1-1     By:  Hilbert (Senate Sponsor - Brown)                 H.B. No. 2574
 1-2           (In the Senate - Received from the House May 13, 1999;
 1-3     May 14, 1999, read first time and referred to Committee on
 1-4     Jurisprudence; May 14, 1999, reported favorably by the following
 1-5     vote:  Yeas 3, Nays 0; May 14, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to allocation for ad valorem tax purposes of the value of
 1-9     certain business aircraft used outside this state.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Chapter 21, Tax Code, is amended by adding
1-12     Section 21.055 to read as follows:
1-13           Sec. 21.055.  BUSINESS AIRCRAFT.  (a)  If an aircraft is used
1-14     for a business purpose of the owner, is taxable by a taxing unit,
1-15     and is used continually outside this state, whether regularly or
1-16     irregularly, the appraisal office shall allocate to this state the
1-17     portion of the fair market value of the aircraft that fairly
1-18     reflects its use in this state.  The appraisal office shall not
1-19     allocate to this state the portion of the total market value of the
1-20     aircraft that fairly reflects its use beyond the boundaries of this
1-21     state.
1-22           (b)  The allocable portion of the total fair market value of
1-23     an aircraft described by Subsection (a)  is presumed to be the fair
1-24     market value of the aircraft multiplied by a fraction, the
1-25     numerator of which is the number of departures by the aircraft from
1-26     a location in this state during the year preceding the tax year and
1-27     the denominator of which is the total number of departures by the
1-28     aircraft from all locations during the year preceding the tax year.
1-29           (c)  This section does not apply to a commercial aircraft as
1-30     defined by Section 21.05.
1-31           SECTION 2.  The importance of this legislation and the
1-32     crowded condition of the calendars in both houses create an
1-33     emergency and an imperative public necessity that the
1-34     constitutional rule requiring bills to be read on three several
1-35     days in each house be suspended, and this rule is hereby suspended,
1-36     and that this Act take effect and be in force from and after its
1-37     passage, and it is so enacted.
1-38                                  * * * * *