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."