HBA-JRA H.B. 3246 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3246 By: Allen Ways & Means 4/7/1999 Introduced BACKGROUND AND PURPOSE The purpose of H.B. 3246 is to clarify the process of appraisal of heavy equipment for the purposes of ad valorem taxation. H.B. 3246 provides that heavy equipment that is leased but subject to a purchase option by the lessee is subject to property tax as part of a dealer's inventory. 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 23.1241(a)(2), Tax Code, to provide that the term "dealer's heavy equipment inventory" includes items of heavy equipment that are leased but subject to a purchase option by the lessee. SECTION 2. Amends Section 23.1241(b), Tax Code, to provide that, for the purpose of the computation of property tax, a sale is considered to occur when ownership of an item of heavy equipment is transferred from the dealer to the purchaser. Makes 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.