By Hilbert                                            H.B. No. 2504
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the ad valorem tax situs of certain commercial
    1-3  aircraft.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 21.05(d), Tax Code, is amended to read as
    1-6  follows:
    1-7        (d)  A commercial aircraft that is operated on a regular
    1-8  route or routes in this state by a certificated air carrier has a
    1-9  taxable situs in each taxing unit in this state from which that
   1-10  aircraft made a revenue departure during the preceding tax year.
   1-11  The portion of the total market value of a commercial aircraft, or
   1-12  the value allocated to this state under Subsection (b), that is
   1-13  taxable by each taxing unit shall be determined by the chief
   1-14  appraiser for the taxing unit according to the ratio  the number of
   1-15  revenue departures of the aircraft from the taxing unit during the
   1-16  preceding tax year bears to the total number of revenue departures
   1-17  of the aircraft made in this state during that tax year <A
   1-18  certificated air carrier shall designate the tax situs of
   1-19  commercial aircraft that land in Texas as either the carrier's
   1-20  principal office in Texas or that Texas airport from which the
   1-21  carrier has the highest number of Texas departures>.
   1-22        SECTION 2.  (a)  This Act takes effect January 1, 1994.
   1-23        (b)  The change in law made by this Act shall be phased in as
   1-24  provided by this subsection and Subsection (c).  For the following
    2-1  tax years, a commercial aircraft is taxable in each taxing unit in
    2-2  which it would be taxable in that year under Section 21.05(d), Tax
    2-3  Code, either as amended by this Act or as it existed on January 1,
    2-4  1993.  The taxable value for each taxing unit is:
    2-5              (1)  for the 1994 tax year, the sum of 33 percent of
    2-6  the taxable value of the aircraft as determined for the taxing unit
    2-7  under Section 21.05(d), Tax Code, as amended by this Act, and 67
    2-8  percent of the taxable value of the aircraft as determined for the
    2-9  taxing unit under Section 21.05(d), Tax Code, as that section
   2-10  existed on January 1, 1993; and
   2-11              (2)  for the 1995 tax year, the sum of 66 percent of
   2-12  the taxable value of the aircraft as determined for the taxing unit
   2-13  under Section 21.05(d), Tax Code, as amended by this Act, and 34
   2-14  percent of the taxable value of the aircraft as determined for the
   2-15  taxing unit under Section 21.05(d), Tax Code, as that section
   2-16  existed on January 1, 1993.
   2-17        (c)  For 1996 and subsequent tax years, a commercial aircraft
   2-18  is taxable as provided by Section 21.05(d), Tax Code, as amended by
   2-19  this Act.
   2-20        SECTION 3.  The importance of this legislation and the
   2-21  crowded condition of the calendars in both houses create an
   2-22  emergency and an imperative public necessity that the
   2-23  constitutional rule requiring bills to be read on three several
   2-24  days in each house be suspended, and this rule is hereby suspended.