BILL ANALYSIS |
C.S.H.B. 826 |
By: Harless |
Ways & Means |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Recent legislation set out the method for appraising a heavy equipment dealer's inventory for property tax purposes. Interested parties contend that while the legislation imposed a single appraisal standard and created consistent valuations of a dealer's inventory, it also inadvertently included entities that were not intended to be included under the new structure, such as leasing companies and banks that act as financial institutions. These entities do not maintain locations open to the public in which inventory is available for sale, lease, or rent. C.S.H.B. 826 seeks to clarify which entities are considered heavy equipment dealers for property tax purposes.
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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.
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ANALYSIS
C.S.H.B. 826 amends the Tax Code to specify, for purposes of the property tax appraisal of a heavy equipment dealer's inventory, that the term "dealer" does not include a bank, savings bank, savings and loan association, credit union, or other finance company. The bill specifies that the term, for purposes of taxation of a person's inventory of heavy duty equipment in a tax year, does not include a person who renders the person's inventory of heavy equipment for taxation in that tax year by filing a rendition statement or property report. The bill specifies that for items of heavy equipment that a dealer holds for sale, lease, or rent during a 12-month period to be considered "dealer's heavy equipment inventory" the dealer must so hold the items in Texas.
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EFFECTIVE DATE
January 1, 2014.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 826 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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