Revenue & Taxation- House

Members this of the special order of business just so you know it can be informational only at this point will likely come back to this bill representative ray you're recognized maybe get settled in. Okay thank you Mr chairman and members of the committee appreciate everybody being here this morning this is house bill ten for ten forty six. What this bill would do is it would provide a sales tax exemption for wheelchair accessible vehicles as well as aftermarket wheelchair accommodation services I wish I could say that this is an idea that came up with all on my own but that would not be true I got this idea came to me from a constituent of mine named Jerry and Jerry was planned to be here today but wasn't able to make it unfortunately he is a one hundred percent disabled veteran and he relies on a wheelchair for his mobility but as we all know. Having a wheelchair certainly helps with mobility but it doesn't take you to the store it doesn't take you to work it doesn't take you down the interstate you would need a wheelchair accessible vehicle in most instances to do those sorts of things Jerry spent years working with other disabled veterans helping them navigate the BA and a obtain the benefits that they've earned through their service and when I initially drafted this bill after discussing it was Jerry I drafted in a way that it would all only applied to disabled veterans but then Jerry connected me with the gentleman named Carlton who's here today and you'll hear from him. Carlton operates a business in selling County called mobility works and I went down to meet with Carlton and meet with Jerry and we discussed this issue and how it how it would help people and after visiting with Carlton it became apparent to me that there just wasn't any way that I could write this bill in a way that only applied to veterans because I started thinking about all the other people that would benefit from this thinking about. The man who will never walk again because he falls off his roof always clean as gutters and now he's paralyzed. Thinking about the woman who will be confined to a wheelchair for the rest of her life because she's hit head on it crashed by a drunk driver thinking about the parent whose child has muscular dystrophy or spinal bifida who need to buy specialized wheelchair so that they can transport their child along with the rest of their family. And these vehicles everybody knows vehicles are expensive right outside of your home is probably the most of. expensive thing that a normal person will buy over the course of their lifetime these vehicles represent an enormous cost to individuals and families so the cost of a new vehicle that is wheelchair accessible typically runs between seventy five and a hundred thousand dollars by most estimates I've been able to obtain obviously if you purchased a used vehicle that would be much less expensive but still not gonna be cheap and doing just an aftermarket wheel chair accommodation on an existing vehicle would be around thirty five thousand dollars or more. not only that it's important to remember that you know having a disability they can find you to a wheelchair leads to a compounding of other problems there's medical bills loss of income accetta and. Vote for me this this idea and this bill was was really born out of a place of compassion whether you're disabled veteran or your just any other person living with a mobility disability you know having a wheelchair accessible vehicle dramatically increases your quality of life as well as your health you know we've we heard we've known for a long time and were reminded during the pandemic about the effects of the psychological and health benefits of socialization and being confined your home often has serious negative implications for people who are wheelchair bound you know leading to loneliness depression other sorts of mental health problems. It's just something is as basic as being able to leave your home and go have breakfast at cracker barrel yeah that's a luxury that I know I certainly take for granted that a lot of people really struggle to enjoy so I want to thank everybody who has co sponsored this bill with me I would point out that there's bipartisan support for this bill in terms of co sponsors also like to thank the Arkansas veterans coalition they voted to support this legislation I received a letter from them saying that their support for was unanimous Arkansas advocates for children and families this list of this bill among those that they support which may be a personal first for me The and the governor's council on developmental disabilities so you'll hear from as well as noted on their website about the the benefits that this this legislation would provide to disable our Kansans it wrapping up I will say you know the fiscal impact on this the DFA gave was a million dollars for fiscal year twenty four and one point six million for fiscal year twenty five I know that's not an insignificant amount of money but also in a budget of six billion dollars I think it's a small price to pay to help our our fellow Arkansans enjoy the basic level of mobility that I know I certainly take for granted every single day and I know this session is not over we still have time if you'll have suggestions to improve this bill or make any necessary changes I would certainly be open to doing that and working with anyone here who has an interest in that and there's some people here to testify in favor the bill but before that would just be happy to take a few few questions if anybody has any representative brown you're recognized. Thank you Mr chair. And thank you representative right for running this legislation. He's right I have a. Just a couple of questions I know of with the disabled veterans because my husband was a hundred percent disabled veteran that the VA provides a lot of a lot of the equipment I don't think they provide the vehicles Would the V. eight receive a tax exemption on the things they purchase for veterans do you know. I'm just curious. Well if it's a if it the VAT. I'm not sure that I can answer that completely I guess I would say if it's a wheelchair accessible vehicle are or an aftermarket accommodation then it would I'm I assume it would qualify the VA does have an auto grant program it's forty five oh two program but having talked to some disabled veterans who've gone through the process of obtaining that it's an extremely arduous process that can take years upon years to complete sometimes as much as four or five years from from veterans that I've talked to and even then it only because it would only cover just a fraction of the cost of obtaining a vehicle said that even if you go through the full process you're still going to incur significant costs obtaining a vehicle thank you we didn't in the VA did not purchase a vehicle for us they just a. Put the the left arm in the back of the car but the other question I have is would date with this legislation also cover vertical lips come like a little elevator would cover those kinds of things yes that would that would that would be part of the accommodation thank you. Representative ray just a quick question you mentioned the after market modification that those costs usually run thirty five thousand dollars did you explore three D. F. and a what just exempting the aftermarket Adams I don't know what percentage of vehicles are ordered from the factory that are wheelchair accessible and equipped versus what happens after market where there's an add on or modification to a vehicle but did you explore that through D. F. and a to see if that would you know obviously that would provide a much lesser financial impact to the state but do we have any information on that. No Sir I did not request an impact on that particular breakdown but I certainly would be curious to know if that something that they have the ability to estimate and would be curious to know what their estimate would be online and I know we're gonna have Paul at the table at some point policy could be preparing some comments related to that question I'd appreciate it. Thank you Senate members any other questions. Right seeing none we do have several folks signed up to speak on the bill first on the list is Bruno showers. Hi. You get settled in if you would just introduce yourself for the record and then you can begin your testimony. Yeah approve our senior policy analyst for Arkansas advocates for children and families appreciate the opportunity to speak today by the way Mister chair so. As representative ray said this is an unusual situation so all I'm here to explain our support for each B. ten forty six I think you did a great job by the way so at Arkansas advocates for children and families we believe that all families should have the opportunities they need to thrive and we should pursue policies that make that possible and we definitely include families with disabilities mobility issues in that. we know that adequate and reliable transportation can be a big issue for this population and we also know that sales taxes fall most heavily on lower income more Kansans in our Kansans on fixed incomes which would include a lot of elderly our Kansans of Parkinson's with disabilities that would benefit from this legislation in each B. ten forty six kind of helps address both of those issues at the same time at a very modest costs to the state in my view. we have exemptions for other necessities in our state tax code already we don't tax prescription drugs for example and I think that this kind of exception follows the exact same logic is that it really just makes sense to us and that's why we support this legislation. Happy to answer any questions members any questions. All right saying none thank you Sir appreciate it. Next up. We have a Scott I can't really read the last name. This is a Daniel Scott Daniel to work. You're recognized if you would just introduce yourself for the record thank you commissioner Scott Daniel yes and I failed to hand writing in school. I want to thank all the commissioners I'm sorry all the representatives here today and if if you can't tell a little nervous I am completely out of my element thank you ribs and ready for the pushing this I. I'd like to I wrote notes but I think I'm going to skip that I think I'd rather just tell you as the parent of a disabled child What we deal with now I I will I'd be remiss not to tell you that I am fortunate enough to have a career that gives me the ability to afford the tax so I'm not here for that I'm here to tell you that I see it every it literally every day the families that suffer with regards to the cost that it takes to and that is just incurred with regards to dealing with a disabled child and so The ability that you guys came together collectively as a group to say Hey it's more than just the veterans it's children I have a really thank you for that apology representative brown you have a really good question and I can address the fact that there are programs out there that are to help you get Assistance with regards to adding things to your vehicles but I can tell you I'm pretty diligent I'm very focused with what I do for a living and I can't even get progression or those groups to really help in those needs. I grew up in a teeny tiny country town I don't know if you know or Marshall Arkansas is but I grew up into trailers my dad bought two trailers he cut a hole in one side and a hole in the other and connected with the breeze way he enclosed the breezeway so my sister and I lived on the west wing and my mom and dad lived on the other we both had kitchenettes so that was a benefit. The reason I tell you that story is to to help you understand that I I do know poor Searcy County is probably one of the poorest counties it's actually connected into the delta region never quite understood that but politics is not my deal but I'll tell you from the suffering side it is a literally cataclysmic with regards to the expenditures what do I do for a living I am the managing principal partner of an investment firm I have an accounting firm in a tax law firm partners as well so I do understand money and capitalization but my son Duchess sixteen. He goes to Catholic if it weren't for our van there is no way I could get him out of the house he is already shy he's reclusive with regards to because of inability to be able to really function in a normal standard cognitively he's fantastic but he has muscular dystrophy Duchenne in little shout out to Dr panda children's fantastic program but. You guys having the guts to be able to to pass this bill of ten forty six is I can't I can't tell you how much it means to me but I can. maybe I can tell you how much it means to me but it will mean so much to these folks out here these are Kansans that maybe don't have the abilities to be able to financially afford it it will make a huge impact for them. Understanding dollars it is a small amount to really give relative to the overall budget of the state. So I would truly encourage you to have the courage to to vote it through and again I really thank you for your time and I really thank you for the service that you get to the state so thank you for having me thank you Sir would you take a question bill yes sorry no you're fine you and you seem like a natural so you're doing fine we just have a question from a couple of members representative right you're recognized. Thank you Mr chairman image this or the cost of a wheelchair all this stuff is really really went up a lot in the last fifteen years how much is the average cost of a will cheer for you know someone that you know as to have mobility thank you for the question a great question how much is it to the fore for say wheelchairs in general so when you when you get delta is these cards right I we've we've not ever had a disabled family member before so we we really didn't understand the process but I will tell you that we we deal with tell for a and I would encourage anybody to call me anytime if you want to talk about that that's a whole other subject but will chairs he has a manual and then he has a power to chair the power chairs run roughly around fifty two grand those are assisted and helped through the Tefal program but if you but you get one chair for five years I believe within that time frame and so if you travel you and you don't have a live system in your van that four hundred pound three hundred ninety six pound wheel chair will you be able to transport that so you'd have to have a a manual chair that you can push through so those chains run roughly around thirty five hundred Bucks so if you get that but the power chair then you have to pay for the other chair out of your own pocket. Sir I per I really appreciate that answer and you gave me a good one you know the last time I checked the the ones that were automatic or around thirty five hundred dollars so they have went up about two thousand dollars as of last year. Thank you Sir. Great question all right members think any other questions. I was down thank you for your testimony appreciate you coming down thanks Sir. Nine no one signed up to speak against the bill we have won a couple more for the bill look by Colton Phinney. Yeah I get that even close yes okay. Welcome if you would just introduce yourself for the record and that you can begin your testimony. My name's Carlton training on the general manager with mobility works are brine of been doing this for about forty years and have wanted to see the sales tax exemption and owned. Vehicle side of it for the long as I can remember honestly As we say everything in this world cost a lot it seems like in the last few years our wheelchair lifts our wheelchair vans they're not cheap. I don't know I think right now currently. Of we do not go to the revenue department for clients because it is the owner's responsibility to register vehicles of one or two right now that are three to five months old they can afford for the sales tax on the dresses. So they're running around on an expired temp tag. So we try to do everything we can to help them and encourage them to go and register that vehicle. The van itself the wheelchair lives you can get a prescription from your doctor to omit the sales tax on a wheelchair lift. Currently you cannot do that on the vehicle we treat a wheel chair as a prosthetics device. Walking away with why can we not treating the van is a prosthetics device. As my predecessor just said you can't move the chair five hundred pounds or a client without a vehicle. If we look at that Shas's as a prosthetic device. And amid the sales tax on it any doctor script will take care of this I realize it is money coming out of the state. Budget money coffers were you want to call it. But there are clients who cannot afford to do this period they struggle to make the payment on the vehicle. So. The other state home. Don't know where. Or they take public transportation if they have an inner city. The last time I checked a lot of times public transportation will take me to get an ice cream and a clock and not with my grandkids. So it's kind of a sad world that we live in. The VA is a totally different subject there's ways around that They have two different programs on that if anybody wants to know a be happy to fill that into. I just think that. This state as great as it is I believe we can afford to omit the sales tax on these vehicles. For clients. I thank you would you take a couple questions anything I can answer yes Sir I represented Mayberry you're recognized. First of all thank you for servicing my van for so many years you've done a great job can you just share a person who uses a wheelchair for mobility who wants to work. How do they get to work if they don't have a vehicle to get there. They can apply through ARS Arkansas rehab services and ARS will assist in purchasing the conversions out of it. I don't believe ARS really does anything with the chassis is so if they get the vehicle purchase they have to finance it and put it back into the work force as long as they're working my understanding is they are as well system I've never seen what that stuff but also cost the taxpayer to to get that man there it is not an easy process there's no guarantee they're gonna be there it's a big hassle and a lot of people who use wheelchairs for mobility or just not kind of not gonna do that but if they have a van transportation to get them somewhere they are more likely to work would you agree I agree and become a taxpayer instead of a tax user name I believe so okay and if you don't mind if I ask ask one other thing to they also would have the ability would you not agree to get themselves to their own doctors appointments potentially instead of relying on public transportation or somebody else to get there as well which potentially could save taxpayer dollars as well I believe so yes ma'am okay thank you very much thank you. But Mr any help me understand so your service do you buy of of banned from a dealership and then taken modify it or they come from the factory you know wheelchair accessible. There's no wheelchair accessible vehicle of involved right now from a factory they're all converted vehicles whether they're coming from Ford Chrysler Dodge whoever their overall Chester's or a standard sizes and shipped off converted and then sent to a mobility dealer. So it's not like you're just going to buy a van from a dealer and then converting it and that at that time we can do that on certain vehicles but not every vehicle okay all right thank you members any other questions. Ninety nine thank you for coming down create a testimonial for having me. Members will vote one more signed up to speak on the bill Jonathan Taylor. If you would Mr Taylor just introduce yourself for the record you can begin your testimony good morning chair up and thank you so much for having me I am Jonathan Taylor I'm executive director of the governor's council on developmental disabilities and you said on the last one to speak so I'll keep it brief. The council does a needs analysis for a five year plan and Transportation consistently comes up as a top issue specifically people with disabilities struggle with getting access to and affording transportation of mobility works was kind enough to be here in Bryant I looked on the website the average price on the first page I looked at was around forty one nine on Friday I saw a used Dodge grand caravan twenty seventeen that was forty one nine ninety that same vehicle had a maximum blue book value of sixteen to eighty seven. Now without question modifications are absolutely necessary as as we've already heard and they're expensive in this instance that same minivan cost a hundred fifty seven percent more. And that creates a significant financial challenge for our Kansans that need them accessible transportation is important and we recognize that options that are affordable or or win for Arkansas families and wheelchair users throughout the state. And we like this bill. Thank you members any questions. All right saying aye Mr Taylor thank you for coming down I appreciate that. Hi sing NO one else signed up. And no one else on speak for against the bill the DM they like to come to the table and discuss anything how you got the numbers I think representative Beatty had some questions for you okay thank you. Well I guess we see Larry left the room so you have to do it. Thank you Mr chair members of the committee Paul gearing DFA. A jury Smith sales and use tax section with the FAA thank god represent baby would you be able to repeat your question I've certainly heard it the first time I wanna make sure that we're not missing something at one just how you came up with the impact statement to the more specific questions I was asked was asking you know the statement was that the modification or aftermarket equipment cost was approximately thirty five thousand dollars I'm not certain if I heard that number not right but that's that's what I heard so when you prepared the impact statement what would it be based on the thirty five thousand we just looked at exempting the after market equipment or modification on on the vehicles and what would be the impact statement based on that our approximation and we would certainly be happy to take a look and see I'm I I'd let true speak to if he had that data separated in his analysis. So at when preparing the stance your first question we utilized industry data as well as using DFA data for businesses the reporting these type of sale so we use both to try to get the best information here and to go back to what the of my representative for mobility enhancement stated the the actual exemption for the aftermarket parts actually already existed as the mobility enhancement equipment in our gross receipts rose thirty eight point two so those items are already exempt assuming that the patient provides a doctor's note so that would not have been something we really factored into this impact earlier primarily looking at new and used motor vehicles that are purchased that would have been already have the mobility enhancement done to them or what to purchase before and then the R. the they took it to someone like mobility works to have those enhancements done to it afterwards so this is the registration and the tax paid a registration on new and used motor vehicles. Yeah just a follow up so I understand on the parks and material but the labor it you know this this works labor intensive I would assume and make these modifications and that would not be I mean that would be taxable correct with the labor on and these mobility has I believe that that would also be exempt whatever you provided to the doctor's note at long with that but I can verify that for you so so strictly the the issue is the motor vehicle yes the and the other on the the exemption for mobility enhancement Quitman specifically a does not include the sale of the motor vehicle itself okay thank you. Resented Fortner you're recognized. Thank you Mr chairman amend can you tell me how many. Registered how many are currently registered with the handicap of capabilities now. We did not look at the registered with the handicap capability for the placard because that there's not information that's provided to our motor vehicle system that is specific to wheelchair accessible handicap so it's going to include many more handicaps individuals that have a placard. Thank you so you you don't know. What the potential number of vehicles involved are so just said I understand you correctly at because there's not a registration process for identifying vehicles that are being enhanced for wheelchair purposes there is not an exact number from a motor vehicle so that we can get based off of placards issued. Where where did you come up with a number if you don't know how many vehicles to figure on so there is industry data like I mentioned before as well as looking at businesses that are providing these types of services and selling those types of vehicles we're analyzing that data to come up with an impact or with a number the rough estimate for an annual was approximate three hundred sixty five vehicles New and used. Thank you. Representative Beatty recognized. What what's the average cost of of these vehicles as has sold. So actually with the the people that testified earlier those numbers are right in line with us we were actually at the low end I think the comment was made that they were between seventy five hundred fifty thousand for new and upwards of fifty thousand for used we actually use our impact for new at this sixty thousand or not sorry seventy thousand rather than seventy five and we had it at seventy as a good base and then also at forty for the used and you said you use three hundred sixty five is the total and that we had a based off of the industry data seventy two percent of those were used and twenty eight percent was new so we factored it down based off the majority of these would be at the lower rate thank you. Six are you saying that you that you. There were three hundred and sixty five of these vehicles modified a year in this case if we were looking at yes the new that I've already been modified and were sold as well as used. Representative rate how many vehicles. Does would you gas. That the German for mobility works. I guess works on or converts per year. when he and I discussed that we sort of estimated that knew there would be approximately two hundred statewide per year and I think their number includes used you know used vehicle sales as well so and. Not knowing any more about it that the then I do I think they're as to miss Adams reasonable okay. President of Warren you're recognized. Good okay. Representative brown you're recognized thank. Thank you This might be for Mr Smith To to to practical nitty gritty how does it work kind of question if I purchase a vehicle from the dealer. I have thirty days to get it registered. So. If I'm purchasing it for the purpose of having it modified. And that. Modification takes longer than thirty how to make how do we how does a person avoid paying sales tax until they can actually pick up their vehicle. there wouldn't be a extension period for that purpose if they purchased the vehicle the laws pretty specific as to how long that they have to register because I think it might have gotten recently change from thirty days to an a longer period of time that I think it's sixty days now. This. So if if it extended beyond the sixty days they have to go and pay the sales tax in order to get their vehicle registered yes ma'am we current law works this. Maybe we need to find a way to address that too thank you. Thank you president brown all right members any other questions for definite. Seeing none thank you German for coming to the end of the table thanks no one else signed up to speak for against the bill representative ray would you like to close although we're not taking over this time but your while you're recognized good closely bill yeah thank you Mr chairman thank you committee for your patience and listening to everyone's testimony this morning I understand that we're not taking a vote today but I would just ask everyone if you if you like this idea and I got a couple of text messages while I was sitting here for members that seem like they like the bill just please continue to mention it in discussions as we move toward decision making in deciding what bills are the committee's gonna endorse so thank you for your time this morning. Thank you president. All right members were skipping over house bill fourteen ninety one at the request of the bill sponsor for likely to hear that one Thursday and we're gonna move down the house bill sixteen twenty seven. Representative more. In more you're recognized to be just introduce yourself for the record. Thank you Mr chairman thank you committee my name is representative Jeremiah more District sixty one first time the revenue tax first time the revonda Asa pretty far away it down there in well you know I'm in state agencies so but I'm always sitting down there this is just a. Recognized to present your bill so House Bill sixteen twenty seven is a really it's really just clarification bill and I want to thank the the twelve members on this committee who are co sponsors on this bill as well as the rest of the sponsors will It's pretty straightforward it clarifies a practice that the FNA already does and which it says an hour I'll read it to be quite clear membership dues paid to a hunting or fishing club that are paid to obtain access to land for the primary purpose of hunting or fishing or excluded from the tax levied in subdivision the idea of this section so basically if you have a group of guys or gals get together and to create a hunting club and pay membership dues annually is basically just clarifies and puts it in code that it is not taxable and with that I'll open for any questions. Our members any questions. All right seeing none of no one signed up to speak for or against the bill. If they have a name like to add. Members any questions for Devon able for ram up. Not you of motions property okay all right no question given a thanks Paul representative you are recognized to close for your bill close from a bill and I appreciate a good vote ma'am you for discussion of the bill and we have representative rate you're recognized for your motion I move to pass the motion do pass in the discussion. All right all of the favor signify by saying aye. Posed as out congratulations pastor bill. And we thank you anyone here for representative Senate bill three sixteen. The guys hang tight one second I'm gonna text that bill sponsors if you want to run if you'd give me and give me a minute or so. Members are going to go back up to the top of the agenda I apologize I skipped over house bill fourteen fifty four representative ray you're recognized president Bill. Okay thank you Mr chairman members the committee so this bill house to house built by a fourteen fifty four addresses an issue which is that if your primary place of residence is contained within an LLC you're not eligible for a homestead tax credit like other homeowners enjoy this bill would allow for a person to claim homestead tax credit if their principal place of residence is owned by an LLC that they own or with their spouse. So in order to to claim the homestead tax credit that person would have to provide proof of eligibility which in this case means number one they have to have a certificate of good standing all up from the Secretary of State on their LLC and to that have to submit a signed attestation that they're not claiming homestead tax credit on any other property there are several reasons that people would want to put their home into an LLC one of the biggest reasons is liability protection you know in the event that they're sued for a large sum of money but also the other really big reason is privacy privacy reasons the people would want to do that there are police officers law enforcement personnel there are especially under cover agents that don't want their address listed in so for for anonymity and privacy reasons I want to put their home and and and and LLC you think of you know someone who's been a victim of abuse doesn't want their abuser to know where they live they might want to put that in there and I just think it anyone who has a homestead ought to be able to claim a homestead tax credit I think that is consistent with the spirit of the of the law and so that's what this bill does and be happy to take any questions. Our current representative Cavenaugh you're recognized. Thank you Mr chair representative rate. Is there any way that you can make sure that the membership of the LLC doesn't change. I mean if it's one member but then if it's a husband and a wife that's one thing but what if they decide to change membership and they're still claiming this tax exemption how would we be able to verify that. Well if they did that then they would no longer qualify I'd as to how that would be verified the I think that might be a question that an assessor would be better able to answer them myself okay a follow up Mr. So. My understanding and I get this thing working through our state process is if you own a home in the L. L. C. or let me state if the home is owned through an LLC the people that live in it have to have the lease with that L. L. C. because they can't live there because it's not that there have to be a lease is my understanding so if they have a ways how was that their primary I guess that's what I'm saying how would. Is that gonna void it be in a primary residence they have to lease in there the leasing. Well not of the law allows for it I mean I I would say I think this situation is sort of analogous to how you can claim homestead tax credit if your home is within revoke herbal or revoke herbal trust and and this I think would be similar to that you know if you own the LLC and the home is it is owned by the elevator the pure the owner of the LLC and home is within the LLC and you live there that's what this would cover okay. Do we know how many homes this is going to affect and what it might be. I do not know representative gene asked me that question earlier I did ask the FNA that question they they don't know either other than that it's most likely a very small percentage of of overall homeowners that would do that do this there's I've visited just before the meeting with of a former assessor who said in Columbia County over the course of nine years I think they had twelve people try to apply that had home contained within it I will say okay thank you. Representative Beatty you're recognized. For multiple member side I know the bill specifically addresses a married couple of the FOR LLCs were there multiple members would would those multiple members all lose the ability to have a a homestead exemption they would have to make that a little election that if they're non married couples but they own multiple properties. All members would that would be their one homestead exemption in the state. I'm sorry can you repeat your question I had trouble following it well. I'm just saying if it an LLC with multiple members that are not a spousal relationship so you know. Folks got together to purchase the property or form an LLC and then they they purchases property and and maybe they they are living there Would would that be there one homestead exemption this state they couldn't have it the most the other members all the members of that LOC would have to elect this to be there they're exemption would that. Well the way the way I have the bill written it would be the only way in which this situation would qualify as if it were one owner or if the owner were a a by a married male couple married couple yeah okay signed by making it more complicated than it needs to be. And I'm thinking business thank you David I'm a representative of a mac and then you're recognized. Thank you chairman the question it says here that the trust is a drawing of the prince will place of residence of the creator of the trust so just to clarify if this married couple has children and the married couple dies the children here at the home the home automatically comes out of the trust is that correct. I did not bring the fiscal note with me to the end of the table so I'm. Say it again so it says that the your vocal trust is the dwelling. If the drawings the principal place of residence of the creator of the trust so my question was if the married couple has the trust as LLC and they put the home in it and then the couple dies in the child in here it's the home is the home automatically then fall out of the trust the trust as a carry on is that right I don't know the answer the question. You will stand the test thank you. You will get that the homestead exemption okay perfect thank you. One did you want to add anything to clarify that. It's my understanding yes from a title company work that if you. If the ownership changes the couple dies in their new owners the of the trust document then they would have to apply for the tax homestead exemption themselves to get it. That a couple would no longer have it. If they want to make that their primary residence then they can apply for but if it's like three kids owning it and they are you have a home somewhere else they're not going to get a homestead exemption about it didn't mean to put you on the spot but I appreciate the clarification. Members any other questions for representative ray. Seeing none that no one signed up to speak for or against the bill anyone the audit's going to speak for against the bill. Did anyone come to table if anything that. Members any questions for DFA. Not seeing none representative ray you're recognized to close for your bill. Okay thank you Mr chairman I'm close for the bill and I move do pass. We have a motion do pass representative ray any discussion. I'm thrilled he's offered this bill couple sessions ago and I think representative Warren remember this we had an undercover agents come to us and ask for some protection this provides that protection so this is a great bill all right great any other discussion all right seeing none all in favor signify by saying aye. Opposed. The ayes have it our congratulations you pass your bill. Members of the a bill sponsor of Senate bill three sixteen wants to on the bill Thursday so seeing no other business thank you for your participation we are adjourned.