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A JOINT RESOLUTION
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proposing a constitutional amendment authorizing the legislature |
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to exempt from ad valorem taxation rent-to-own property not held by |
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the lessee primarily to produce income and to prescribe the method |
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to be used to depreciate taxable rent-to-own property for tax |
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appraisal purposes. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1, Article VIII, Texas Constitution, is |
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amended by amending Subsections (d) and (e) and adding Subsection |
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(j) to read as follows: |
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(d) The Legislature by general law shall exempt from ad |
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valorem taxation household goods not held or used for the |
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production of income and personal effects not held or used for the |
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production of income. The Legislature by general law may exempt |
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from ad valorem taxation: |
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(1) all or part of the personal property homestead of a |
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family or single adult, "personal property homestead" meaning that |
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personal property exempt by law from forced sale for debt; |
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(2) subject to Subsections (e) and (g) of this |
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section, all other tangible personal property, except structures |
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which are substantially affixed to real estate and are used or |
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occupied as residential dwellings and except property held or used |
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for the production of income; [and] |
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(3) subject to Subsection (e) of this section, a |
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leased motor vehicle that is not held primarily for the production |
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of income by the lessee and that otherwise qualifies under general |
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law for exemption; and |
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(4) subject to Subsection (e) of this section, |
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tangible personal property of a type intended for personal use |
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within the home that is subject to a rent-to-own contract, is not |
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held primarily for the production of income by the lessee, and |
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otherwise qualifies under general law for exemption. |
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(e) The governing body of a political subdivision may |
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provide for the taxation of all property exempt under a law adopted |
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under Subdivision (2), [or] (3), or (4) of Subsection (d) of this |
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section and not exempt from ad valorem taxation by any other law. |
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The Legislature by general law may provide limitations to the |
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application of this subsection to the taxation of vehicles exempted |
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under the authority of Subdivision (3) of Subsection (d) of this |
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section or to the taxation of rent-to-own property exempted under |
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the authority of Subdivision (4) of Subsection (d) of this section. |
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(j) The Legislature by general law may prescribe the method |
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to be used to depreciate tangible personal property for the purpose |
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of appraising the property for ad valorem taxation if the property |
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is of a type intended for personal use within the home and is owned |
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by a dealer engaged in the business of leasing that type of property |
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to customers under rent-to-own contracts. The method may provide |
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for the complete depreciation of the property over a period of not |
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less than three years. |
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SECTION 2. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 6, 2007. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment authorizing the |
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legislature to exempt from ad valorem taxation rent-to-own property |
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not held by the person renting the property primarily to produce |
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income and to prescribe the method to be used to depreciate taxable |
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rent-to-own property for tax appraisal purposes." |