SRC-JEC S.B. 1574 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1574
By: Gallegos
Intergovernmental Relations
3/20/2001
As Filed


DIGEST AND PURPOSE 

Current statutes place an ad valorem tax on coffee stored in Texas.  As
proposed, S.B. 1574 exempts green coffee and raw cocoa held in Harris
County from ad valorem taxes in order to qualify Harris County as an
exchange port for coffee on the New York Board of Trade.   

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 11B, Tax Code, by adding Section 11.33, as
follows: 

Sec. 11.33.  RAW COCOA AND GREEN COFFEE HELD IN HARRIS COUNTY.  (a)
Entitles a person to an exemption from taxation of raw cocoa and green
coffee that the person holds in Harris County. 

(b)  Provides that an exemption granted under this section, once allowed,
need not be claimed in subsequent years, and the exemption applies to all
raw cocoa and green coffee the person holds until the cocoa's or the
coffee's qualification for the exemption changes.  Authorizes the chief
appraiser, however, to require a person who holds raw cocoa or green coffee
for which an exemption in a prior year has been granted to file a new
application to confirm the cocoa's or the coffee's current qualification
for the exemption by delivering a written notice that a new application is
required, accompanied by an appropriate application form, to the person. 

SECTION 2.   Effective date:  January 1, 2002.
Makes application of this Act contingent on the approval of the voters of
the proposed constitutional amendment allowing the legislature to exempt
from ad valorem taxation raw cocoa and green coffee that is held in Harris
County.