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."
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