By Duncan                                             S.J.R. No. 39
         76R8906 JD-D                           
                                 A JOINT RESOLUTION
 1-1     proposing a constitutional amendment to exempt from ad valorem
 1-2     taxation certain tangible personal property held temporarily for
 1-3     assembling, manufacturing, processing, or other commercial
 1-4     purposes.
 1-5           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Article VIII, Texas Constitution, is amended by
 1-7     adding Section 1-n to read as follows:
 1-8           Sec. 1-n.   (a)  To promote economic development in this
 1-9     state, goods, wares, merchandise, other tangible personal property,
1-10     and ores, other than oil, natural gas, and other petroleum
1-11     products, are exempt from ad valorem taxation if:
1-12                 (1)  the property is acquired in or imported into this
1-13     state to be forwarded to another location in this state or outside
1-14     this state, whether the intention to forward the property to
1-15     another location in this state or outside this state is formed or
1-16     the destination to which the property is forwarded is specified
1-17     when the property is acquired in or imported into this state;
1-18                 (2)  the property is detained at a location in this
1-19     state for assembling, storing, manufacturing, processing, or
1-20     fabricating purposes by the person who acquired or imported the
1-21     property; and
1-22                 (3)  the property is transported to another location in
1-23     this state or outside of this state not later than 270 days after
1-24     the date the person acquired or imported the property in this
 2-1     state.
 2-2           (b)  For purposes of this section:
 2-3                 (1)  tangible personal property includes aircraft and
 2-4     aircraft parts;
 2-5                 (2)  property imported into this state includes
 2-6     property brought into this state;
 2-7                 (3)  property forwarded to another location in this
 2-8     state or outside this state includes property transported to
 2-9     another location in this state or outside this state or to be
2-10     affixed to an aircraft to be transported to another location in
2-11     this state or outside this state; and
2-12                 (4)  property detained at a location in this state for
2-13     assembling, storing, manufacturing, processing, or fabricating
2-14     purposes includes property, aircraft, or aircraft parts brought
2-15     into this state or acquired in this state and used by the person
2-16     who acquired the property, aircraft, or aircraft parts in this
2-17     state or who brought the property, aircraft, or aircraft parts into
2-18     this state for the purpose of repair or maintenance of aircraft
2-19     operated by a certificated air carrier.
2-20           (c)  A property owner who is eligible to receive the
2-21     exemption authorized by Section 1-j of this article may apply for
2-22     the exemption authorized by this section in the manner provided by
2-23     general law.  A property owner who receives the exemption
2-24     authorized by this section is not entitled to receive the exemption
2-25     authorized by Section 1-j of this article for the same property.
2-26           (d)  This section takes effect January 1, 2000.  This
2-27     subsection expires January 1, 2001.
 3-1           SECTION 2.  This proposed constitutional amendment shall be
 3-2     submitted to the voters at an election to be held November 2, 1999.
 3-3     The ballot shall be printed to permit voting for or against the
 3-4     proposition:  "The constitutional amendment to promote equal tax
 3-5     treatment for products produced, acquired, and distributed in the
 3-6     State of Texas by providing for the exemption from ad valorem
 3-7     taxation of tangible personal property held only temporarily for
 3-8     assembling, manufacturing, processing, or other commercial
 3-9     purposes."