H.B. No. 366
    1-1                                AN ACT
    1-2  relating to the exemption from ad valorem taxation of
    1-3  income-producing tangible personal property and mineral interests
    1-4  having a value of less than a certain amount.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
    1-7  adding Sections 11.145 and 11.146 to read as follows:
    1-8        Sec. 11.145.  INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY
    1-9  HAVING VALUE OF LESS THAN $500.   (a)  A person is entitled to an
   1-10  exemption from taxation of the tangible personal property the
   1-11  person owns that is held or used for the production of income if
   1-12  that property has a taxable value of less than $500.
   1-13        (b)  The exemption provided by Subsection (a) applies to each
   1-14  separate taxing unit in which a person holds or uses tangible
   1-15  personal property for the production of income, and, for the
   1-16  purposes of Subsection (a), all property in each taxing unit is
   1-17  aggregated to determine taxable value.
   1-18        Sec. 11.146.  MINERAL INTEREST HAVING VALUE OF LESS THAN
   1-19  $500.  (a)  A person is entitled to an exemption from taxation of a
   1-20  mineral interest the person owns if the interest has a taxable
   1-21  value of less than $500.
   1-22        (b)  The exemption provided by Subsection (a) applies to each
   1-23  separate taxing unit in which a person owns a mineral interest and,
   1-24  for the purposes of Subsection (a), all mineral interests in each
    2-1  taxing unit are aggregated to determine value.
    2-2        SECTION 2.  Section 11.43(a), Tax Code, is amended to read as
    2-3  follows:
    2-4        (a)  To receive an exemption, a person claiming the
    2-5  exemption, other than an exemption authorized by Section 11.11,
    2-6  11.12, 11.14, 11.145, 11.146, 11.15, 11.16, or 11.161 of this code,
    2-7  must apply for the exemption.  To apply for an exemption, a person
    2-8  must file an exemption application form with the chief appraiser
    2-9  for each appraisal district in which the property subject to the
   2-10  claimed exemption has situs.
   2-11        SECTION 3.  This Act takes effect January 1, 1996, but only
   2-12  if the constitutional amendment proposed by the 74th Legislature,
   2-13  Regular Session, 1995, authorizing the legislature to exempt from
   2-14  ad valorem taxation personal property and mineral interests having
   2-15  a value insufficient to recover the administrative costs of
   2-16  collecting the taxes is approved by the voters.  If that amendment
   2-17  is not approved by the voters, this Act has no effect.
   2-18        SECTION 4.  The importance of this legislation and the
   2-19  crowded condition of the calendars in both houses create an
   2-20  emergency and an imperative public necessity that the
   2-21  constitutional rule requiring bills to be read on three several
   2-22  days in each house be suspended, and this rule is hereby suspended.