HBA-EDN H.B. 2866 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2866
By: Sadler
Ways & Means
4/19/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, boats and motors purchased exclusively for rental to
others are not exempt from the sales and use tax.  Consequently, such boats
and motors are subject to the sales and use tax when purchased and again
when rented.  House Bill 2866 exempts a purchaser of a boat or motor from
the sales and use tax if the purchaser uses that boat or motor exclusively
for rental to others.  

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 2866 amends the Tax Code to exempt a purchaser of a boat or boat
motor from the sales and use tax imposed on a boat or boat motor if the
boat or boat motor is used exclusively by the purchaser for rental to
others. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.