SRC-JBJ S.J.R. 39 76(R)   BILL ANALYSIS


Senate Research Center   S.J.R. 39
76R8906 JD-DBy: Duncan
Finance
4/9/1999
As Filed


DIGEST 

Currently, Texas law does not provide an ad valorem taxation exemption to
certain tangible personal property held temporarily for commercial
purposes.  Through recent trade liberalization, warehouses, which store the
personal property, became a significant component of the distribution of
goods between the United States, Canada, and Mexico.  Removing the ad
valorem tax on warehouses may allow for Texas warehouses to become more
competitive with other states that do not impose a similar tax on the
facilities.  S.J.R. 39 would propose a constitutional amendment that
exempts certain personal property from ad valorem taxation. 

PURPOSE

As proposed, S.J.R. 39 requires the submission to the voters of a
constitutional amendment to exempt certain personal property from ad
valorem 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 Article VIII, Texas Constitution, by adding Section 1-n,
as follows: 

Sec. 1-n.  Exempts from ad valorem taxation certain tangible personal
property held temporarily for assembling, manufacturing, processing, or
other commercial purposes.  Sets forth the types of property affected by
this section.  Authorizes the property owner to apply for the exemption.
Provides that the owner is not entitled to receive the exemption authorized
by Section 1-j of this article for the same property.  Effective date:
January 1, 2000.  Provides that this subsection expires January 1, 2001. 

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.