78R4986 RCJ-D

By:  Armbrister                                                   S.B. No. 456



A BILL TO BE ENTITLED

AN ACT

relating to an exemption from ad valorem taxation of certain 
commercial boats and equipment used for taking or producing fish, 
shrimp, shellfish, or other marine life.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.   Subchapter B, Chapter 11, Tax Code, is amended 
by adding Section 11.162 to read as follows:
	Sec. 11.162.  COMMERCIAL FISHING BOATS AND EQUIPMENT.  (a)  
In this section, "boat" means a vessel that does not exceed 100 feet 
in length.
	(b)  A person is entitled to an exemption from taxation of 
each boat the person owns and uses primarily in the taking or 
production of fish, shrimp, shellfish, or other marine life to sell 
as food for human consumption.
	(c)  The exemption provided by this section also applies to 
nets and other equipment used primarily in connection with the use 
of the boat for the exempt purposes provided by Subsection (b).
	SECTION 2.   Section 11.43(c), Tax Code, is amended to read 
as follows:      
	(c)  An exemption provided by Section 11.13, 11.162, 11.17, 
11.18, 11.182, 11.183, 11.19, 11.20, 11.21, 11.22, 11.23(j), 11.29, 
11.30, or 11.31, once allowed, need not be claimed in subsequent 
years, and except as otherwise provided by Subsection (e), the 
exemption applies to the property until it changes ownership or the 
person's qualification for the exemption changes.  However, the 
chief appraiser may require a person allowed one of the exemptions 
in a prior year to file a new application to confirm the person's 
current qualification for the exemption by delivering a written 
notice that a new application is required, accompanied by an 
appropriate application form, to the person previously allowed the 
exemption.
	SECTION 3.  This Act takes effect January 1, 2004, but only 
if the constitutional amendment proposed by the 78th Legislature, 
Regular Session, 2003, to exempt from ad valorem taxation certain 
commercial boats and equipment used for taking or producing fish, 
shrimp, shellfish, or other marine life is approved by the voters.  
If that proposed constitutional amendment is not approved by the 
voters, this Act has no effect.