1-1  By:  Hartnett (Senate Sponsor - Brown)                 H.B. No. 366
    1-2        (In the Senate - Received from the House April 18, 1995;
    1-3  April 19, 1995, read first time and referred to Committee on
    1-4  Finance; May 16, 1995, reported favorably by the following vote:
    1-5  Yeas 8, Nays 0; May 16, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to the exemption from ad valorem taxation of
    1-9  income-producing tangible personal property and mineral interests
   1-10  having a value of less than a certain amount.
   1-11        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-12        SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
   1-13  adding Sections 11.145 and 11.146 to read as follows:
   1-14        Sec. 11.145.  INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY
   1-15  HAVING VALUE OF LESS THAN $500.   (a)  A person is entitled to an
   1-16  exemption from taxation of the tangible personal property the
   1-17  person owns that is held or used for the production of income if
   1-18  that property has a taxable value of less than $500.
   1-19        (b)  The exemption provided by Subsection (a) applies to each
   1-20  separate taxing unit in which a person holds or uses tangible
   1-21  personal property for the production of income, and, for the
   1-22  purposes of Subsection (a), all property in each taxing unit is
   1-23  aggregated to determine taxable value.
   1-24        Sec. 11.146.  MINERAL INTEREST HAVING VALUE OF LESS THAN
   1-25  $500.  (a)  A person is entitled to an exemption from taxation of a
   1-26  mineral interest the person owns if the interest has a taxable
   1-27  value of less than $500.
   1-28        (b)  The exemption provided by Subsection (a) applies to each
   1-29  separate taxing unit in which a person owns a mineral interest and,
   1-30  for the purposes of Subsection (a), all mineral interests in each
   1-31  taxing unit are aggregated to determine value.
   1-32        SECTION 2.  Section 11.43(a), Tax Code, is amended to read as
   1-33  follows:
   1-34        (a)  To receive an exemption, a person claiming the
   1-35  exemption, other than an exemption authorized by Section 11.11,
   1-36  11.12, 11.14, 11.145, 11.146, 11.15, 11.16, or 11.161 of this code,
   1-37  must apply for the exemption.  To apply for an exemption, a person
   1-38  must file an exemption application form with the chief appraiser
   1-39  for each appraisal district in which the property subject to the
   1-40  claimed exemption has situs.
   1-41        SECTION 3.  This Act takes effect January 1, 1996, but only
   1-42  if the constitutional amendment proposed by the 74th Legislature,
   1-43  Regular Session, 1995, authorizing the legislature to exempt from
   1-44  ad valorem taxation personal property and mineral interests having
   1-45  a value insufficient to recover the administrative costs of
   1-46  collecting the taxes is approved by the voters.  If that amendment
   1-47  is not approved by the voters, this Act has no effect.
   1-48        SECTION 4.  The importance of this legislation and the
   1-49  crowded condition of the calendars in both houses create an
   1-50  emergency and an imperative public necessity that the
   1-51  constitutional rule requiring bills to be read on three several
   1-52  days in each house be suspended, and this rule is hereby suspended.
   1-53                               * * * * *