By Hilbert                                            H.B. No. 2574
         76R12186 JD-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to allocation for ad valorem tax purposes of the value of
 1-3     certain business aircraft used outside this state.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 21, Tax Code, is amended by adding
 1-6     Section 21.055 to read as follows:
 1-7           Sec. 21.055.  BUSINESS AIRCRAFT.  (a)  If an aircraft is used
 1-8     for a business purpose of the owner, is taxable by a taxing unit,
 1-9     and is used continually outside this state, whether regularly or
1-10     irregularly, the appraisal office shall allocate to this state the
1-11     portion of the fair market value of the aircraft that fairly
1-12     reflects its use in this state.  The appraisal office shall not
1-13     allocate to this state the portion of the total market value of the
1-14     aircraft that fairly reflects its use beyond the boundaries of this
1-15     state.
1-16           (b)  The allocable portion of the total fair market value of
1-17     an aircraft described by Subsection (a)  is presumed to be the fair
1-18     market value of the aircraft multiplied by a fraction, the
1-19     numerator of which is the number of departures by the aircraft from
1-20     a location in this state during the year preceding the tax year and
1-21     the denominator of which is the total number of departures by the
1-22     aircraft from all locations during the year preceding the tax year.
1-23           (c)  This section does not apply to a commercial aircraft as
1-24     defined by Section 21.05.
 2-1           SECTION 2.  The importance of this legislation and the
 2-2     crowded condition of the calendars in both houses create an
 2-3     emergency and an imperative public necessity that the
 2-4     constitutional rule requiring bills to be read on three several
 2-5     days in each house be suspended, and this rule is hereby suspended,
 2-6     and that this Act take effect and be in force from and after its
 2-7     passage, and it is so enacted.