LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 5, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB4070 by Gonzalez Toureilles (Relating to an exemption from ad valorem taxation of airplanes and helicopters used exclusively in agricultural operations.), As Introduced Depending on the number and value of airplanes and helicopters used in agricultural operations, as well as the extent of their use, there could be an indeterminate amount of revenue gain. The bill would amend Chapter 11 of the Tax Code, to require that airplanes and helicopters used exclusively in agricultural operations be considered implements of husbandry for the purpose of the property tax exemption for implements of husbandry. Section 11.161 of the Tax Code exempts from the property tax implements of husbandry, defined as machinery and equipment items that are used in the production of farm or ranch products or of timber. The bill's added language would clarify that helicopters and airplanes used exclusively in agricultural operations are implements of husbandry. The bill's requirement that the use be exclusive is stricter than the current language in the law, which creates the possibility that fewer airplanes and helicopters would be claimed for property tax exemptions and thus could result in a possible revenue gain. The bill would take effect January 1, 2010. Local Government Impact There could be a indeterminate amount of revenue gain to units of local government. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, MN, SD, KK
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 5, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB4070 by Gonzalez Toureilles (Relating to an exemption from ad valorem taxation of airplanes and helicopters used exclusively in agricultural operations.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB4070 by Gonzalez Toureilles (Relating to an exemption from ad valorem taxation of airplanes and helicopters used exclusively in agricultural operations.), As Introduced
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB4070 by Gonzalez Toureilles (Relating to an exemption from ad valorem taxation of airplanes and helicopters used exclusively in agricultural operations.), As Introduced
HB4070 by Gonzalez Toureilles (Relating to an exemption from ad valorem taxation of airplanes and helicopters used exclusively in agricultural operations.), As Introduced
Depending on the number and value of airplanes and helicopters used in agricultural operations, as well as the extent of their use, there could be an indeterminate amount of revenue gain.
Depending on the number and value of airplanes and helicopters used in agricultural operations, as well as the extent of their use, there could be an indeterminate amount of revenue gain.
The bill would amend Chapter 11 of the Tax Code, to require that airplanes and helicopters used exclusively in agricultural operations be considered implements of husbandry for the purpose of the property tax exemption for implements of husbandry. Section 11.161 of the Tax Code exempts from the property tax implements of husbandry, defined as machinery and equipment items that are used in the production of farm or ranch products or of timber. The bill's added language would clarify that helicopters and airplanes used exclusively in agricultural operations are implements of husbandry. The bill's requirement that the use be exclusive is stricter than the current language in the law, which creates the possibility that fewer airplanes and helicopters would be claimed for property tax exemptions and thus could result in a possible revenue gain. The bill would take effect January 1, 2010.
The bill would amend Chapter 11 of the Tax Code, to require that airplanes and helicopters used exclusively in agricultural operations be considered implements of husbandry for the purpose of the property tax exemption for implements of husbandry.
Section 11.161 of the Tax Code exempts from the property tax implements of husbandry, defined as machinery and equipment items that are used in the production of farm or ranch products or of timber. The bill's added language would clarify that helicopters and airplanes used exclusively in agricultural operations are implements of husbandry. The bill's requirement that the use be exclusive is stricter than the current language in the law, which creates the possibility that fewer airplanes and helicopters would be claimed for property tax exemptions and thus could result in a possible revenue gain.
The bill would take effect January 1, 2010.
Local Government Impact
There could be a indeterminate amount of revenue gain to units of local government.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, MN, SD, KK
JOB, MN, SD, KK