74R7392 SMH-D By Hartnett H.B. No. 366 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the exemption from ad valorem taxation of 1-3 income-producing tangible personal property and mineral interests 1-4 having a value of less than a certain amount. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by 1-7 adding Sections 11.145 and 11.146 to read as follows: 1-8 Sec. 11.145. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY 1-9 HAVING VALUE OF LESS THAN $500. (a) A person is entitled to an 1-10 exemption from taxation of the tangible personal property the 1-11 person owns that is held or used for the production of income if 1-12 that property has a taxable value of less than $500. 1-13 (b) The exemption provided by Subsection (a) applies to each 1-14 separate taxing unit in which a person holds or uses tangible 1-15 personal property for the production of income, and, for the 1-16 purposes of Subsection (a), all property in each taxing unit is 1-17 aggregated to determine taxable value. 1-18 Sec. 11.146. MINERAL INTEREST HAVING VALUE OF LESS THAN 1-19 $500. (a) A person is entitled to an exemption from taxation of a 1-20 mineral interest the person owns if the interest has a taxable 1-21 value of less than $500. 1-22 (b) The exemption provided by Subsection (a) applies to each 1-23 separate taxing unit in which a person owns a mineral interest and, 1-24 for the purposes of Subsection (a), all mineral interests in each 2-1 taxing unit are aggregated to determine value. 2-2 SECTION 2. Section 11.43(a), Tax Code, is amended to read as 2-3 follows: 2-4 (a) To receive an exemption, a person claiming the 2-5 exemption, other than an exemption authorized by Section 11.11, 2-6 11.12, 11.14, 11.145, 11.146, 11.15, 11.16, or 11.161 of this code, 2-7 must apply for the exemption. To apply for an exemption, a person 2-8 must file an exemption application form with the chief appraiser 2-9 for each appraisal district in which the property subject to the 2-10 claimed exemption has situs. 2-11 SECTION 3. This Act takes effect January 1, 1996, but only 2-12 if the constitutional amendment proposed by the 74th Legislature, 2-13 Regular Session, 1995, authorizing the legislature to exempt from 2-14 ad valorem taxation personal property and mineral interests having 2-15 a value insufficient to recover the administrative costs of 2-16 collecting the taxes is approved by the voters. If that amendment 2-17 is not approved by the voters, this Act has no effect. 2-18 SECTION 4. The importance of this legislation and the 2-19 crowded condition of the calendars in both houses create an 2-20 emergency and an imperative public necessity that the 2-21 constitutional rule requiring bills to be read on three several 2-22 days in each house be suspended, and this rule is hereby suspended.