79R6989 SMH-D

By:  Otto                                                       H.J.R. No. 65 



A JOINT RESOLUTION

proposing a constitutional amendment authorizing the legislature 
to exempt from ad valorem taxation rent-to-own property not held by 
the lessee primarily to produce income and to prescribe the method 
to be used to depreciate taxable rent-to-own property for tax 
appraisal purposes.
	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:                       
	SECTION 1.  Section 1, Article VIII, Texas Constitution, is 
amended by amending Subsections (d) and (e) and adding Subsection 
(j) to read as follows:
	(d)  The Legislature by general law shall exempt from ad 
valorem taxation household goods not held or used for the 
production of income and personal effects not held or used for the 
production of income.  The Legislature by general law may exempt 
from ad valorem taxation:
		(1)  all or part of the personal property homestead of a 
family or single adult, "personal property homestead" meaning that 
personal property exempt by law from forced sale for debt;
		(2)  subject to Subsections (e) and (g) of this 
section, all other tangible personal property, except structures 
which are substantially affixed to real estate and are used or 
occupied as residential dwellings and except property held or used 
for the production of income;  [and]
		(3)  subject to Subsection (e) of this section, a 
leased motor vehicle that is not held primarily for the production 
of income by the lessee and that otherwise qualifies under general 
law for exemption; and
		(4)  subject to Subsection (e) of this section, 
tangible personal property of a type intended for personal use 
within the home that is subject to a rent-to-own contract, is not 
held primarily for the production of income by the lessee, and 
otherwise qualifies under general law for exemption.
	(e)  The governing body of a political subdivision may 
provide for the taxation of all property exempt under a law adopted 
under Subdivision (2), [or] (3), or (4) of Subsection (d) of this 
section and not exempt from ad valorem taxation by any other law.  
The Legislature by general law may provide limitations to the 
application of this subsection to the taxation of vehicles exempted 
under the authority of Subdivision (3) of Subsection (d) of this 
section or to the taxation of rent-to-own property exempted under 
the authority of Subdivision (4) of Subsection (d) of this section.
	(j)  The Legislature by general law may prescribe the method 
to be used to depreciate tangible personal property for the purpose 
of appraising the property for ad valorem taxation if the property 
is of a type intended for personal use within the home and is owned 
by a dealer engaged in the business of leasing that type of property 
to customers under rent-to-own contracts.  The method may provide 
for the complete depreciation of the property over a period of not 
less than three years.
	SECTION 2.  This proposed constitutional amendment shall be 
submitted to the voters at an election to be held November 8, 2005.  
The ballot shall be printed to permit voting for or against the 
proposition:  "The constitutional amendment authorizing the 
legislature to exempt from ad valorem taxation rent-to-own property 
not held by the person renting the property primarily to produce 
income and to prescribe the method to be used to depreciate taxable 
rent-to-own property for tax appraisal purposes."