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.