SRC-JXG S.J.R. 21 76(R)BILL ANALYSIS


Senate Research CenterS.J.R. 21
By: Carona
Finance
6/29/1999
Enrolled


DIGEST 

Currently, Texas law requires ad valorem taxes to be assessed on personal
property. Taxing entities may apply ad valorem taxes to personally leased
motor vehicles. Leasing accounts for nearly 10 percent of all new vehicle
deliveries. S.J.R. 21 will provide an ad valorem tax exemption on
personally leased vehicles. 

PURPOSE

As enrolled, S.J.R. 21 requires the submission to the voters of a
constitutional amendment to provide an exemption for vehicles from ad
valorem taxes. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Sections 1(d) and (e), Article VIII, Texas Constitution,
to authorize the legislature by general law to exempt from ad valorem
taxation, and subject to Subsection (e) of this section, a leased motor
vehicle that is not held primarily for the production of income by the
lessee and that otherwise qualifies under general law for exemption.
Authorizes the legislature by general law to provide limitations to the
application of this subsection to the taxation of vehicles exempted under
the authority of Subsection (d)(3) of this section. Deletes text regarding
voters at an election providing taxation for all property exempt under law.
Makes conforming and nonsubstantive changes.  


SECTION 2. Requires this proposed constitutional amendment to be submitted
to the voters at an election to be held on November 2, 1999. Sets forth the
required language for the ballot.