By Armbrister                                         S.C.R. No. 48
       74R1568 JD-D
                                  A JOINT RESOLUTION
    1-1  proposing a constitutional amendment relating to the exemption from
    1-2  ad valorem taxation of certain leased motor vehicles not held for
    1-3  the production of income.
    1-4        BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Article VIII, Section 1, Subsections (d) and (e),
    1-6  of the Texas Constitution are amended to read as follows:
    1-7        (d)  The Legislature by general law shall exempt from ad
    1-8  valorem taxation household goods not held or used for the
    1-9  production of income and personal effects not held or used for the
   1-10  production of income.  The Legislature by general law may exempt
   1-11  from ad valorem taxation:
   1-12              (1)  all or part of the personal property homestead of
   1-13  a family or single adult, "personal property homestead" meaning
   1-14  that personal property exempt by law from forced sale for debt;
   1-15  <and>
   1-16              (2)  subject to Subsection (e) of this section, all
   1-17  other tangible personal property, except structures which are
   1-18  personal property and are used or occupied as residential dwellings
   1-19  and except property held or used for the production of income; and
   1-20              (3)  subject to Subsection (e) of this section, a
   1-21  leased motor vehicle that is not held primarily for the production
   1-22  of income by the lessee, is used primarily for activities that do
   1-23  not involve production of income, and that otherwise qualifies
    2-1  under general law for exemption.
    2-2        (e)  The governing body of a political subdivision<, other
    2-3  than a county education district,> may provide for the taxation of
    2-4  all property exempt under a law adopted under Subdivision (2) or
    2-5  (3) of Subsection (d) of this section and not exempt from ad
    2-6  valorem taxation by any other law.  The Legislature by general law
    2-7  may provide limitations to the application of this subsection to
    2-8  the taxation of vehicles exempted under the authority of
    2-9  Subdivision (3) of Subsection (d) of this section.  <In the manner
   2-10  provided by law, the voters of a county education district at an
   2-11  election held for that purpose may provide for the taxation of all
   2-12  property exempt under a law adopted under Subdivision (2) of
   2-13  Subsection (d) of this section and not exempt from ad valorem
   2-14  taxation by any other law.>
   2-15        SECTION 2.  This proposed constitutional amendment shall be
   2-16  submitted to the voters at an election to be held November 7, 1995.
   2-17  The ballot shall be printed to permit voting for or against the
   2-18  proposition:  "The constitutional amendment to authorize the
   2-19  legislature to exempt from ad valorem taxation certain leased motor
   2-20  vehicles not held or used primarily to produce income."