1-1     By:  Carona                                           S.J.R. No. 21
 1-2           (In the Senate - Filed February 4, 1999; February 10, 1999,
 1-3     read first time and referred to Committee on Finance;
 1-4     March 22, 1999, reported favorably by the following vote:  Yeas 10,
 1-5     Nays 0; March 22, 1999, sent to printer.)
 1-6                           SENATE JOINT RESOLUTION
 1-7     proposing a constitutional amendment relating to the exemption from
 1-8     ad valorem taxation of certain leased motor vehicles not held
 1-9     primarily for the production of income.
1-10           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subsections (d) and (e), Section 1, Article VIII,
1-12     Texas Constitution, are amended to read as follows:
1-13           (d)  The Legislature by general law shall exempt from ad
1-14     valorem taxation household goods not held or used for the
1-15     production of income and personal effects not held or used for the
1-16     production of income.  The Legislature by general law may exempt
1-17     from ad valorem taxation:
1-18                 (1)  all or part of the personal property homestead of
1-19     a family or single adult, "personal property homestead" meaning
1-20     that personal property exempt by law from forced sale for debt;
1-21     [and]
1-22                 (2)  subject to Subsections (e) and (g) of this
1-23     section, all other tangible personal property, except structures
1-24     which are personal property and are used or occupied as residential
1-25     dwellings and except property held or used for the production of
1-26     income; and
1-27                 (3)  subject to Subsection (e) of this section, a
1-28     leased motor vehicle that is not held primarily for the production
1-29     of income by the lessee and that otherwise qualifies under general
1-30     law for exemption.
1-31           (e)  The governing body of a political subdivision[, other
1-32     than a county education district,] may provide for the taxation of
1-33     all property exempt under a law adopted under Subdivision (2) or
1-34     (3) of Subsection (d) of this section and not exempt from ad
1-35     valorem taxation by any other law.  The Legislature by general law
1-36     may provide limitations to the application of this subsection to
1-37     the taxation of vehicles exempted under the authority of
1-38     Subdivision (3) of Subsection (d) of this section.  [In the manner
1-39     provided by law, the voters of a county education district at an
1-40     election held for that purpose may provide for the taxation of all
1-41     property exempt under a law adopted under Subdivision (2) of
1-42     Subsection (d) of this section and not exempt from ad valorem
1-43     taxation by any other law.]
1-44           SECTION 2.  This proposed constitutional amendment shall be
1-45     submitted to the voters at an election to be held November 2, 1999.
1-46     The ballot shall be printed to permit voting for or against the
1-47     proposition:  "The constitutional amendment to authorize the
1-48     legislature to exempt from ad valorem taxation leased motor
1-49     vehicles not held by the lessee primarily to produce income."
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