By Duncan, et al.                                     S.B. No. 1435
         Substitute the following for S.B. No. 1435:
         By Heflin                                         C.S.S.B. No. 1435
                                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 or
1-10     rented but subject to a purchase option by the lessee or renter.
1-11           SECTION 2.  Section 23.1241(a)(7), Tax Code, is amended to
1-12     read as follows:
1-13                 (7)  "Sales price" means:
1-14                       (A)  the total amount of money paid or to be paid
1-15     to a dealer for the purchase of an item of heavy equipment; or
1-16                       (B)  for a lease or rental with an option to
1-17     purchase, the total amount of the lease or rental payments plus any
1-18     final consideration, excluding interest.
1-19           SECTION 3.  Section 23.1241(b), Tax Code, is amended to read
1-20     as follows:
1-21           (b)  For the purpose of the computation of property tax:
1-22                 (1)  [,]  the market value of a dealer's heavy
1-23     equipment inventory on January 1 is the total annual sales, less
 2-1     sales to dealers, fleet transactions, and subsequent sales, for the
 2-2     12-month period corresponding to the preceding tax year, divided by
 2-3     12; and
 2-4                 (2)  a sale is considered to occur when possession of
 2-5     an item of heavy equipment is transferred from the dealer to the
 2-6     purchaser.
 2-7           SECTION 3.  This Act takes effect January 1, 2000, and
 2-8     applies to the appraisal of heavy equipment for ad valorem tax
 2-9     purposes for a tax year that begins on or after that date.
2-10           SECTION 4.  The importance of this legislation and the
2-11     crowded condition of the calendars in both houses create an
2-12     emergency and an imperative public necessity that the
2-13     constitutional rule requiring bills to be read on three several
2-14     days in each house be suspended, and this rule is hereby suspended.