By Gallego H.J.R. No. 25
77R1135 GJH-D
A JOINT RESOLUTION
1-1 proposing a constitutional amendment to exempt from ad valorem
1-2 taxation certain tangible personal property held at certain
1-3 locations only temporarily for assembling, manufacturing,
1-4 processing, or other commercial purposes.
1-5 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Article VIII, Texas Constitution, is amended by
1-7 adding Section 1-n to read as follows:
1-8 Sec. 1-n. (a) To promote economic development in this
1-9 state, goods, wares, merchandise, other tangible personal property,
1-10 and ores, other than oil, natural gas, and other petroleum
1-11 products, are exempt from ad valorem taxation if:
1-12 (1) the property is acquired in or imported into this
1-13 state to be forwarded to another location in this state or outside
1-14 this state, whether the intention to forward the property to
1-15 another location in this state or outside this state is formed or
1-16 the destination to which the property is forwarded is specified
1-17 when the property is acquired in or imported into this state;
1-18 (2) the property is detained at a location in this
1-19 state that is not owned or under the control of the property owner
1-20 for assembling, storing, manufacturing, processing, or fabricating
1-21 purposes by the person who acquired or imported the property; and
1-22 (3) the property is transported to another location in
1-23 this state or outside this state not later than 270 days after the
1-24 date the person acquired or imported the property in this state.
2-1 (b) For purposes of this section:
2-2 (1) tangible personal property includes aircraft and
2-3 aircraft parts;
2-4 (2) property imported into this state includes
2-5 property brought into this state;
2-6 (3) property forwarded to another location in this
2-7 state or outside this state includes property transported to
2-8 another location in this state or outside this state or to be
2-9 affixed to an aircraft to be transported to another location in
2-10 this state or outside this state; and
2-11 (4) property detained at a location in this state for
2-12 assembling, storing, manufacturing, processing, or fabricating
2-13 purposes includes property, aircraft, or aircraft parts brought
2-14 into this state or acquired in this state and used by the person
2-15 who acquired the property, aircraft, or aircraft parts in this
2-16 state or who brought the property, aircraft, or aircraft parts into
2-17 this state for the purpose of repair or maintenance of aircraft
2-18 operated by a certificated air carrier.
2-19 (c) A county, common or independent school district, junior
2-20 college district, or municipality, including a home-rule
2-21 municipality, may tax property otherwise exempt from taxation under
2-22 Subsection (a) of this section if:
2-23 (1) before April 1, 2002, the governing body of the
2-24 county, school district, junior college district, or municipality
2-25 by official action proposes to provide for the taxation of the
2-26 property; and
2-27 (2) the voters of the county, school district, junior
3-1 college district, or municipality at an election held for that
3-2 purpose on November 5, 2002, approve the taxation of the property.
3-3 (d) If a county, school district, junior college district,
3-4 or municipality takes action under Subsection (c) of this section
3-5 to tax property otherwise exempt from taxation under Subsection (a)
3-6 of this section, the action takes effect January 1, 2003. A
3-7 county, school district, junior college district, or municipality
3-8 that takes action under Subsection (c) of this section to tax the
3-9 property may subsequently exempt the property from taxation if:
3-10 (1) the governing body of the county, school district,
3-11 junior college district, or municipality by official action
3-12 proposes to rescind the previous action to tax the property; and
3-13 (2) the voters of the county, school district, junior
3-14 college district, or municipality, at an election held for that
3-15 purpose, approve the rescission of the action to tax the property.
3-16 (e) A rescission under Subsection (d) of this section
3-17 applies to each tax year that begins after the date of the election
3-18 held under Subsection (d). A county, school district, junior
3-19 college district, or municipality that rescinds its previous action
3-20 to tax the property otherwise exempt from taxation under Subsection
3-21 (a) of this section may not subsequently take action to tax the
3-22 property.
3-23 (f) A property owner who is eligible to receive the
3-24 exemption authorized by Section 1-j of this article may apply for
3-25 the exemption authorized by this section in the manner provided by
3-26 general law. A property owner who receives the exemption
3-27 authorized by this section is not entitled to receive the exemption
4-1 authorized by Section 1-j of this article for the same property.
4-2 (g) This section takes effect January 1, 2002. The
4-3 exemption of property provided by Subsection (a) of this section
4-4 applies beginning with taxes imposed in 2003. This subsection
4-5 expires January 1, 2004.
4-6 SECTION 2. This proposed constitutional amendment shall be
4-7 submitted to the voters at an election to be held November 6, 2001.
4-8 The ballot shall be printed to permit voting for or against the
4-9 proposition: "The constitutional amendment to promote equal tax
4-10 treatment for products produced, acquired, and distributed in the
4-11 State of Texas by providing for the exemption from ad valorem
4-12 taxation of tangible personal property held at certain locations
4-13 only temporarily for assembling, manufacturing, processing, or
4-14 other commercial purposes."