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