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


Office of House Bill AnalysisC.S.H.B. 2076
By: Flores
Ways & Means
4/30/2001
Committee Report (Substituted)



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. C.S.H.B. 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

C.S.H.B. 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 exemption from
ad valorem taxation of travel trailers that are not held or used for the
production of income is approved by the voters. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2076 differs from the original bill by modifying the definition of
"travel trailer" to mean  a house trailer-type vehicle or a camper trailer
that is less than 400 square feet in area, rather than  less than 8 feet in
width or 40 feet in length, exclusive of any hitch installed on the
vehicle.  The substitute restores the current definition of "manufactured
home."  The substitute authorizes the governing body of a taxing unit,
other than a school district, to exempt from taxation a travel trailer if
the travel trailer meets certain requirements. The original bill did not
authorize the taxation of a travel trailer not held or used for the
production of income.