Bill Caption

Relating to the definition of volunteer fire department for purposes of certain motor fuel tax exemptions.

Fiscal Notes

No significant fiscal implication to the State is anticipated. 

Bill Analysis

HB 791 would define "volunteer fire department" in the Tax Code as a fire department operated by its members, including a part-paid, non-profit department composed of at least 50 percent volunteer firefighters. Certain motor fuel sold to all volunteer fire departments is exempt from taxes, and this bill aims to clarify the definition of volunteer fire departments for that purpose so that the exemption applies if a fire department is staffed at least 50% by volunteers.

Vote Recommendation Notes

Texas Action remains neutral on HB 791 because it does not affect our liberty principles. This bill would merely tinker with an existing exemption rather than create a new exemption. Although technically an expansion of the exemption this appears to be in alignment with the original spirit of the exemption. 

However, we generally oppose tax exemptions of any kind because they inevitably raise the burden on other Texans. Taxes, when necessary should be broad based and applied equally in order to be fair to all tax payers.