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 * * * * *