HBA-KDB H.B. 1100 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1100
By: Lewis, Ron
Ways & Means
6/5/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, vessels and other watercraft constructed in
Texas but used outside of the state were subject to ad valorem taxation
even though such property was in this state on a temporary basis. Such a
property tax might have convinced shipbuilders to construct their vessels
elsewhere, which could have placed jobs associated with shipbuilding  at
risk.  House Bill 1100 provides that vessels and other watercraft that are
constructed in but used outside of this state are not subject to ad valorem
taxation. 

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 Bill1100 amends the Tax Code to provide that a commercially-used or
noncommercially-used vessel or other watercraft  that is used outside of
this state and is in this state solely to be constructed or converted, in
addition to being repaired, stored, or inspected is presumed to be
interstate, international, or foreign commerce and not located in this
state for longer than a temporary period and is not taxed as real personal
property.  Tangible personal property in this state is presumed to be in
interstate, international, or foreign commerce and not located in this
state for longer than a temporary period and is not taxed as tangible
personal property because of its temporary status if the owner demonstrates
to the chief appraiser that the owner intends to incorporate the property
in or attach the property to an identified vessel or other watercraft that
is to be converted, repaired, stored, inspected, or under construction. 

EFFECTIVE DATE

January 1, 2002.