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.