LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

May 20, 2005

TO:	Honorable Steve Ogden, Chair, Senate Committee on Finance
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	HB809 by Hilderbran (Relating to excepting certain motor vehicles owned by an individual and used for the production of income from required rendition for ad valorem tax purposes.), Committee Report 2nd House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would allow a waiver of personal property rendition requirements to certain property owners. An individual who owns and is the primary operator of one or more passenger cars or light trucks in the course of the individual's occupation or profession and also operates those vehicles for personal activities that do not involve the production of income would not have to render the vehicles for taxation. 

Passage of the bill could result in appraisal districts receiving less information concerning business personal property owned by small business owners. Although the bill would not exempt any currently taxable business property from property taxation, the sanctioned failure of some small business owners to file a rendition statement with the appraisal district could reduce taxable property values.  However, the reduction in property values is not anticipated to be significant.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JOB, SD, WP, DLBe