HBA-RBT H.J.R. 94 76(R) BILL ANALYSIS Office of House Bill AnalysisH.J.R. 94 By: Janek Ways and Means 4/23/1999 Introduced BACKGROUND AND PURPOSE Article VIII, Section 1-j of the Texas Constitution allows counties to establish freeport zones, in which counties exempt from ad valorem taxation all or part of the value of certain personal property located in the county temporarily for assembling, manufacturing or other commercial purposes, or to exempt that property from taxation if the property is located within a defined zone established by the commissioners court. As proposed, H.J.R. 94 requires the submission to the voters of a constitutional amendment allowing the commissioners court of a county with a population of 2.8 million or more to establish a freeport zone within the county. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 1-j, Article VIII, Texas Constitution, by adding new Subsections (c)(e) and redesignating existing Subsection (c) as Subsection (f), as follows: (c) Authorizes the commissioners court of a county with a population of 2.8 million or more that previously acted under Subsection (b) of this section to tax personal property described by Subsection (a) of this section by official action to exempt from taxation by that county all or a specified percentage of the value of the property. Authorizes the commissioners court of a county that exempts a specified percentage of the value of the property from taxation under this subsection by official action to subsequently exempt from taxation all or a greater percentage of the value of that property. Prohibits the commissioners court from subsequently reducing the percentage of the value of the property exempted under this subsection or rescinding or repealing an exemption granted under this subsection. (d) Authorizes the commissioners court of a county with a population of 2.8 million or more that previously acted under Subsection (b) of this section to tax personal property described by Subsection (a) of this section by official action to designate any area in the county as a freeport zone and exempt from taxation all or a specified percentage of the value of personal property described by Subsection (a) of this section that is located in that zone. (e) Provides that an action taken under Subsection (c) or (d) of this section is effective on January 1 of the year following the year in which the action is taken, unless the commissioners court by official action provides that the action is effective as of January 1 of the year in which the action is taken. (f) Redesignated from Subsection (c). SECTION 2. Requires this proposed constitutional amendment to be submitted to the voters at an election to be held November 2, 1999. Sets forth the language of the ballot.