Bill Caption

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.

Fiscal Notes

The proposed amendment to Section 1-j, Article VIII, of the Texas Constitution, to authorize the governing body of certain political subdivisions to extend by official action the number of days that qualifying aircraft parts may remain in this state (currently 175 days) before losing eligibility for a property tax exemption is self-enabling and, to the extent that taxing units choose to make the extension, would create a cost to the state through the operation of the school finance formula. The cost to the state for publication of the resolution is $108,921.

Bill Analysis

Summary: HJR 133 would temporarily amend Texas’ Constitution to allow certain political subdivisions to extend the “freeport exemption,” from 175 days to 730 days. This exemption allows qualifying aircraft parts to remain in Texas without being assessed for property tax.

Analysis: Support HJR 133 because it limits government by extending a tax exemption that limits the amount of revenue government can draw from taxing aircraft parts, and it promotes the property rights of people who own these aircraft parts by allowing them to keep more of their resources.