By Craddick H.J.R. No. 39
76R3709 JD-D
A JOINT RESOLUTION
1-1 proposing a constitutional amendment exempting personal property in
1-2 this state from ad valorem taxation.
1-3 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1, Article VIII, Texas Constitution, is
1-5 amended to read as follows:
1-6 Sec. 1. (a) Taxation shall be equal and uniform.
1-7 (b) All real property [and tangible personal property] in
1-8 this State, unless exempt as required or permitted by this
1-9 Constitution, whether owned by natural persons or corporations,
1-10 other than municipal, shall be taxed in proportion to its value,
1-11 which shall be ascertained as may be provided by law. All personal
1-12 property in this State is exempt from ad valorem taxation, except
1-13 as provided by Subsection (g) of this section.
1-14 (c) The Legislature may [provide for the taxation of
1-15 intangible property and may also] impose occupation taxes, both
1-16 upon natural persons and upon corporations, other than municipal,
1-17 doing any business in this State. Subject to the restrictions of
1-18 Section 24 of this article, it may also tax incomes of both natural
1-19 persons and corporations other than municipal. Persons engaged in
1-20 mechanical and agricultural pursuits shall never be required to pay
1-21 an occupation tax.
1-22 (d) [The Legislature by general law shall exempt from ad
1-23 valorem taxation household goods not held or used for the
1-24 production of income and personal effects not held or used for the
2-1 production of income. The Legislature by general law may exempt
2-2 from ad valorem taxation:]
2-3 [(1) all or part of the personal property homestead of
2-4 a family or single adult, "personal property homestead" meaning
2-5 that personal property exempt by law from forced sale for debt; and]
2-6 [(2) subject to Subsections (e) and (g) of this
2-7 section, all other tangible personal property, except structures
2-8 which are personal property and are used or occupied as residential
2-9 dwellings and except property held or used for the production of
2-10 income.]
2-11 [(e) The governing body of a political subdivision, other
2-12 than a county education district, may provide for the taxation of
2-13 all property exempt under a law adopted under Subdivision (2) of
2-14 Subsection (d) of this section and not exempt from ad valorem
2-15 taxation by any other law. In the manner provided by law, the
2-16 voters of a county education district at an election held for that
2-17 purpose may provide for the taxation of all property exempt under a
2-18 law adopted under Subdivision (2) of Subsection (d) of this section
2-19 and not exempt from ad valorem taxation by any other law.]
2-20 [(f)] The occupation tax levied by any county, city or town
2-21 for any year on persons or corporations pursuing any profession or
2-22 business, shall not exceed one half of the tax levied by the State
2-23 for the same period on such profession or business.
2-24 [(g) The Legislature may exempt from ad valorem taxation
2-25 tangible personal property that is held or used for the production
2-26 of income and has a taxable value of less than the minimum amount
2-27 sufficient to recover the costs of the administration of the taxes
3-1 on the property, as determined by or under the general law granting
3-2 the exemption.]
3-3 (e) [(h)] The Legislature may exempt from ad valorem
3-4 taxation a mineral interest that has a taxable value of less than
3-5 the minimum amount sufficient to recover the costs of the
3-6 administration of the taxes on the interest, as determined by or
3-7 under the general law granting the exemption.
3-8 (f) [(i)] Notwithstanding Subsections (a) and (b) of this
3-9 section, the Legislature by general law may limit the maximum
3-10 average annual percentage increase in the appraised value of
3-11 residence homesteads for ad valorem tax purposes to 10 percent, or
3-12 a greater percentage, for each year since the most recent tax
3-13 appraisal. A limitation on appraisal increases authorized by this
3-14 subsection:
3-15 (1) takes effect as to a residence homestead on the
3-16 later of the effective date of the law imposing the limitation or
3-17 January 1 of the tax year following the first tax year the owner
3-18 qualifies the property for an exemption under Section 1-b of this
3-19 article; and
3-20 (2) expires on January 1 of the first tax year that
3-21 neither the owner of the property when the limitation took effect
3-22 nor the owner's spouse or surviving spouse qualifies for an
3-23 exemption under Section 1-b of this article.
3-24 (g) If before November 2, 1999, an ad valorem tax on
3-25 personal property is pledged for the payment of a debt, the
3-26 appropriate tax authorities may continue to levy and collect the
3-27 tax against that personal property at the same rate as the pledged
4-1 tax until the debt is discharged, if cessation of the levy and
4-2 collection of the tax would impair the obligation of the contract
4-3 by which the debt was created. This subsection applies to personal
4-4 property that was taxable under the law in effect on January 1,
4-5 1999, but that became exempt under Subsection (b) of this section
4-6 on January 1, 2000, as a result of the amendment of this section
4-7 adopted by the voters in 1999 to exempt all personal property from
4-8 ad valorem taxation.
4-9 SECTION 2. Section 1-l, Article VIII, Texas Constitution, is
4-10 amended to read as follows:
4-11 Sec. 1-l. (a) The legislature by general law may exempt
4-12 from ad valorem taxation all or part of real [and personal]
4-13 property used, constructed, acquired, or installed wholly or partly
4-14 to meet or exceed rules or regulations adopted by any environmental
4-15 protection agency of the United States, this state, or a political
4-16 subdivision of this state for the prevention, monitoring, control,
4-17 or reduction of air, water, or land pollution.
4-18 (b) This section applies to real [and personal] property
4-19 used as a facility, device, or method for the control of air,
4-20 water, or land pollution that would otherwise be taxable for the
4-21 first time on or after January 1, 1994.
4-22 (c) This section does not authorize the exemption from ad
4-23 valorem taxation of real [or personal] property that was subject to
4-24 a tax abatement agreement executed before January 1, 1994.
4-25 SECTION 3. Section 5, Article VIII, Texas Constitution, is
4-26 amended to read as follows:
4-27 Sec. 5. All real property of railroad companies, of whatever
5-1 description, lying or being within the limits of any city or
5-2 incorporated town within this State, shall bear its proportionate
5-3 share of municipal taxation, and if any such real property shall
5-4 not have been heretofore rendered, the authorities of the city or
5-5 town within which it lies, shall have power to require its
5-6 rendition, and collect the usual municipal tax thereon, as on other
5-7 real property lying within said municipality.
5-8 SECTION 4. Section 8, Article VIII, Texas Constitution, is
5-9 amended to read as follows:
5-10 Sec. 8. All real property of railroad companies shall be
5-11 assessed, and the taxes collected in the several counties in which
5-12 said real property is situated, including so much of the roadbed
5-13 and fixtures as shall be in each county. [The rolling stock may be
5-14 assessed in gross in the county where the principal office of the
5-15 company is located, and the county tax paid upon it shall be
5-16 apportioned as provided by general law in proportion to the
5-17 distance such road may run through any such county, among the
5-18 several counties through which the road passes, as a part of their
5-19 tax assets.]
5-20 SECTION 5. Article VIII, Texas Constitution, is amended by
5-21 adding the following temporary provision:
5-22 TEMPORARY PROVISION. The constitutional amendment proposed
5-23 by the 76th Legislature, Regular Session, 1999, to exempt all
5-24 personal property from ad valorem taxation takes effect January 1,
5-25 2000, and applies only to taxes imposed on or after that date.
5-26 This temporary provision expires January 1, 2002.
5-27 SECTION 6. Sections 1-i, 1-j, 19, and 19a, Article VIII,
6-1 Texas Constitution, are repealed.
6-2 SECTION 7. This proposed constitutional amendment shall be
6-3 submitted to the voters at an election to be held November 2, 1999.
6-4 The ballot shall be printed to permit voting for or against the
6-5 proposition: "The constitutional amendment exempting all personal
6-6 property in this state from ad valorem taxation."