HBA-EDN H.B. 244 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 244 By: Ellis, Dan Ways & Means 6/14/2001 Enrolled BACKGROUND AND PURPOSE Previous law did not provide for a sales and use tax exemption for a boat or motor that is used by a volunteer fire department or other emergency service organization. Volunteer fire departments in Texas provide a necessary service but receive only nominal compensation and as a result, their capital budgets tend to be minimal. House Bill 244 would provide such a tax exemption if the boat or motor is used exclusively by the department or organization. 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 244 amends the Tax Code to exempt from retail sales and use taxes the sale of a taxable boat or motor to or the use of a taxable boat or motor by a volunteer fire department or other department, company, or association organized for the purpose of answering fire alarms and extinguishing fires or for the purpose of answering fire alarms, extinguishing fires, and providing emergency medical services, the members of which receive no compensation or only nominal compensation for their services rendered. The exemption applies if the boat or motor is used exclusively by the department, company, or association. EFFECTIVE DATE May 21, 2001.