77R9610 SMH-F                           
         By Lewis of Orange                                    H.B. No. 1100
         Substitute the following for H.B. No. 1100:
         By Davis of Dallas                                C.S.H.B. No. 1100
                                A BILL TO BE ENTITLED
 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.