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