BILL ANALYSIS



C.S.H.J.R. 31
By: Hartnett
March 22, 1995
Committee Report (Substituted)


BACKGROUND

Section 11.14 establishes ad valorem taxation for income-producing
tangible personal property, regardless of its value.  When a
property has a value less than $500, the tax generated may not
cover the cost of collection.  For properties with very low taxable
values, taxing authorities are required by law to assess and
collect a tax even though they may lose money on it.

PURPOSE

The resolution proposes a constitutional amendment granting tax
exemption for income-producing personal property and mineral
interest with a value less than sufficient to recover the costs of
administering the taxes.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article VIII, Section 1, Texas Constitution, by
           amending Subsection (d) and adding Subsections (g) and
           (h).

           (d) Makes ad valorem taxation of property held or used
           for the production of income subject to Subsection (g).

           (g) Allows the legislature to exempt from ad valorem
           taxation tangible income-producing personal property
           that has a taxable value less than the minimum amount
           sufficient to recover the costs of the administration.

           (h) Allows the legislature to exempt from ad valorem
           taxation mineral interest that has a taxable value of
           less than the minimum amount sufficient to recover the
           costs of administration.

SECTION 2. Election Date:  November 7, 1995;
           Sets language for the ballot.

COMPARISON OF ORIGINAL TO SUBSTITUTE

H.J.R. 31 proposes a constitutional amendment to exempt personal
property with a value less than sufficient to recover the costs of
administering the taxes.  C.S.H.J.R. 31 adds mineral interest to
that exemption.  C.S.H.J.R 31 also changes the election date from
November 5, 1996 to November 7, 1995.







SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance to the rules and a public
hearing was held on February 28, 1995.  Without objection, H.J.R.
31 was left pending before the committee.

On March 7, 1995, the committee approved C.S.H.J.R. 31 by Wolens
without objection.  By a record vote of 8 ayes, 0 nays, 0 present
not voting and 3 absent, the committee voted to report H.J.R. 31 as
substituted to the House with the recommendation that it do pass.

     Testimony received in favor of the bill:
           W. Kenneth Nolan, representing Dallas Central Appraisal
           District
           George H. Moff, representing himself
           David Luther, representing himself
           Bill Allaway, representing Texas Assn. of Taxpayers

     Neutral testimony on the bill:
           Frank Battle, representing the Texas Assn. of School
           Boards