By Elkins                                             H.B. No. 2404
       74R1599 JD-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the exemption from ad valorem taxation of certain
    1-3  leased motor vehicles.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
    1-6  adding Section 11.25 to read as follows:
    1-7        Sec. 11.25.  LEASED MOTOR VEHICLES.  (a)  The owner of a
    1-8  motor vehicle that is subject to a lease is entitled to an
    1-9  exemption from taxation of the motor vehicle if:
   1-10              (1)  the lessee does not hold the vehicle for the
   1-11  production of income; and
   1-12              (2)  the vehicle is used primarily for activities that
   1-13  do not involve production of income.
   1-14        (b)  In this section:
   1-15              (1)  "Lease" has the meaning assigned by Section
   1-16  152.001(6).
   1-17              (2)  "Motor vehicle" means a passenger car or truck
   1-18  with a shipping weight of not more than 6,000 pounds.
   1-19        (c)  For purposes of this section, a vehicle is used
   1-20  primarily for activities that do not involve production of income
   1-21  if more than 50 percent of the use of the vehicle is for those
   1-22  activities.
   1-23        SECTION 2.  This Act takes effect January 1, 1996, but only
   1-24  if the constitutional amendment proposed by the 74th Legislature,
    2-1  Regular Session, 1995, relating to the exemption from ad valorem
    2-2  taxation of certain leased motor vehicles is approved by the
    2-3  voters.  If that amendment is not approved by the voters, this Act
    2-4  has no effect.
    2-5        SECTION 3.  The importance of this legislation and the
    2-6  crowded condition of the calendars in both houses create an
    2-7  emergency and an imperative public necessity that the
    2-8  constitutional rule requiring bills to be read on three several
    2-9  days in each house be suspended, and this rule is hereby suspended.