HBA-RBT H.J.R. 94 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.J.R. 94
By: Janek
Ways and Means
4/23/1999
Introduced



BACKGROUND AND PURPOSE 

Article VIII, Section 1-j of the Texas Constitution allows counties to
establish freeport zones, in which counties exempt from ad valorem taxation
all or part of the value of certain personal property located in the county
temporarily for assembling, manufacturing or other commercial purposes, or
to exempt that property from taxation if the property is located within a
defined zone established by the commissioners court.  As proposed, H.J.R.
94 requires the submission to the voters of a constitutional amendment
allowing the commissioners court of a county with a population of 2.8
million or more to establish a freeport zone within the county. 
 
RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1-j, Article VIII, Texas Constitution, by adding
new Subsections (c)(e) and redesignating existing Subsection (c) as
Subsection (f), as follows: 

(c)  Authorizes the commissioners court of a county with a population of
2.8 million or more that previously acted under Subsection (b) of this
section to tax personal property described by Subsection (a) of this
section by official action to exempt from taxation by that county all or a
specified percentage of the value of the property.  Authorizes the
commissioners court of a county that exempts a specified percentage of the
value of the property from taxation under this subsection by official
action to subsequently exempt from taxation all or a greater percentage of
the value of that property.  Prohibits the commissioners court from
subsequently reducing the percentage of the value of the property exempted
under this subsection or rescinding or repealing an exemption granted under
this subsection.  
 
(d)  Authorizes the commissioners court of a county with a population of
2.8 million or more that previously acted under Subsection (b) of this
section to tax personal property described by Subsection (a) of this
section by official action to designate any area in the county as a
freeport zone and exempt from taxation all or a specified percentage of the
value of personal property described by Subsection (a) of this section that
is located in that zone.  
 
(e)  Provides that an action taken under Subsection (c) or (d) of this
section is effective on January 1 of the year following the year in which
the action is taken, unless the commissioners court by official action
provides that the action is effective as of January 1 of the year in which
the action is taken.  
 
(f) Redesignated from Subsection (c).

SECTION 2.  Requires this proposed constitutional amendment to be submitted
to the voters at an election to be held November 2, 1999.  Sets forth the
language of the ballot.