83R9129 TJB-D

By: Harper-Brown H.J.R. No. 133

A JOINT RESOLUTION

proposing a constitutional amendment to authorize a political subdivision of this state to extend the number of days that certain tangible personal property that is exempt from ad valorem taxation due to its location in this state for a temporary period may be located in this state for purposes of qualifying for the tax exemption.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1-j, Article VIII, Texas Constitution, is amended by amending Subsection (a) and adding Subsection (d) to read as follows:

(a) To promote economic development in the State, goods, wares, merchandise, other tangible personal property, and ores, other than oil, natural gas, and other petroleum products, are exempt from ad valorem taxation by a political subdivision of this State if:

(1) the property is acquired in or imported into this State to be forwarded outside this State, whether or not the intention to forward the property outside this State is formed or the destination to which the property is forwarded is specified when the property is acquired in or imported into this State;

(2) the property is detained in this State for assembling, storing, manufacturing, processing, or fabricating purposes by the person who acquired or imported the property; and

(3) the property is transported outside of this State not later than:

(A) 175 days after the date the person acquired or imported the property in this State; or

(B) a later date established by the governing body of the political subdivision under Subsection (d) of this section.

(d) The governing body of a political subdivision, in the manner provided by law for official action, may extend the date by which property exempted from ad valorem taxation under this section must be transported outside the State to a date not later than the 730th day after the date the person acquired or imported the property in this State. An extension adopted by official action under this subsection applies only to the exemption from ad valorem taxation by the political subdivision adopting the extension. The legislature by general law may provide the manner by which the governing body may extend the period of time as authorized by this subsection.

SECTION 2. Section 1-n, Article VIII, Texas Constitution, as proposed by S.J.R. 6, 77th Legislature, Regular Session, 2001, is amended by amending Subsection (a) and adding Subsection (f) to read as follows:

(a) To promote economic development in this state, the legislature by general law may exempt from ad valorem taxation by a political subdivision of this state goods, wares, merchandise, other tangible personal property, and ores, other than oil, natural gas, and other petroleum products, if:

(1) the property is acquired in or imported into this state to be forwarded to another location in this state or outside this state, whether or not the intention to forward the property to another location in this state or outside this state is formed or the destination to which the property is forwarded is specified when the property is acquired in or imported into this state;

(2) the property is detained at a location in this state that is not owned or under the control of the property owner for assembling, storing, manufacturing, processing, or fabricating purposes by the person who acquired or imported the property; and

(3) the property is transported to another location in this state or outside this state not later than:

(A) 270 days after the date the person acquired the property in or imported the property into this state; or

(B) a later date established by the governing body of the political subdivision under Subsection (f) of this section.

(f) The governing body of a political subdivision, in the manner provided by law for official action, may extend the date by which property exempted from ad valorem taxation under this section must be transported outside the state to a date not later than the 730th day after the date the person acquired the property in or imported the property into this state. An extension adopted by official action under this subsection applies only to the exemption from ad valorem taxation by the political subdivision adopting the extension. The legislature by general law may provide the manner by which the governing body may extend the period of time as authorized by this subsection.

SECTION 3. The following temporary provision is added to the Texas Constitution:

TEMPORARY PROVISION. (a) This temporary provision applies to the constitutional amendment proposed by the 83rd Legislature, Regular Session, 2013, to authorize a political subdivision of this state to extend the number of days that certain tangible personal property that is exempt from ad valorem taxation due to its location in this state for a temporary period may be located in this state for purposes of qualifying for the tax exemption.

(b) The amendments to Sections 1-j(a) and 1-n(a), Article VIII, of this constitution and the addition of Sections 1-j(d) and 1-n(f), Article VIII, to this constitution take effect January 1, 2014, and apply only to a tax year that begins on or after that date.

(c) This temporary provision expires January 1, 2015.

SECTION 4. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 5, 2013. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment to authorize a political subdivision of this state to extend the number of days that certain tangible personal property that is exempt from ad valorem taxation due to its location in this state for a temporary period may be located in this state for purposes of qualifying for the tax exemption."