1-1     By:  Cain                                             S.B. No. 1462
 1-2           (In the Senate - Filed March 12, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on Finance; April 23, 1999,
 1-4     reported favorably by the following vote:  Yeas 7, Nays 0;
 1-5     April 23, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the ad valorem taxation of tangible personal property
 1-9     held or used for the production of income.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
1-12     adding Section 11.147 to read as follows:
1-13           Sec. 11.147.  INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY
1-14     RENDERED FOR TAXATION.  A person is entitled to an exemption from
1-15     taxation by each taxing unit of $10,000 of the total appraised
1-16     value of all the tangible personal property the person owns:
1-17                 (1)  that is held or used for the production of income;
1-18                 (2)  that is taxable by the taxing unit; and
1-19                 (3)  with respect to which the person timely delivers a
1-20     rendition statement or property report as required by Chapter 22.
1-21           SECTION 2.  Subsection (a), Section 11.43, Tax Code, is
1-22     amended to read as follows:
1-23           (a)  To receive an exemption, a person claiming the
1-24     exemption, other than an exemption authorized by Section 11.11,
1-25     11.12, 11.14, 11.145, 11.146, 11.147, 11.15, 11.16, 11.161, or
1-26     11.25 [of this code], must apply for the exemption.  To apply for
1-27     an exemption, a person must file an exemption application form with
1-28     the chief appraiser for each appraisal district in which the
1-29     property subject to the claimed exemption has situs.
1-30           SECTION 3.  Subchapter B, Chapter 22, Tax Code, is amended by
1-31     adding Section 22.231 to read as follows:
1-32           Sec. 22.231.  REQUIREMENT TO DELIVER RENDITION STATEMENT OR
1-33     PROPERTY REPORT; INJUNCTION.  (a)  A requirement under this chapter
1-34     to deliver a rendition statement or property report to a chief
1-35     appraiser is mandatory.
1-36           (b)  If a person required by this chapter to deliver a
1-37     rendition statement or property report to the chief appraiser fails
1-38     to deliver the statement or report in the time required by this
1-39     chapter, the chief appraiser may bring suit for an injunction
1-40     requiring the person to deliver the statement or report.
1-41           SECTION 4.  Section 41.43, Tax Code, is amended by amending
1-42     Subsection (a) and adding Subsection (d) to read as follows:
1-43           (a)  Except as provided by Subsection (d), in [In] a protest
1-44     authorized by Section 41.41(a)(1) [41.41(1)] or (2), the appraisal
1-45     district has the burden of establishing the value of the property
1-46     by a preponderance of the evidence presented at the hearing.  If
1-47     the appraisal district fails to meet that standard, the protest
1-48     shall be determined in favor of the property owner.
1-49           (d)  If the property owner failed to timely deliver a
1-50     rendition statement or property report for the property that is the
1-51     subject of the protest as required by Chapter 22:
1-52                 (1)  the property owner has the burden of establishing
1-53     the value of the property by a preponderance of the evidence
1-54     presented at the hearing; and
1-55                 (2)  if the  property owner fails to meet the standard
1-56     provided by Subdivision (1), the protest shall be determined in
1-57     favor of the appraisal district.
1-58           SECTION 5.  Section 42.29, Tax Code, is amended by adding
1-59     Subsection (c) to read as follows:
1-60           (c)  Notwithstanding Subsection (a), a property owner may not
1-61     be awarded attorney's fees if the property owner failed to timely
1-62     deliver a rendition statement or property report as required by
1-63     Chapter 22.
1-64           SECTION 6.  (a)  Except as provided by Subsection (b) of this
 2-1     section, this Act takes effect January 1, 2000, and applies only to
 2-2     the imposition of ad valorem taxes for a tax year beginning on or
 2-3     after that date and the rendition of property for ad valorem tax
 2-4     purposes on or after that date.
 2-5           (b)  Sections 1 and 2 of this Act take effect only if the
 2-6     constitutional amendment proposed by the 76th Legislature, Regular
 2-7     Session, 1999, to authorize tax incentives to encourage the
 2-8     voluntary rendition of commercial tangible personal property for
 2-9     taxation is approved by the voters.  If that amendment is not
2-10     approved by the voters, Sections 1 and 2 of this Act have no
2-11     effect.
2-12           SECTION 7.  The importance of this legislation and the
2-13     crowded condition of the calendars in both houses create an
2-14     emergency and an imperative public necessity that the
2-15     constitutional rule requiring bills to be read on three several
2-16     days in each house be suspended, and this rule is hereby suspended.
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