Reprint from the Progress Times - May 18, 2007
©Progress Times 2007 - All Rights Reserved

Travel Trailer Tax ReliefPasses The Senate

"This is a big victory for Winter Texans," said a jubilant Gene Phagan, from his home in Greeley, Colorado.

This week the Texas Senate passed H.B. 1928 authored by State Representative Kino Flores of Hidalgo County and supported by Senator Eddie Lucio of Cameron County. The bill will eliminate taxes on travel trailers and park models left year-round in Texas.

The bill states that it applies only to a trailer-type unit designed primarily for use as temporary living quarters in connection with recreational, camping, travel or seasonal use.

In April, the bill passed the Texas House of Representatives by a vote of 107 in favor of the bill and 20 opposed. The bill was passed by the Texas Senate with a vote of 31-0 on Tuesday.

After getting Senate approval, the bill was then sent to the office of Governor Rick Perry, who has three options. He can sign it into law, veto it or simply ignore it. If he were to choose to ignore it, the bill would automatically become law after a period of time.

If the bill becomes law, taxes will not be charged after January 1, 2009. According to Phagan, the taxes were left in effect for two more years in order to give local school districts, who depend on the taxes, an opportunity to come up with new sources of revenue to make up for revenues lost. Winter Texans will have to pay taxes for 2008, but beginning in 2009 there will be no more taxes on travel trailer and park models left in Texas year-round.

Phagan said for the past eight years Winter Texans who left their travel trailers and park models in Texas year-round have been subjected to property taxes on them in spite of the fact they did not own the land where they were sitting.

Many felt the property taxes were unfair because they paid sales tax on the units at the time of purchase. The intent of the vehicles is for recreational purposes and are not to be used as permanent homes.

Those who buy site-built homes or larger manufactured homes designed to stay in one place do not pay sales tax on their homes when they are purchased. They pay property taxes annually instead.

Calling the property taxes placed on the units "double taxation," members of the Upper Valley Home Owners Association, of which Phagan is president, joined together to fight the tax. The organization, made up of representatives of about 20 parks throughout the Rio Grande Valley met monthly to discuss strategies for fighting this taxation.

They took their battle to the Texas Supreme Court before getting satisfaction in the state legislature.

The Texas Recreational Vehicle Association is also very pleased by the Texas Senate vote. Clark McEwen, executive director of TRVA said the organization has been involved in the dispute for six years and is pleased that something has finally been done to resolve the situation. McEwen gives credit for the successful reversal to Representative Flores and Senator Lucio who worked to resolve the situation and also the hundreds of people in South Texas who stayed focused on the issue until it was resolved.

"Winter Texans in the Valley for years to come will enjoy the fruits of their hard work," said McEwen.