BILL ANALYSIS

Senate Research Center	H.B. 2338
86R18940 SRA-F	By: Noble (Hughes)
	Finance
	4/16/2019
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Currently, certain vehicle are exempt from the motor vehicle sales and use tax for religious organizations when used for religious purposes. To address concerns of the complexity of determining what vehicles are eligible to be exempt from the tax, H.B. 2338 changes what constitutes a motor vehicle used for religious purposes and removes some redundant language in the definition in an effort to simplify the determinations.

H.B. 2338 amends current law relating to the exemption from the taxes imposed on the sale, use, or rental of a motor vehicle for certain motor vehicles used for religious purposes.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 152.001(12), Tax Code, to redefine "motor vehicle used for religious purposes" to mean a motor vehicle that is used primarily by a church or religious society and not used primarily for the personal or official needs or duties of a minister and to make nonsubstantive changes.

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: September 1, 2019.