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.