HBA-JLV H.B. 3049 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3049
By: Ramsay
Ways & Means
3/30/2001
Introduced



BACKGROUND AND PURPOSE 

Current law does not specifically prohibit the interest earned on motor
vehicle tax escrow accounts from being used for various purposes.  While it
is unclear if many collectors misuse the interest earned on such escrow
accounts, there are concerns that the language of current law is vague and
may allow for the misuse of the interest earned on the above mentioned
escrow accounts.   House Bill 3049 prohibits interest generated by an
escrow account to be used to supplement the salary, expenses, or allowances
of the county tax assessor-collector. 

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 3049 amends the Tax Code to prohibit interest generated by an
escrow account for prepayment of property taxes associated with an owner's
motor vehicle inventory from being used to supplement the salary, expenses,
or allowances of the county tax assessor-collector. 

EFFECTIVE DATE

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