By Cain                                               S.B. No. 1462
         76R4491 SMH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the ad valorem taxation of tangible personal property
 1-3     held or used for the production of income.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
 1-6     adding Section 11.147 to read as follows:
 1-7           Sec. 11.147.  INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY
 1-8     RENDERED FOR TAXATION.  A person is entitled to an exemption from
 1-9     taxation by each taxing unit of $10,000 of the total appraised
1-10     value of all the tangible personal property the person owns:
1-11                 (1)  that is held or used for the production of income;
1-12                 (2)  that is taxable by the taxing unit; and
1-13                 (3)  with respect to which the person timely delivers a
1-14     rendition statement or property report as required by Chapter 22.
1-15           SECTION 2.  Section 11.43(a), Tax Code, is amended to read as
1-16     follows:
1-17           (a)  To receive an exemption, a person claiming the
1-18     exemption, other than an exemption authorized by Section 11.11,
1-19     11.12, 11.14, 11.145, 11.146, 11.147, 11.15, 11.16, 11.161, or
1-20     11.25 [of this code], must apply for the exemption.  To apply for
1-21     an exemption, a person must file an exemption application form with
1-22     the chief appraiser for each appraisal district in which the
1-23     property subject to the claimed exemption has situs.
1-24           SECTION 3.  Subchapter B, Chapter 22, Tax Code, is amended by
 2-1     adding Section 22.231 to read as follows:
 2-2           Sec. 22.231.  REQUIREMENT TO DELIVER RENDITION STATEMENT OR
 2-3     PROPERTY REPORT; INJUNCTION.  (a)  A requirement under this chapter
 2-4     to deliver a rendition statement or property report to a chief
 2-5     appraiser is mandatory.
 2-6           (b)  If a person required by this chapter to deliver a
 2-7     rendition statement or property report to the chief appraiser fails
 2-8     to deliver the statement or report in the time required by this
 2-9     chapter, the chief appraiser may bring suit for an injunction
2-10     requiring the person to deliver the statement or report.
2-11           SECTION 4.  Section 41.43, Tax Code, is amended by amending
2-12     Subsection (a) and adding Subsection (d) to read as follows:
2-13           (a)  Except as provided by Subsection (d), in [In] a protest
2-14     authorized by Section 41.41(a)(1) [41.41(1)] or (2), the appraisal
2-15     district has the burden of establishing the value of the property
2-16     by a preponderance of the evidence presented at the hearing.  If
2-17     the appraisal district fails to meet that standard, the protest
2-18     shall be determined in favor of the property owner.
2-19           (d)  If the property owner failed to timely deliver a
2-20     rendition statement or property report for the property that is the
2-21     subject of the protest as required by Chapter 22:
2-22                 (1)  the property owner has the burden of establishing
2-23     the value of the property by a preponderance of the evidence
2-24     presented at the hearing; and
2-25                 (2)  if the  property owner fails to meet the standard
2-26     provided by Subdivision (1), the protest shall be determined in
2-27     favor of the appraisal district.
 3-1           SECTION 5.  Section 42.29, Tax Code, is amended by adding
 3-2     Subsection (c) to read as follows:
 3-3           (c)  Notwithstanding Subsection (a), a property owner may not
 3-4     be awarded attorney's fees if the property owner failed to timely
 3-5     deliver a rendition statement or property report as required by
 3-6     Chapter 22.
 3-7           SECTION 6.  (a)  Except as provided by Subsection (b) of this
 3-8     section, this Act takes effect January 1, 2000, and applies only to
 3-9     the imposition of ad valorem taxes for a tax year beginning on or
3-10     after that date and the rendition of property for ad valorem tax
3-11     purposes on or after that date.
3-12           (b)  Sections 1 and 2 of this Act take effect only if the
3-13     constitutional amendment proposed by the 76th Legislature, Regular
3-14     Session, 1999, to authorize tax incentives to encourage the
3-15     voluntary rendition of commercial tangible personal property for
3-16     taxation is approved by the voters.  If that amendment is not
3-17     approved by the voters, Sections 1 and 2 of this Act have no
3-18     effect.
3-19           SECTION 7.  The importance of this legislation and the
3-20     crowded condition of the calendars in both houses create an
3-21     emergency and an imperative public necessity that the
3-22     constitutional rule requiring bills to be read on three several
3-23     days in each house be suspended, and this rule is hereby suspended.