By Janek                                              H.B. No. 2999
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the ad valorem taxation of freeport goods.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 11.251, Tax Code, is amended by adding
 1-5     Subsections (l) and (m) to read as follows:
 1-6           (l)  For a taxing unit that before April 1, 1990, took action
 1-7     as provided by Section 1-j, Article VIII, Texas Constitution, to
 1-8     tax freeport goods, the governing body of the taxing unit by
 1-9     official action may:
1-10                 (1)  exempt from taxation by the taxing unit all or a
1-11     specified percentage of the value of freeport goods; or
1-12                 (2)  if the taxing unit is a county, establish a county
1-13     freeport zone in which a portion of the county is subject to the
1-14     exemption under Subdivision (1).
1-15           (m)  If the governing body grants a partial percentage
1-16     exemption under Subsection (l), the governing body may subsequently
1-17     exempt a greater percentage of the value of freeport goods or
1-18     exempt all of the value of freeport goods but may not reduce the
1-19     percentage of the value of freeport goods previously exempt from
1-20     taxation by the taxing unit.  The governing body may not rescind or
1-21     repeal an original or subsequent exemption granted under this
 2-1     subsection.  For a taxing unit that grants a partial percentage
 2-2     exemption under this section, the chief appraiser shall apply the
 2-3     applicable percentage to the appraised value of freeport goods in
 2-4     determining the portion of a property owner's inventory or other
 2-5     property that is exempt.  A full or partial percentage exemption or
 2-6     change in the amount of a partial percentage exemption adopted
 2-7     under this subsection takes effect on the next January 1 following
 2-8     the date of adoption unless the governing body provides that the
 2-9     exemption or change applies to taxes imposed in the tax year in
2-10     which the exemption or change is adopted.
2-11           SECTION 2.  This Act takes effect September 1, 1999.
2-12           SECTION 3.  The importance of this legislation and the
2-13     crowded condition of the calendars in both houses create an
2-14     emergency and an imperative public necessity that the
2-15     constitutional rule requiring bills to be read on three several
2-16     days in each house be suspended, and this rule is hereby suspended.