By Allen                                              H.B. No. 3246
         76R8928 JD-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to appraisal of heavy equipment for ad valorem tax
 1-3     purposes.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 23.1241(a)(2), Tax Code, is amended to
 1-6     read as follows:
 1-7                 (2)  "Dealer's heavy equipment inventory" means all
 1-8     items of heavy equipment that a dealer holds for sale at retail.
 1-9     The term includes items of heavy equipment that are leased but
1-10     subject to a purchase option by the lessee.
1-11           SECTION 2.  Section 23.1241(b), Tax Code, is amended to read
1-12     as follows:
1-13           (b)  For the purpose of the computation of property tax:
1-14                 (1)  [,]  the market value of a dealer's heavy
1-15     equipment inventory on January 1 is the total annual sales, less
1-16     sales to dealers, fleet transactions, and subsequent sales, for the
1-17     12-month period corresponding to the preceding tax year, divided by
1-18     12; and
1-19                 (2)  a sale is considered to occur when ownership of an
1-20     item of heavy equipment is transferred from the dealer to the
1-21     purchaser.
1-22           SECTION 3.  This Act takes effect January 1, 2000, and
1-23     applies to the appraisal of heavy equipment for ad valorem tax
1-24     purposes for a tax year that begins on or after that date.
 2-1           SECTION 4.  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.