BILL ANALYSIS

C.S.H.B. 2338

By: Noble

Ways & Means

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Concerns have been raised about all of the detailed factors that must be considered in determining whether a religious organization qualifies for a tax exemption on the sale, rental, or use of certain motor vehicles used for religious purposes. C.S.H.B. 2338 seeks to remove certain of those factors in an effort to simplify the determinations.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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.

ANALYSIS

C.S.H.B. 2338 amends the Tax Code to change what constitutes a motor vehicle used for religious purposes for the purpose of the taxes imposed on the sale, use, or rental of a motor vehicle and certain exemptions from those taxes by removing the following as requisite conditions for a qualifying motor vehicle:

· the vehicle is a trailer or is designed to carry more than six passengers;

· the vehicle is sold to, rented to, or used by a church or religious society; and

· the vehicle is not registered as a passenger vehicle.   

EFFECTIVE DATE

September 1, 2019.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.H.B. 2338 may differ from the original in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute does not include a provision making the use of an otherwise eligible motor vehicle primarily for the personal or official needs or duties of a person other than a minister ineligible to be considered use for religious purposes.