SRC-EPT, TBR, JEC S.J.R. 6 77(R)BILL ANALYSIS Senate Research CenterS.J.R. 6 By: Duncan Finance 6/14/2001 Enrolled DIGEST AND PURPOSE Texas law does not provide an ad valorem taxation exemption to certain tangible personal property held temporarily for commercial purposes. S.J.R. 6 proposes a constitutional amendment that exempts certain personal property from ad valorem taxation. 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 Article VIII, Texas Constitution, by adding Section 1-n, as follows: (a) Authorizes the legislature by general law, to exempt from ad valorem taxation goods, wares, merchandise, other tangible persona property, and ores, other than oil, natural gas, and other petroleum products, to promote economic development in this state if: (1) the property is acquired in or imported into this state to be forwarded to another location in this state or outside this state, whether the intention to forward the property to another location in this state or outside this state is formed or the destination to which the property is forwarded is specified when the property is acquired in or imported into this state; (2) the property is detained at a location in this state that is not owned or under the control of the property owner for certain purposes by the person who acquired or imported the property; and (3) the property is transported to another location in this state or outside of this state not later than 270 days after the date the person acquired the property in or imported the property into this state. (b) Sets forth certain guidelines related to property for the purposes of this section. (c) Authorizes a property owner who is eligible to receive the exemption authorized by Section 1-j of this article to apply for the exemption authorized by the legislature under this section in the manner provided by general law, subject to the provisions of Subsectoin (d) of this section. Prohibits a property owner who receives the exemption authorized by the legislature under this section from receiving the exemption authorized by Section 1-j of this article for the same property. (d) Authorizes the governing body of a political subdivision that imposes ad valorem taxes to provide for the taxation of property exempt under a law adopted under Subsection (a) of this section and not exempt from ad valorem taxation by any other law. Authorizes the governing body of the political subdivision, before acting to tax the exempt property, to conduct a public hearing at which members of the public are permitted to speak for or against the taxation of the property. (e) Provides that the effective date of this section is January 1, 2002. Provides that the expiration date of this subsection is January 1, 2003. SECTION 2. Requires this proposed constitutional amendment to be submitted to the voters at an election to be held November 6, 2001. Requires the ballot to be printed to permit voting for or against the proposition: "The constitutional amendment to promote equal tax treatment for products produced, acquired, and distributed in the State of Texas by authorizing the legislature to exempt from ad valorem taxation tangible personal property held at certain locations only temporarily for assembling, manufacturing, processing, or other commercial purposes."