HBA-CBW H.B. 3390 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3390
By: Oliveira
Ways & Means
3/30/2001
Introduced



BACKGROUND AND PURPOSE 

Current law provides an exemption from limited sales, excise, and use taxes
for machinery, tools, supplies, and equipment used or consumed exclusively
in the repair, remodeling, or maintenance of aircraft, aircraft engines, or
aircraft component parts by or on behalf of a certificated or licensed
carrier or certain persons who use the aircraft for providing flight
instruction recognized by the Federal Aviation Administration. However, the
exemption does not include aircraft items used in the repair and
maintenance of federal government aircraft.  House Bill 3390 exempts from
limited sales, excise, and use taxes the repair, remodeling, or maintenance
of aircraft, aircraft engines, or aircraft component parts by or on behalf
of the United States and its affiliates. 

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 3390 amends the Tax Code to exempt from limited sales, excise,
and use taxes  machinery, tools, supplies, and equipment used or consumed
exclusively in the repair, remodeling, or maintenance of aircraft, aircraft
engines, or aircraft component parts by or on behalf of the United States
(U.S.), an unincorporated instrumentality of the U.S., a corporation that
is an agency or instrumentality of the U.S. and is wholly owned by the U.S.
or by another corporation wholly owned by the U.S. 

EFFECTIVE DATE

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