78S40813 DAK-D

By:  Davis of Dallas                                              H.B. No. 53 



A BILL TO BE ENTITLED

AN ACT

relating to taxes.                                                            
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  (a)  Notwithstanding any other law, the amount of 
an exemption, refund, or credit in the following provisions of the 
Tax Code that a taxpayer may claim is reduced by 50 percent:
		(1)  Subchapter B, Chapter 11;                                                
		(2)  Subchapter C, Chapter 11;                                                
		(3)  Subchapter H, Chapter 151, except that the amount 
of an exemption in the following provisions is not reduced:
			(A)  Section 151.313;                                                        
			(B)  Section 151.314;                                                        
			(C)  Section 151.3141; and                                                   
			(D)  Section 151.315;                                                        
		(4)  Section 151.429;                                                         
		(5)  Section 151.4291;                                                        
		(6)  Section 151.431;                                                         
		(7)  Subchapter B, Chapter 171;                                               
		(8)  Subchapter J, Chapter 171;                                               
		(9)  Subchapter L, Chapter 171;                                               
		(10)  Subchapter M, Chapter 171;                                              
		(11)  Subchapter N, Chapter 171;                                              
		(12)  Subchapter O, Chapter 171;                                              
		(13)  Subchapter P, Chapter 171;                                              
		(14)  Subchapter Q, Chapter 171;                                              
		(15)  Subchapter R, Chapter 171;                                              
		(16)  Subchapter S, Chapter 171;                                              
		(17)  Subchapter T, Chapter 171;                                              
		(18)  Subchapter U, Chapter 171, as added by Chapter 
209, Acts of the 78th Legislature, Regular Session, 2003; and
		(19)  Subchapter U, Chapter 171, as added by Chapter 
1274, Acts of the 78th Legislature, Regular Session, 2003.
	(b)  The reduction of a tax exemption in Chapter 11, Tax 
Code, by Subsection (a) of this section is not effective if the 
constitution of this state directly provides the exemption.  If the 
constitution of this state authorizes but does not directly provide 
the exemption, the reduction of the exemption by this Act is 
effective.
	SECTION 2.  (a)  This Act takes effect July 1, 2004, if it 
receives a vote of two-thirds of all the members elected to each 
house, as provided by Section 39, Article III, Texas Constitution.  
If this Act does not receive the vote necessary for effect on that 
date, this Act takes effect October 1, 2004.
	(b)  The change in law made by this Act to Chapter 171, Tax 
Code, applies only to a report originally due on or after the 
effective date of this Act.
	(c)  This Act does not affect taxes imposed before the 
effective date of this Act, and the law in effect before the 
effective date of this Act is continued in effect for purposes of 
the liability for and collection of those taxes.