1-1 By: Duncan, Zaffirini, Fraser S.J.R. No. 6 1-2 (In the Senate - Filed December 15, 2000; January 11, 2001, 1-3 read first time and referred to Committee on Finance; 1-4 April 24, 2001, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 12, Nays 0; April 24, 2001, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.J.R. No. 6 By: Duncan 1-8 SENATE JOINT RESOLUTION 1-9 proposing a constitutional amendment to exempt from ad valorem 1-10 taxation tangible personal property held at certain locations only 1-11 temporarily for assembling, manufacturing, processing, or other 1-12 commercial purposes. 1-13 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-14 SECTION 1. Article VIII, Texas Constitution, is amended by 1-15 adding Section 1-n to read as follows: 1-16 Sec. 1-n. (a) To promote economic development in this 1-17 state, goods, wares, merchandise, other tangible personal property, 1-18 and ores, other than oil, natural gas, and other petroleum 1-19 products, are exempt from ad valorem taxation if: 1-20 (1) the property is acquired in or imported into this 1-21 state to be forwarded to another location in this state or outside 1-22 this state, whether or not the intention to forward the property to 1-23 another location in this state or outside this state is formed or 1-24 the destination to which the property is forwarded is specified 1-25 when the property is acquired in or imported into this state; 1-26 (2) the property is detained at a location in this 1-27 state that is not owned or under the control of the property owner 1-28 for assembling, storing, manufacturing, processing, or fabricating 1-29 purposes by the person who acquired or imported the property; and 1-30 (3) the property is transported to another location in 1-31 this state or outside this state not later than 270 days after the 1-32 date the person acquired the property in or imported the property 1-33 into this state. 1-34 (b) For purposes of this section: 1-35 (1) tangible personal property includes aircraft and 1-36 aircraft parts; 1-37 (2) property imported into this state includes 1-38 property brought into this state; 1-39 (3) property forwarded to another location in this 1-40 state or outside this state includes property transported to 1-41 another location in this state or outside this state or to be 1-42 affixed to an aircraft to be transported to another location in 1-43 this state or outside this state; and 1-44 (4) property detained at a location in this state for 1-45 assembling, storing, manufacturing, processing, or fabricating 1-46 purposes includes property, aircraft, or aircraft parts brought 1-47 into this state or acquired in this state and used by the person 1-48 who acquired the property, aircraft, or aircraft parts in this 1-49 state or who brought the property, aircraft, or aircraft parts into 1-50 this state for the purpose of repair or maintenance of aircraft 1-51 operated by a certificated air carrier. 1-52 (c) A property owner who is eligible to receive the 1-53 exemption authorized by Section 1-j of this article may apply for 1-54 the exemption authorized by this section in the manner provided by 1-55 general law. A property owner who receives the exemption 1-56 authorized by this section is not entitled to receive the exemption 1-57 authorized by Section 1-j of this article for the same property. 1-58 (d) The governing body of a political subdivision that 1-59 imposes ad valorem taxes may provide for the taxation of property 1-60 exempt under Subsection (a) of this section and not exempt from ad 1-61 valorem taxation by any other law. Before acting to tax the exempt 1-62 property, the governing body of the political subdivision must 1-63 conduct a public hearing at which members of the public are 1-64 permitted to speak for or against the taxation of the property. 2-1 (e) This section takes effect January 1, 2002. This 2-2 subsection expires January 1, 2003. 2-3 SECTION 2. This proposed constitutional amendment shall be 2-4 submitted to the voters at an election to be held November 6, 2001. 2-5 The ballot shall be printed to permit voting for or against the 2-6 proposition: "The constitutional amendment to promote equal tax 2-7 treatment for products produced, acquired, and distributed in the 2-8 State of Texas by providing for the exemption from ad valorem 2-9 taxation of tangible personal property held at certain locations 2-10 only temporarily for assembling, manufacturing, processing, or 2-11 other commercial purposes." 2-12 * * * * *