HBA-JRA H.B. 3197 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3197 By: Ramsay Ways & Means 4/7/1999 Introduced BACKGROUND AND PURPOSE The 75th Texas Legislature passed legislation which implemented a new system for valuing retail manufactured housing inventories. This legislation defined "manufactured home" and "mobile home" as those terms are defined Article 5221f, V.T.C.S., which defines them as a HUD-code manufactured home or a mobile home. Since the effective date of this legislation, questions regarding the ad valorem taxation of other items that are often included with the sale of a manufactured home. H.B. 3197 defines "HUD-code manufactured home" and "mobile home" and redefines "manufactured housing" making the tax applicable to a manufactured or mobil home as it would customarily be held in inventory by a manufactured housing retailer in the normal course of business. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 23.127(a)(5), Tax Code, as follows: (5)(A) Deletes the definitions of "manufactured home" and "manufactured housing." Defines "HUD-code manufactured home" as a structure constructed on or after June 15, 1976, according to the rules of the United States Department of Housing and Urban Development, that is transportable in one or more sections, of a certain size, and built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities as the structure would customarily be held by a retailer in the normal course of business in a retail manufactured housing inventory. (B) Defines "mobile home" as a structure that was constructed on or after June 15, 1976, that is transportable in one or more sections, of a certain size, and built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities as the structure would customarily be held by a retailer in the normal course of business in a retail manufactured housing inventory. (C) Redefines "manufactured housing" as a generic reference to a HUD-code manufactured home, mobile home, or both, as those terms are defined in this section. SECTION 2. Effective date: January 1, 2000. Makes application of this Act prospective to a tax year that begins on or after that date. SECTION 3. Emergency clause.