Bill

HB 1398

84(R) - 2015
House Ways & Means
Read Bill & Check Bill Status
House Ways & Means
Education
Taxation

Companion Bill

SB 724

Vote Recommendation

Yes
  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral

Author(s)

Tom Craddick

Co-Author(s)

John Frullo
Celia Israel
Tan Parker

Bill Caption

Relating to the motor vehicle sales tax applicable to motor vehicles used by transportation companies for certain purposes.

Fiscal Notes

A fiscal note dated May 7, 2015 anticipates a negative two-year net impact to General Revenue Related Funds from CSHB 1398 of $4,000,000 through the biennium ending August 31, 2017.

Bill Analysis

House Bill 1398 would amend Section 152.082 of the Tax Code related to the sale of a motor vehicle to or use of a motor vehicle by a public agency. It would specify that to be exempt from motor vehicles taxes, in addition to being operated with an exempt license plate issued under Section 502.451 of the Transportation Code, a motor vehicle must be used by a public agency or a commercial transportation company to provide transportation services under a contract with the board of county school trustees or a school district board of trustees, or the governing body of an open-enrollment charter school.

Vote Recommendation Notes

House Bill 1398 would specify in statute that private school bus companies that provide transportation services under a contract with a board of county school trustees or school district board of trustees or the governing body of an open-enrollment charter school, are exempt from motor vehicles taxes.

According to the statement of intent for the bill, these companies have been considered exempt for years, and House Bill 1398 aims at clarifying the law.

While we do not support tax exemptions for particular groups of people or businesses, in this case, the tax imposed on school buses from private companies under a contract with public schools would ultimately be passed on to school districts, hence taxpayers at large.

By exempting those private school bus companies under contract with public schools, House Bill 1398 would protect taxpayers from ultimately paying this tax and as a consequence limit the scope of government. We support this bill.