Bill

HJR 38

85(1) - 2017
House Ways and Means
House Ways and Means

Vote Recommendation

Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral

Author(s)

Giovanni Capriglione

Bill Caption

Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation precious metal held in the Texas Bullion Depository.

Fiscal Notes

From LBB: No significant fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $114,369.

Bill Analysis

This bill proposes an amendment to the Texas constitution to permit the legislature to "exempt from ad valorem taxation precious metal held in the Texas Bullion Depository" and to define the term "precious metal" as it relates to this exemption. 

Vote Recommendation Notes

This bill exempts an entire class of property from taxation to the equal benefit of all owners of that type of property. However, this would also have the effect of using the tax system to encourage people to store their precious metals in a specific depository instead of using other storage options that may be available to them. This is a form of picking winners and losers in the economy through state policy. We support the concept of exempting precious metals from taxation but oppose using tax policy to incentivize utilization of a state-preferred storage option. For these reasons we remain neutral on this constitutional amendment and its related enabling legislation.