECTION 2. Effective date: upon passage or September 1, 2003.


EFFECTIVE DATE

Upon passage or September 1, 2003.