Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation by one or more political subdivisions tangible personal property used by the owner of the property to manufacture, process, or fabricate tangible personal property for ultimate sale.
Impact
If passed, this bill would amend Article VIII of the Texas Constitution by adding Section 1-t. With this amendment, state lawmakers could create laws to exempt specific tangible personal property from taxation by various political subdivisions. The potential result would be a more favorable economic framework for manufacturers, potentially attracting more businesses to the state. This could lead to job creation and increased economic activity focused on manufacturing.
Summary
HJR140 is a joint resolution proposing a constitutional amendment that would allow the Texas legislature to exempt certain tangible personal property from ad valorem taxation. Specifically, this tax exemption would apply to property used by its owner for manufacturing, processing, or fabrication of goods intended for ultimate sale. This change aims to provide financial relief to manufacturing entities by reducing their tax burden, fostering an environment conducive to business growth.
Election
The resolution indicates that the proposed constitutional amendment will be subject to voter approval during an election set for November 3, 2015. The outcome of this vote will determine whether the legislature will have the authority to enact such tax exemptions, further exemplifying the democratic principle of allowing citizens to participate in significant fiscal policy decisions.
Contention
While proponents of HJR140 argue that the tax exemption will bolster Texas's manufacturing sector and enhance the state's competitive advantage, opponents may express concerns over the implications of tax revenue losses for local entities. There are worries that such tax exemptions could lead to a reliance on state-level funding for public services traditionally supported by local tax revenues, thereby creating fiscal disparities among different areas. The discourse surrounding this bill emphasizes the need to balance economic growth with sustainable local funding.
Enabled by
Relating to the exemption from ad valorem taxation of certain tangible personal property used by the owner of the property to manufacture, process, or fabricate tangible personal property for ultimate sale.
Identical
Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation by one or more political subdivisions tangible personal property used by the owner of the property to manufacture, process, or fabricate tangible personal property for ultimate sale.
Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail.
Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation certain tangible personal property held by a manufacturer of medical or biomedical products as a finished good or used in the manufacturing or processing of medical or biomedical products.
Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation income-producing tangible personal property having a value of less than a certain amount.
Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation income-producing tangible personal property having a value of less than a certain amount.
Relating to an exemption from ad valorem taxation of tangible personal property consisting of animal feed held by the owner of the property for sale at retail.
Relating to the exemption from ad valorem taxation of certain tangible personal property held by a manufacturer of medical or biomedical products as a finished good or used in the manufacturing or processing of medical or biomedical products.