78R90 JD-D

By:  Chisum                                                       H.B. No. 40 



A BILL TO BE ENTITLED

AN ACT

relating to the exemption of travel trailers from ad valorem 
taxation.      
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 11.14(a), Tax Code, is amended to read as 
follows:       
	(a)  Except as otherwise provided by this subsection, 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 of income.  This 
subsection does not apply to [exempt from taxation] a travel 
trailer, as defined by Section 11.142, that a person owns.
	SECTION 2.  Section 11.142(b), Tax Code, is amended to read 
as follows:      
	(b)  A [The governing body of a taxing unit, other than a 
school district, by official action of the body adopted in the 
manner required by law for official action may exempt from taxation 
a] travel trailer that a person owns is exempt from taxation, 
regardless of whether the travel trailer is real or personal 
property, if:
		(1)  on January 1 of the applicable tax year, the travel 
trailer is registered in this state in compliance with Chapter 502, 
Transportation Code; and
		(2)  the travel trailer is not held or used for the 
production of income.   
	SECTION 3.  Section 11.43(c), Tax Code, is amended to read as 
follows:       
	(c)  An exemption provided by Section 11.13, 11.142, 11.17, 
11.18, 11.182, 11.183, 11.19, 11.20, 11.21, 11.22, 11.23(j), 11.29, 
11.30, or 11.31, once allowed, need not be claimed in subsequent 
years, and except as otherwise provided by Subsection (e), the 
exemption applies to the property until it changes ownership or the 
person's qualification for the exemption changes.  However, the 
chief appraiser may require a person allowed one of the exemptions 
in a prior year to file a new application to confirm the person's 
current qualification for the exemption by delivering a written 
notice that a new application is required, accompanied by an 
appropriate application form, to the person previously allowed the 
exemption.
	SECTION 4.  This Act takes effect January 1, 2004, and 
applies only to ad valorem 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 
travel trailers that are registered in this state and are 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.