By Rusling, Averitt, et al.                          H.J.R. No. 107
                                  A JOINT RESOLUTION
    1-1  proposing a constitutional amendment relating to the exemption from
    1-2  ad valorem taxation by certain taxing units of certain tangible
    1-3  personal property held at a location for not more than a specified
    1-4  period.
    1-5        BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Article VIII, Texas Constitution, is amended by
    1-7  adding Section 1-m to read as follows:
    1-8        Sec. 1-m.  (a)  To promote economic development in this
    1-9  state, goods, wares, merchandise, other tangible personal property,
   1-10  and ores, other than oil, natural gas, and other petroleum
   1-11  products, are exempt from ad valorem taxation if:
   1-12              (1)  the property is acquired in or imported into this
   1-13  state to be forwarded to another location in this state or outside
   1-14  this state, whether the intention to forward the property to
   1-15  another location in this state or outside this state is formed or
   1-16  the destination to which the property is forwarded is specified
   1-17  when the property is acquired in or imported into this state;
   1-18              (2)  the property is detained at a location in this
   1-19  state for assembling, storing, manufacturing, processing, or
   1-20  fabricating purposes by the person who acquired or imported the
   1-21  property;
   1-22              (3)  the property is transported to another location in
   1-23  this state or outside of this state not later than 270 days after
    2-1  the date the person acquired or imported the property in this
    2-2  state; and
    2-3              (4)  the exemption is adopted by the governing body of
    2-4  a taxing unit.
    2-5        (b)  Subsection (a) of this section does not apply to a
    2-6  school district created under Section 3, Article VII, Texas
    2-7  Constitution, other than a junior college district.
    2-8        (c)  For purposes of this section:
    2-9              (1)  tangible personal property includes aircraft and
   2-10  aircraft parts;
   2-11              (2)  property imported into this state includes
   2-12  property brought into this state;
   2-13              (3)  property forwarded to another location in this
   2-14  state or outside this state includes property transported to
   2-15  another location in this state or outside this state or to be
   2-16  affixed to an aircraft to be transported to another location in
   2-17  this state or outside this state; and
   2-18              (4)  property detained at a location in this state for
   2-19  assembling, storing, manufacturing, processing, or fabricating
   2-20  purposes includes property, aircraft, or aircraft parts brought
   2-21  into this state or acquired in this state and used by the person
   2-22  who acquired the property, aircraft, or aircraft parts in or who
   2-23  brought the property, aircraft, or aircraft parts into this state
   2-24  for the purpose of repair or maintenance of aircraft operated by a
   2-25  certificated air carrier.
    3-1        (d)  If the governing body of a taxing unit to which
    3-2  Subsection (a) of this section applies adopts the exemption
    3-3  authorized by this section, the governing body may provide that the
    3-4  exemption applies in the tax year in which the exemption is adopted
    3-5  and each subsequent tax year, or that the exemption applies in each
    3-6  tax year that begins on or after January 1 of the tax year in which
    3-7  the exemption is adopted.
    3-8        SECTION 2.  Article VIII, Texas Constitution, is amended by
    3-9  adding Section 1-m-1 to read as follows:
   3-10        Sec. 1-m-1.  The constitutional amendment proposed by the
   3-11  74th Legislature, Regular Session, 1995, to provide for the
   3-12  exemption from ad valorem taxation by certain taxing units of
   3-13  certain tangible personal property held at a location for not more
   3-14  than a specified period, takes effect January 1, 1996.  This
   3-15  section expires January 1, 1997.
   3-16        SECTION 3.  This proposed constitutional amendment shall be
   3-17  submitted to the voters at an election to be held November 7, 1995.
   3-18  The ballot shall be printed to permit voting for or against the
   3-19  proposition:  "The constitutional amendment relating to the
   3-20  promotion of equal tax treatment for products produced, acquired,
   3-21  and distributed in the State of Texas by extending the exemption
   3-22  from ad valorem taxation of certain tangible personal property held
   3-23  at a location for not more than a specified period."