78R1743 JD-D

By:  Flores                                                       H.B. No. 161



A BILL TO BE ENTITLED

AN ACT

relating to the exemption of certain 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 person is entitled to an exemption [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 of a travel trailer that a person 
owns, 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.  This Act takes effect January 1, 2004, and  
applies only to taxes imposed for a tax year beginning on or after 
that date, but only if the constitutional amendment proposed by the  
78th Legislature, Regular Session, 2003, authorizing the 
legislature to exempt certain travel trailers that are registered 
in this state from ad valorem taxation is approved by the voters.  
If that amendment is not approved by the voters, this Act has no 
effect.