74R11788 JD-D
By Rusling, Averitt, et al. H.J.R. No. 107
Substitute the following for H.J.R. No. 107:
By Craddick C.S.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; and
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.
2-3 (b) Subsection (a) of this section does not apply to a
2-4 school district created under Section 3, Article VII, Texas
2-5 Constitution, other than a junior college district.
2-6 (c) For purposes of this section:
2-7 (1) tangible personal property includes aircraft and
2-8 aircraft parts;
2-9 (2) property imported into this state includes
2-10 property brought into this state;
2-11 (3) property forwarded to another location in this
2-12 state or outside this state includes property transported to
2-13 another location in this state or outside this state or to be
2-14 affixed to an aircraft to be transported to another location in
2-15 this state or outside this state; and
2-16 (4) property detained at a location in this state for
2-17 assembling, storing, manufacturing, processing, or fabricating
2-18 purposes includes property, aircraft, or aircraft parts brought
2-19 into this state or acquired in this state and used by the person
2-20 who acquired the property, aircraft, or aircraft parts in or who
2-21 brought the property, aircraft, or aircraft parts into this state
2-22 for the purpose of repair or maintenance of aircraft operated by a
2-23 certificated air carrier.
2-24 (d) The governing body of a taxing unit may impose an ad
2-25 valorem tax on tangible personal property that is otherwise exempt
3-1 from taxation under Subsection (a) of this section if a majority of
3-2 the votes cast at an election called in the taxing unit for that
3-3 purpose and held before September 1, 1996, favor the taxation of
3-4 that property. The governing body of a taxing unit may call an
3-5 election to be held on an election date authorized by general law
3-6 for purposes of determining whether the taxing unit will tax
3-7 property as permitted by this subsection. If taxation of exempt
3-8 property is approved at the election, the property is taxable in
3-9 each tax year that begins on or after January 1, 1996, unless the
3-10 property is subsequently exempted from taxation in the manner
3-11 provided by this section. The governing body of a taxing unit that
3-12 imposes a tax on tangible personal property that is otherwise
3-13 exempt from taxation under Subsection (a) of this section may
3-14 subsequently exempt that property from taxation by the taxing unit.
3-15 If the governing body of the taxing unit subsequently adopts the
3-16 exemption, the exemption applies in each tax year that begins on or
3-17 after January 1 of the year following the year in which the
3-18 exemption is adopted.
3-19 SECTION 2. Section 1-j, Article VIII, Texas Constitution, is
3-20 repealed.
3-21 SECTION 3. Article VIII, Texas Constitution, is amended by
3-22 adding Section 1-m-1 to read as follows:
3-23 Sec. 1-m-1. The constitutional amendment proposed by the
3-24 74th Legislature, Regular Session, 1995, to provide for the
3-25 exemption from ad valorem taxation by certain taxing units of
4-1 certain tangible personal property held at a location for not more
4-2 than a specified period, and to repeal Section 1-j, Article VIII,
4-3 Texas Constitution, takes effect January 1, 1996. This section
4-4 expires January 1, 1997.
4-5 SECTION 4. This proposed constitutional amendment shall be
4-6 submitted to the voters at an election to be held November 7, 1995.
4-7 The ballot shall be printed to permit voting for or against the
4-8 proposition: "The constitutional amendment relating to the
4-9 promotion of equal tax treatment for products produced, acquired,
4-10 and distributed in the State of Texas by extending the exemption
4-11 from ad valorem taxation of certain tangible personal property held
4-12 at a location for not more than a specified period."