Senate committee backs sales-tax exemption for food bank vehicles and homeless-housing trailers
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Summary
The Finance Committee reported House Bill 4226, adding food-bank vehicles (and, by committee substitute, some trailers used to house homeless individuals) to state motor-vehicle sales-tax exemptions. Houston Food Bank testified the exemption preserves operating funds for meals.
Senator Campbell presented House Bill 4226 to the Senate Finance Committee to add food-bank vehicles to the list of motor-vehicle sales-tax exemptions and, by committee substitute, to extend an exemption to trailers purchased for purposes of housing people experiencing homelessness.
Carolina Cano, government relations manager for the Houston Food Bank, testified in support and explained that food banks rely on large vehicle fleets for distribution; she said the Houston Food Bank operates approximately 190 vehicles and that paying motor-vehicle sales tax on such purchases diverts funds from meal programs. "Houston Food Bank has paid more than $47,000 in these state motor vehicle taxes," Cano said, adding that the money could otherwise have funded meals.
Committee members asked clarifying questions about operations and costs. Senator Campbell said the exemption would relieve operating budgets for a sector that does not receive specific state grants for vehicle purchases. The committee adopted the substitute and reported HB 4226 favorably to the full Senate with a recorded vote of 10 ayes, 0 nays.
