HBA-RBT H.J.R. 72 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.J.R. 72
By: Hamric
Ways & Means
4/19/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, vehicles that are leased and are used for personal use are
required to pay a yearly business personal property tax.  As proposed,
H.J.R. 72 requires the submission to the voters of a constitutional
amendment providing an exemption from the business personal property tax
for vehicles that are leased, used for personal use, and are not held
primarily for the production of income by the lessee. 
 
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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subsections (d) and (e), Section 1, Article VIII, Texas
Constitution, to authorize exemption from ad valorem taxation of a leased
motor vehicle that is not held primarily for the production of income by
the lessee and that otherwise qualifies under general law for exemption.
Authorizes the legislature by general law to provide limitations to the
application of this subsection to the taxation of vehicles exempted under
this section.  Makes conforming and nonsubstantive changes. 

SECTION 2.  Requires this proposed constitutional amendment to be submitted
to the voters at an election to be held November 2, 1999.  Sets forth the
language for the ballot.