HBA-KDB H.B. 2076 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2076
By: Flores
Ways & Means
7/19/2001
Enrolled



BACKGROUND AND PURPOSE 

A travel trailer is a house trailer-type vehicle or a camper trailer,
regardless of whether the vehicle is affixed to real property, that is less
than 400 square feet and that is designed primarily for use as temporary
living quarters in connection with recreational, camping, travel, or
seasonal use and not as a permanent dwelling. Travel trailers are subject
to a sales tax, but were not subject to real property taxes until two
recent opinions (JC-0150 and JC-0282) by the Attorney General of Texas
regarding ad valorem taxation on travel trailers.  There is concern that
this may constitute double taxation on travel trailers.  House Bill 2076
provides that travel trailers that meet certain requirements are exempt
from ad valorem taxation. 

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. 

ANALYSIS

House Bill 2076 amends the Tax Code to authorize the governing body of a
taxing unit, other than a school district, by official action of the body
adopted in the manner required by law for official action to exempt from
taxation a travel trailer that a person owns, regardless of whether the
travel trailer is real or personal property, if on January 1 of the
applicable tax year, the travel trailer is registered in this state and the
travel trailer is not held or used for the production of income. 

EFFECTIVE DATE

January 1, 2002, if the constitutional amendment relating to the exemption
from ad valorem taxation of travel trailers that are not held or used for
the production of income is approved by the voters.