Amend CSHB 3 by adding the following section to the bill, 

appropriately numbered, and renumbering existing sections 

accordingly:

	SECTION __.  (a)  Section 21.02, Tax Code, is amended by 

amending Subsection  (a)  and adding Subsection (d) to read as 

follows:

	(a)  Except as provided by Subsections [Subsection] (b) and 

(d) and by Sections 21.021, 21.04, and 21.05, tangible personal 

property is taxable by a taxing unit if:

		(1)  it is located in the unit on January 1 for more 

than a temporary period;

		(2)  it normally is located in the unit, even though it 

is outside the unit on January 1, if it is outside the unit only 

temporarily;

		(3)  it normally is returned to the unit between uses 

elsewhere and is not located in any one place for more than a 

temporary period; or

		(4)  the owner resides (for property not used for 

business purposes) or maintains the owner's [his] principal place 

of business in this state (for property used for business purposes) 

in the unit and the property is taxable in this state but does not 

have a taxable situs pursuant to Subdivisions (1) through (3) of 

this section.

	(d)  This subsection does not apply to a drilling rig 

designed for offshore drilling or exploration operations.  A mobile 

portable drilling rig, and equipment associated with the drilling 

rig, is taxable by the taxing unit in which the rig is located on 

January 1 if the rig was located in the appraisal district that 

appraises property for the unit for the preceding 365 consecutive 

days.  If the rig and associated equipment was not located in the 

appraisal district where it is located on January 1 for the 

preceding 365 days, it is taxable by the taxing unit in which the 

owner's principal place of business in this state is located on 

January 1.

	(b)  Section 21.02, Tax Code, as amended by Subsection (a) of 

this section, applies only to an ad valorem tax year that begins on 

or after January 1, 2006.

	(c)  This section takes effect January 1, 2006.