78R5927 JD-D


By:  Chisum, Swinford, Farabee, Ellis, Flores, et al.             H.B. No. 40 

Substitute the following for H.B. No. 40:                                     

By:  Hegar                                                    C.S.H.B. No. 40 



A BILL TO BE ENTITLED

AN ACT

relating to the exemption of certain travel trailers from ad 
valorem taxation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 11.14(a), Tax Code, is amended to read as 
follows:       
	(a)  A [Except as otherwise provided by this subsection, a] 
person is entitled to an exemption from taxation of all tangible 
personal property, other than manufactured homes, that the person 
owns and that is not held or used for production of income.  [This 
subsection does not exempt from taxation a travel trailer, as 
defined by Section 11.142, that a person owns.]
	SECTION 2.  Section 11.142, Tax Code, is repealed.                             
	SECTION 3.  This Act takes effect January 1, 2004, and 
applies only to taxes imposed for a tax year beginning on or after 
that date, but only if the constitutional amendment proposed by the 
78th Legislature, Regular Session, 2003, authorizing the 
legislature to exempt from ad valorem taxation certain travel 
trailers not held or used for the production of income is approved 
by the voters.  If that amendment is not approved by the voters, 
this Act has no effect.