SRC-TBR, JEC C.S.S.J.R. 6 77(R)BILL ANALYSIS


Senate Research CenterC.S.S.J.R. 6
77R12949 JD-DBy: Duncan
Finance
4/22/2001
Committee Report (Substituted)


DIGEST AND PURPOSE 

Currently, Texas law does not provide an ad valorem taxation exemption to
certain tangible personal property held temporarily for commercial
purposes.  C.S.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, to add Section 1-n, as
follows: 

(a) Exempts goods, wares, merchandise, other tangible personal property,
and ores, other than oil, natural gas, and other petroleum products, from
ad valorem taxation 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 or imported the property in 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 this section in the manner provided by general law.
Prohibits a property owner who receives the exemption authorized by 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
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 providing for
the exemption from ad valorem taxation of tangible personal property held
at certain locations only temporarily for assembling, manufacturing,
processing, or other commercial purposes." 

SUMMARY OF COMMITTEE CHANGES

Amends As Filed S.J.R. 6 by adding Subsection (d) and redesignating
proposed Subsection (d) as Subsection (e).