HB 3229

84(R) - 2015
House Ways & Means
House Ways & Means

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


John Cyrier


Trent Ashby

Bill Caption

Relating to the motor vehicle sales tax imposed on the purchase, rental, or use of certain emergency services vehicles.

Fiscal Notes

A fiscal note dated May 8, 2015 anticipates a negative two-year net impact to General Revenue Related Funds from CSHB 3229 of $312,000 through the biennium ending August 31, 2017.

Bill Analysis

House Bill 3229 would amend Chapter 152 of the Tax Code relating to taxes on sale, rental and use of motor vehicles to add emergency medical services chief or supervisor vehicles to the list of vehicles that are exempt, under certain conditions, from the taxes under Chapter 152. It would also add to the conditions for the list of vehicles to be exempt that it would have to be purchased by an entity that has an agreement with a local governmental entity to provide emergency ambulance services. The conditions would remain non cumulative.

Vote Recommendation Notes

Under current law, counties are exempt from paying the liquefied gas tax or the compressed natural gas or liquefied natural gas tax, meaning that hospitals are also exempt as entities operated by the county. Certain ambulance services would hence already be exempt from certain motor fuel taxes

House Bill 3229 would exempt certain fire trucks and emergency medical services vehicles from taxes on sale, rental, and use of motor vehicle when the vehicle is purchased by an entity that has an agreement with a local governmental entity to provide emergency ambulance services.

House Bill 3229 is not the first bill that tries to bring tax relief to medical emergency services. We understand that medical emergency services are crucial in life-or-death situations. Additionally, House Bill 3229 would apply a tax exemption that already exists for certain services to non-governmental entities that provide those same services.

Nevertheless, like any exemption for a particular group in an industry or area of business or service, this can potentially cause unintended consequences when some emergency services remain liable to pay the tax.

As a consequence of potentially good and bad provisions in the bill, we will remain neutral on House Bill 3229.