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.