Bill

HB 2714

85(R) - 2017
House Ways & Means
House Ways & Means

Vote Recommendation

Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral

Author(s)

Dwayne Bohac

Bill Caption

Relating to the exemption from ad valorem taxation of leased motor vehicles that are not held primarily for the production of income by the lessee.

Bill Analysis

Under current law, leased motor vehicles are not included in calculating property taxes if at least 50 percent of the miles driven by the vehicle in a tax year are for non-income producing purposes.


HB 2714 would add vehicles leased to governmental entities, vehicles leased to organizations that are exempt from federal income taxation, or used exclusively for religious, educational, or charitable purposes as non-income producing vehicles and exempt from property taxes.

Vote Recommendation Notes

While we oppose the creation of new special tax exemptions that benefit one type of industry or one category of taxpayers at the expense of others, this does not truly fit that category of tax bill. The tax code is already filled with property tax exemptions for leased property. This bill includes certain property leased to the state and select organizations on equal footing with property used for other types of leased vehicles. For this reason, HB 2714 neither uplifts nor offends our liberty principles and we remain neutral.

Ultimately we would prefer a property tax system that is low-rate, broad-based, and treats all types of property equally rather than having numerous special exemptions for preferred groups of taxpayers.