TITLE: Proposing a constitutional amendment authorizing the legislature to phase out by 2027 the ad valorem taxation by a school district of the tangible personal property a person owns that consists of inventory.

SUMMARY: Proposing a constitutional amendment authorizing the legislature to phase out by 2027 the ad valorem taxation by a school district of the tangible personal property a person owns that consists of inventory.

FULL TEXT:
85(R) HJR 48-Introduced version-Bill Text 85R3220 TJB-D By: Workman H.J.R. No. 48 A JOINT RESOLUTION proposing a constitutional amendment authorizing the legislature to phase out by 2027 the ad valorem taxation by a school district of the tangible personal property a person owns that consists of inventory. BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Article VIII, Texas Constitution, is amended by adding Section 1-q to read as follows: Sec. 1-q. (a) The legislature by general law may exempt from ad valorem taxation by a school district the market value of the tangible personal property a person owns that consists of inventory. (b) The legislature by general law may provide additional eligibility requirements for the exemption authorized by this section. (c) The legislature by general law may prescribe procedures for the administration of this section. (d) Subsection (a) of this section applies to the ad valorem taxation by a school district of tangible personal property that consists of inventory only for the 2027 and subsequent tax years. The ad valorem taxation by a school district of tangible personal property that consists of inventory for the 2018, 2019, 2020, 2021, 2022, 2023, 2024, 2025, and 2026 tax years is governed by this subsection. The legislature by general law may exempt from ad valorem taxation by a school district a percentage of the market value of the tangible personal property a person owns that consists of inventory. For the 2018 tax year, the amount of the exemption may not exceed 10 percent of the market value of the inventory. For the 2019 tax year, the amount of the exemption may not exceed 20 percent of the market value of the inventory. For the 2020 tax year, the amount of the exemption may not exceed 30 percent of the market value of the inventory. For the 2021 tax year, the amount of the exemption may not exceed 40 percent of the market value of the inventory. For the 2022 tax year, the amount of the exemption may not exceed 50 percent of the market value of the inventory. For the 2023 tax year, the amount of the exemption may not exceed 60 percent of the market value of the inventory. For the 2024 tax year, the amount of the exemption may not exceed 70 percent of the market value of the inventory. For the 2025 tax year, the amount of the exemption may not exceed 80 percent of the market value of the inventory. For the 2026 tax year, the amount of the exemption may not exceed 90 percent of the market value of the inventory. This subsection expires January 1, 2027. SECTION 2. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 7, 2017. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment authorizing the legislature to phase out by 2027 the ad valorem taxation by a school district of the tangible personal property a person owns that consists of inventory."