HBA-JRA C.S.H.B. 3197 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3197 By: Ramsay Ways & Means 4/18/1999 Committee Report (Substituted) 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 that legislation, questions regarding the ad valorem taxation of other items that are often included with the sale of a manufactured home. C.S.H.B. 3197 defines "HUD-code manufactured home" and "mobile home" and redefines "manufactured housing" making the tax applicable to a manufactured or mobile 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 Sections 23.127(a), (e), and (h), Tax Code, as follows: (a) Deletes the definition of "manufactured home." Defines "HUD-code manufactured home" as it is defined by Section 3, Article 5221f, V.T.C.S. (Texas Manufactured Housing Standards Act). Redefines "manufactured housing" as a HUD-manufactured home or mobile home as it would customarily be held by a retailer in the normal course of business in a retail manufactured housing inventory. Defines "mobile home" as it is defined by Section 3, Article 5221f, V.T.C.S. (Texas Manufactured Housing Standards Act). Makes conforming changes. (e) Makes conforming changes. (h) Makes conforming changes. SECTION 2. Amends Sections 23.128(a), (b), (e), (f), and (g), Tax Code, to make conforming changes. SECTION 3. Effective date: January 1, 2000. Makes application of this Act prospective to a tax year that begins on or after that date. SECTION 4. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute modifies the original in SECTION 1 by defining "HUD-code manufactured home" as it is defined by Section 3, Article 5221f, V.T.C.S. (Texas Manufactured Housing Standards Act), rather than 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. The substitute redefines "manufactured housing" as a HUD-manufactured home or mobile home as it would customarily be held by a retailer in the normal course of business in a retail manufactured housing inventory, rather than as a generic reference to a HUD-code manufactured home, mobile home, or both, as those terms are defined in this section. The substitute redefines "mobile home" as it is defined by Section 3, Article 5221f, V.T.C.S. (Texas Manufactured Housing Standards Act), rather than 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. The substitute adds a new SECTION 2, which amends Sections 23.128(a), (b), (e), (f), and (g), Tax Code, to make conforming changes. The substitute redesignates SECTIONS 2 (effective date) and 3 (emergency clause) of the original to SECTIONS 3 and 4.