LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

March 31, 2009

TO:	Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB2071 by Oliveira (Relating to the reporting of certain inventories for ad valorem tax purposes; providing penalties.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend Chapter 23 of the Tax Code, with regard to the reporting of motor vehicle, heavy equipment, vessels and outboard motor, and manufactured housing inventory, to provide that a failure to timely file an inventory declaration form would result in a penalty. Current law provides for the penalty only for failure to file the report.

The bill would require dealers to submit the required inventory declaration form by the 10th day of each month, even though no inventory was sold in the preceding month, and require the dealers to indicate on the form that no inventory was sold.

The bill would affect the reporting of certain inventories and may increase inventory reporting compliance or fines paid by inventory owners for lack of compliance. The bill would not have a significant fiscal effect on the state or local taxing units.

The bill would take effect September 1, 2009.

Local Government Impact

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

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JOB, MN, SD, SJS