By:  Carona                                           S.J.R. No. 21
                               SENATE JOINT RESOLUTION
 1-1     proposing a constitutional amendment relating to the exemption from
 1-2     ad valorem taxation of certain leased motor vehicles not held
 1-3     primarily for the production of income.
 1-4           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subsections (d) and (e), Section 1, Article VIII,
 1-6     Texas Constitution, are amended to read as follows:
 1-7           (d)  The Legislature by general law shall exempt from ad
 1-8     valorem taxation household goods not held or used for the
 1-9     production of income and personal effects not held or used for the
1-10     production of income.  The Legislature by general law may exempt
1-11     from ad valorem taxation:
1-12                 (1)  all or part of the personal property homestead of
1-13     a family or single adult, "personal property homestead" meaning
1-14     that personal property exempt by law from forced sale for debt;
1-15     [and]
1-16                 (2)  subject to Subsections (e) and (g) of this
1-17     section, all other tangible personal property, except structures
1-18     which are personal property and are used or occupied as residential
1-19     dwellings and except property held or used for the production of
1-20     income; and
1-21                 (3)  subject to Subsection (e) of this section, a
1-22     leased motor vehicle that is not held primarily for the production
1-23     of income by the lessee and that otherwise qualifies under general
1-24     law for exemption.
 2-1           (e)  The governing body of a political subdivision[, other
 2-2     than a county education district,] may provide for the taxation of
 2-3     all property exempt under a law adopted under Subdivision (2) or
 2-4     (3) of Subsection (d) of this section and not exempt from ad
 2-5     valorem taxation by any other law.  The Legislature by general law
 2-6     may provide limitations to the application of this subsection to
 2-7     the taxation of vehicles exempted under the authority of
 2-8     Subdivision (3) of Subsection (d) of this section.  [In the manner
 2-9     provided by law, the voters of a county education district at an
2-10     election held for that purpose may provide for the taxation of all
2-11     property exempt under a law adopted under Subdivision (2) of
2-12     Subsection (d) of this section and not exempt from ad valorem
2-13     taxation by any other law.]
2-14           SECTION 2.  This proposed constitutional amendment shall be
2-15     submitted to the voters at an election to be held November 2, 1999.
2-16     The ballot shall be printed to permit voting for or against the
2-17     proposition:  "The constitutional amendment to authorize the
2-18     legislature to exempt from ad valorem taxation leased motor
2-19     vehicles not held by the lessee primarily to produce income."