HBA-AMW H.B. 2551 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2551 By: Uher Ways & Means 3/30/2001 Introduced BACKGROUND AND PURPOSE The financial burden of ad valorem taxation of boats used in the shrimping industry presents a strain on many shrimpers. Many in the industry register boats and other equipment in neighboring coastal states that offer exemptions instead of registering in their home port in Texas. The registration of shrimping boats and other equipment in neighboring states results in a loss of revenue for Texas. Currently, the Texas Constitution exempts from ad valorem taxation equipment used by farmers and ranchers but does not exempt boats and other equipment used by the shrimping industry. House Bill 2551 exempts from ad valorem taxation boats or other equipment used primarily in the commercial taking or production of fish, shrimp, shellfish, or other marine life to sell as food for human consumption. 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 2551 amends the Tax Code to provide that a person is entitled to an exemption from ad valorem taxation of each boat that does not exceed 100 feet in length that the person owns and uses primarily in the taking or production of fish, shrimp, shellfish, or other marine life to sell as food for human consumption as well as the nets and other equipment primarily used in connection with the use of the boat. The bill adds the exemption for boats and provides that other equipment to the exemptions that, once allowed, need not be claimed in subsequent years and provides that, unless a person required to file for an exemption in a given year fails to file timely a completed application form, the exemption applies to the property until the property changes ownership or the person's qualification for the exemption changes. The bill also provides that the chief appraiser is authorized to require a person allowed one of the exemptions for boats and other equipment in a prior year to file a new application to confirm the person's current qualification for the exemption by delivering a written notice to the person that a new application is required, accompanied by an appropriate application form. EFFECTIVE DATE January 1, 2002, if the constitutional amendment proposed by the 77th Legislature, Regular Session, 2001, to exempt from ad valorem taxation boats and other equipment used primarily in the commercial taking or production of fish, shrimp, shellfish, and other marine life as food for human consumption is approved by the voters.