Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB1835 by Menéndez (Relating to an exemption from the motor vehicle use tax for motor vehicles brought into this state by certain current or former military personnel.), As Introduced
There could be an indeterminate amount of revenue loss depending on the number of military members eligible for the motor vehicle use tax exclusion.
The bill would amend Section 152.022 of the Tax Code, regarding motor vehicle taxes, to exclude current or former members of the U.S. military from paying motor vehicle use tax on a vehicle they purchased at retail outside this state while serving on active duty outside this state.
The bill would apply to any service member who purchased a car outside of Texas while on active duty and did not pay sales tax at the time of purchase. The number of military members eligible for this exemption is unknown.
The bill would take effect September 1, 2015.
Local Government Impact
No fiscal implication to units of local government is anticipated.