1-1                                   AN ACT
 1-2     relating to the presumption that certain vessels and other
 1-3     watercraft are located in this state only temporarily for ad
 1-4     valorem tax purposes.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 21.031, Tax Code, is amended by amending
 1-7     Subsection (c) and adding Subsections (g) and (h) to read as
 1-8     follows:
 1-9           (c)  A vessel or other watercraft used as an instrumentality
1-10     of commerce or a special-purpose vessel or other watercraft not
1-11     used as an instrumentality of commerce that is used outside this
1-12     state and is in this state solely to be converted, repaired,
1-13     stored, or inspected is presumed to be in interstate,
1-14     international, or foreign commerce and not located in this state
1-15     for longer than a temporary period for purposes of Sections 11.01
1-16     and 21.02 [of this code].
1-17           (g)  A vessel or other watercraft to be used as an
1-18     instrumentality of commerce or a special-purpose vessel or other
1-19     watercraft not to be used as an instrumentality of commerce that is
1-20     under construction in this state is presumed to be in interstate,
1-21     international, or foreign commerce and not located in this state
1-22     for longer than a temporary period for purposes of Sections 11.01
1-23     and 21.02.
1-24           (h)  Tangible personal property in this state  is presumed to
 2-1     be in interstate, international, or foreign commerce and not
 2-2     located in this state for longer than a temporary period for
 2-3     purposes of Sections 11.01 and 21.02 if the owner demonstrates to
 2-4     the chief appraiser that the owner intends to incorporate the
 2-5     property in or attach the property to an identified vessel or other
 2-6     watercraft described by Subsection (c) or (g).
 2-7           SECTION 2. This Act takes effect January 1, 2002.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1100 was passed by the House on April
         5, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1100 was passed by the Senate on May
         3, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor