SRC-PNG C.S.S.J.R. 36 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.J.R. 36
By: Cain
Finance
4/26/1999
Committee Report (Substituted)


DIGEST 

Currently, under Texas law, a person is required to render, for purposes of
ad valorem taxation, all tangible personal property used for the production
of income.  A recent court case ruled that the renditions requirement was
merely directory and not mandatory.  As a result, tax consultants are
advising their clients that rendition of business personal property is not
required in Texas.  This bill would require the submission to the voters of
a constitutional amendment to authorize an exemption or other relief from
ad valorem taxation for commercial tangible personal property if the
property is voluntarily rendered for taxation. 

PURPOSE

As proposed, C.S.S.J.R. 36 requires the submission to the voters of a
constitutional amendment to authorize an exemption or other relief from ad
valorem taxation for commercial tangible personal property if the property
is voluntarily rendered for taxation. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1, Article VIII, Texas Constitution, by adding
Subsection (j), to authorize the legislature to exempt from ad valorem
taxation $10,000 or a lesser amount of the market value of tangible
personal property held or used for the production of income or provide
other tax relief of the property is voluntarily rendered for taxation. 

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
required language for the ballot. 

SUMMARY OF COMMITTEE CHANGES

SECTION 1. Amends Section 1(j), Article VIII, Texas Constitution, to
authorize the legislature to exempt from ad valorem taxation $10,000 or a
lesser amount of the market value, rather than all or part of the market
value, of tangible personal property held or used for the production of
income or provide other tax relief of the property is voluntarily rendered
for taxation.