By Uher                                               H.B. No. 2551
         77R6778 GJH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to an exemption from ad valorem taxation of boats and
 1-3     other equipment used primarily in the commercial taking or
 1-4     production of fish, shrimp, shellfish, and other marine life as
 1-5     food for human consumption.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
 1-8     adding Section 11.162 to read as follows:
 1-9           Sec. 11.162.  COMMERCIAL FISHING EQUIPMENT. (a)  A person is
1-10     entitled to an exemption from taxation of each boat the person owns
1-11     and uses primarily in the taking or production of fish, shrimp,
1-12     shellfish, or other marine life to sell as food for human
1-13     consumption.
1-14           (b)  The exemption provided by this section also applies to
1-15     the nets and other equipment primarily used in connection with the
1-16     use of the boat for the exempt purposes provided by Subsection (a).
1-17           (c)  In this section, "boat" means a vessel that does not
1-18     exceed 100 feet in length.
1-19           SECTION 2.  Section 11.43(c), Tax Code, is amended to read as
1-20     follows:
1-21           (c)  An exemption provided by Section 11.13, 11.162, 11.17,
1-22     11.18, 11.183, 11.19, 11.20, 11.21, 11.22, 11.23(j), 11.29, 11.30,
1-23     or 11.31 [of this code], once allowed, need not be claimed in
1-24     subsequent years, and except as otherwise provided by Subsection
 2-1     (e) [of this section], the exemption applies to the property until
 2-2     it changes ownership or the person's qualification for the
 2-3     exemption changes.  However, the chief appraiser may require a
 2-4     person allowed one of the exemptions in a prior year to file a new
 2-5     application to confirm the person's current qualification for the
 2-6     exemption by delivering a written notice that a new application is
 2-7     required, accompanied by an appropriate application form, to the
 2-8     person previously allowed the exemption.
 2-9           SECTION 3.  This Act takes effect January 1, 2002, but only
2-10     if the constitutional amendment proposed by the 77th Legislature,
2-11     Regular Session, 2001, to exempt from ad valorem taxation boats and
2-12     other equipment used primarily in the commercial taking or
2-13     production of fish, shrimp, shellfish, and other marine life as
2-14     food for human consumption is approved by the voters.  If that
2-15     proposed constitutional amendment is not approved by the voters,
2-16     this Act has no effect.