A JOINT RESOLUTION
1-1 proposing a constitutional amendment authorizing the legislature
1-2 to exempt from ad valorem taxation rent-to-own property not held by
1-3 the lessee primarily to produce income and to prescribe the method
1-4 to be used to depreciate taxable rent-to-own property for tax
1-5 appraisal purposes.
1-6 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Section 1, Article VIII, Texas Constitution, is
1-8 amended by amending Subsections (d) and (e) and adding Subsection
1-9 (j) to read as follows:
1-10 (d) The Legislature by general law shall exempt from ad
1-11 valorem taxation household goods not held or used for the
1-12 production of income and personal effects not held or used for the
1-13 production of income. The Legislature by general law may exempt
1-14 from ad valorem taxation:
1-15 (1) all or part of the personal property homestead of a
1-16 family or single adult, "personal property homestead" meaning that
1-17 personal property exempt by law from forced sale for debt;
1-18 (2) subject to Subsections (e) and (g) of this
1-19 section, all other tangible personal property, except structures
1-20 which are substantially affixed to real estate and are used or
1-21 occupied as residential dwellings and except property held or used
1-22 for the production of income; [and]
1-23 (3) subject to Subsection (e) of this section, a
1-24 leased motor vehicle that is not held primarily for the production
2-1 of income by the lessee and that otherwise qualifies under general
2-2 law for exemption; and
2-3 (4) subject to Subsection (e) of this section,
2-4 tangible personal property of a type intended for personal use
2-5 within the home that is subject to a rent-to-own contract, is not
2-6 held primarily for the production of income by the lessee, and
2-7 otherwise qualifies under general law for exemption.
2-8 (e) The governing body of a political subdivision may
2-9 provide for the taxation of all property exempt under a law adopted
2-10 under Subdivision (2), [or] (3), or (4) of Subsection (d) of this
2-11 section and not exempt from ad valorem taxation by any other law.
2-12 The Legislature by general law may provide limitations to the
2-13 application of this subsection to the taxation of vehicles exempted
2-14 under the authority of Subdivision (3) of Subsection (d) of this
2-15 section or to the taxation of rent-to-own property exempted under
2-16 the authority of Subdivision (4) of Subsection (d) of this section.
2-17 (j) The Legislature by general law may prescribe the method
2-18 to be used to depreciate tangible personal property for the purpose
2-19 of appraising the property for ad valorem taxation if the property
2-20 is of a type intended for personal use within the home and is owned
2-21 by a dealer engaged in the business of leasing that type of property
2-22 to customers under rent-to-own contracts. The method may provide
2-23 for the complete depreciation of the property over a period of not
2-24 less than three years.
2-25 SECTION 2. This proposed constitutional amendment shall be
2-26 submitted to the voters at an election to be held November 6, 2007.
2-27 The ballot shall be printed to permit voting for or against the
3-1 proposition: "The constitutional amendment authorizing the
3-2 legislature to exempt from ad valorem taxation rent-to-own property
3-3 not held by the person renting the property primarily to produce
3-4 income and to prescribe the method to be used to depreciate taxable
3-5 rent-to-own property for tax appraisal purposes."