AN ACT
 1-1     relating to appraisal of heavy equipment for ad valorem tax
 1-2     purposes.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subdivision (2), Subsection (a), Section 23.1241,
 1-5     Tax Code, is amended to read as follows:
 1-6                 (2)  "Dealer's heavy equipment inventory" means all
 1-7     items of heavy equipment that a dealer holds for sale at retail.
 1-8     The term includes items of heavy equipment that are leased or
 1-9     rented but subject to a purchase option by the lessee or renter.
1-10           SECTION 2.  Subdivision (7), Subsection (a), Section 23.1241,
1-11     Tax Code, is amended to read as follows:
1-12                 (7)  "Sales price" means:
1-13                       (A)  the total amount of money paid or to be paid
1-14     to a dealer for the purchase of an item of heavy equipment; or
1-15                       (B)  for a lease or rental with an option to
1-16     purchase, the total amount of the lease or rental payments plus any
1-17     final consideration, excluding interest.
1-18           SECTION 3.  Subsection (b), Section 23.1241, Tax Code, is
1-19     amended to read as follows:
1-20           (b)  For the purpose of the computation of property tax:
1-21                 (1)  [,]  the market value of a dealer's heavy
1-22     equipment inventory on January 1 is the total annual sales, less
1-23     sales to dealers, fleet transactions, and subsequent sales, for the
1-24     12-month period corresponding to the preceding tax year, divided by
 2-1     12; and
 2-2                 (2)  a sale is considered to occur when possession of
 2-3     an item of heavy equipment is transferred from the dealer to the
 2-4     purchaser.
 2-5           SECTION 4.  This Act takes effect January 1, 2000, and
 2-6     applies to the appraisal of heavy equipment for ad valorem tax
 2-7     purposes for a tax year that begins on or after that date.
 2-8           SECTION 5.  The importance of this legislation and the
 2-9     crowded condition of the calendars in both houses create an
2-10     emergency and an imperative public necessity that the
2-11     constitutional rule requiring bills to be read on three several
2-12     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 1435 passed the Senate on
         April 29, 1999, by the following vote:  Yeas 30, Nays 0; and that
         the Senate concurred in House amendment on May 28, 1999, by a
         viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1435 passed the House, with
         amendment, on May 26, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor