1-1 SENATE JOINT RESOLUTION
1-2 proposing a constitutional amendment authorizing the legislature to
1-3 exempt from ad valorem taxation tangible personal property held at
1-4 certain locations only temporarily for assembling, manufacturing,
1-5 processing, or other commercial purposes.
1-6 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Article VIII, Texas Constitution, is amended by
1-8 adding Section 1-n to read as follows:
1-9 Sec. 1-n. (a) To promote economic development in this
1-10 state, the legislature by general law may exempt from ad valorem
1-11 taxation goods, wares, merchandise, other tangible personal
1-12 property, and ores, other than oil, natural gas, and other
1-13 petroleum products, if:
1-14 (1) the property is acquired in or imported into this
1-15 state to be forwarded to another location in this state or outside
1-16 this state, whether or not the intention to forward the property to
1-17 another location in this state or outside this state is formed or
1-18 the destination to which the property is forwarded is specified
1-19 when the property is acquired in or imported into this state;
1-20 (2) the property is detained at a location in this
1-21 state that is not owned or under the control of the property owner
1-22 for assembling, storing, manufacturing, processing, or fabricating
1-23 purposes by the person who acquired or imported the property; and
1-24 (3) the property is transported to another location in
1-25 this state or outside this state not later than 270 days after the
2-1 date the person acquired the property in or imported the property
2-2 into this state.
2-3 (b) For purposes of this section:
2-4 (1) tangible personal property includes aircraft and
2-5 aircraft parts;
2-6 (2) property imported into this state includes
2-7 property brought into this state;
2-8 (3) property forwarded to another location in this
2-9 state or outside this state includes property transported to
2-10 another location in this state or outside this state or to be
2-11 affixed to an aircraft to be transported to another location in
2-12 this state or outside this state; and
2-13 (4) property detained at a location in this state for
2-14 assembling, storing, manufacturing, processing, or fabricating
2-15 purposes includes property, aircraft, or aircraft parts brought
2-16 into this state or acquired in this state and used by the person
2-17 who acquired the property, aircraft, or aircraft parts in this
2-18 state or who brought the property, aircraft, or aircraft parts into
2-19 this state for the purpose of repair or maintenance of aircraft
2-20 operated by a certificated air carrier.
2-21 (c) A property owner who is eligible to receive the
2-22 exemption authorized by Section 1-j of this article may apply for
2-23 the exemption authorized by the legislature under this section in
2-24 the manner provided by general law, subject to the provisions of
2-25 Subsection (d) of this section. A property owner who receives the
2-26 exemption authorized by the legislature under this section is not
3-1 entitled to receive the exemption authorized by Section 1-j of this
3-2 article for the same property.
3-3 (d) The governing body of a political subdivision that
3-4 imposes ad valorem taxes may provide for the taxation of property
3-5 exempt under a law adopted under Subsection (a) of this section
3-6 and not exempt from ad valorem taxation by any other law. Before
3-7 acting to tax the exempt property, the governing body of the
3-8 political subdivision must conduct a public hearing at which
3-9 members of the public are permitted to speak for or against the
3-10 taxation of the property.
3-11 (e) This section takes effect January 1, 2002. This
3-12 subsection expires January 1, 2003.
3-13 SECTION 2. This proposed constitutional amendment shall be
3-14 submitted to the voters at an election to be held November 6, 2001.
3-15 The ballot shall be printed to permit voting for or against the
3-16 proposition: "The constitutional amendment to promote equal tax
3-17 treatment for products produced, acquired, and distributed in the
3-18 State of Texas by authorizing the legislature to exempt from ad
3-19 valorem taxation tangible personal property held at certain
3-20 locations only temporarily for assembling, manufacturing,
3-21 processing, or other commercial purposes."
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.J.R. No. 6 was adopted by the Senate
on May 8, 2001, by the following vote: Yeas 26, Nays 2, one
present not voting; and that the Senate concurred in House
amendment on May 25, 2001, by the following vote: Yeas 30, Nays 0,
one present not voting.
_______________________________
Secretary of the Senate
I hereby certify that S.J.R. No. 6 was adopted by the House,
with amendment, on May 22, 2001, by the following vote: Yeas 129,
Nays 12, one present not voting.
_______________________________
Chief Clerk of the House