By Bernsen                                             S.B. No. 530
         77R4923 SMH-D                           
                                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 that the owner
 2-1     intends to incorporate in and that is suitable for incorporation in
 2-2     an identified vessel or other watercraft described by Subsection
 2-3     (c) or (g) is presumed to be in interstate, international, or
 2-4     foreign commerce and not located in this state for longer than a
 2-5     temporary period for purposes of Sections 11.01 and 21.02.
 2-6           SECTION 2. This Act takes effect January 1, 2002.