HBA-JLV H.B. 3165 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3165
By: Chavez
Ways & Means
4/1/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, child-care facilities are not exempt from ad valorem taxation.
Due to increasing costs and high property taxes, many child-care facilities
are facing difficulties in meeting financial obligations and are having to
go out of business.  House Bill 3165 provides a tax exemption of the real
and tangible personal property of certain child-care facilities. 

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 3165 amends the Tax Code to provide that a child-care facility
that qualifies as a day-care center or a group day-care home is entitled to
an exemption from taxation of the real and tangible personal property the
child-care facility owns that is used exclusively and is reasonably
necessary for providing care for children attending the facility. 

EFFECTIVE DATE

January 1, 2002.