| 1 | 1 | | 88R9635 TJB-D |
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| 2 | 2 | | By: Raney H.J.R. No. 104 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A JOINT RESOLUTION |
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| 6 | 6 | | proposing a constitutional amendment to authorize the legislature |
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| 7 | 7 | | to exempt from ad valorem taxation a percentage of the market value |
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| 8 | 8 | | of the tangible personal property a person owns that consists of |
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| 9 | 9 | | inventory held for sale at retail. |
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| 10 | 10 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Article VIII, Texas Constitution, is amended by |
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| 12 | 12 | | adding Section 1-w to read as follows: |
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| 13 | 13 | | Sec. 1-w. (a) The legislature by general law may exempt |
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| 14 | 14 | | from ad valorem taxation a percentage not to exceed 75 percent of |
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| 15 | 15 | | the market value of the tangible personal property a person owns |
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| 16 | 16 | | that consists of inventory held for sale at retail. |
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| 17 | 17 | | (b) The legislature by general law may define "inventory" |
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| 18 | 18 | | for the purposes of this section. |
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| 19 | 19 | | (c) Subsection (a) of this section applies to the ad valorem |
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| 20 | 20 | | taxation of tangible personal property that consists of inventory |
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| 21 | 21 | | held for sale at retail only for the 2026 and subsequent tax years. |
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| 22 | 22 | | The ad valorem taxation of tangible personal property that consists |
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| 23 | 23 | | of inventory held for sale at retail for the 2024 and 2025 tax years |
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| 24 | 24 | | is governed by this subsection. The legislature by general law may |
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| 25 | 25 | | exempt from ad valorem taxation a percentage of the market value of |
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| 26 | 26 | | the tangible personal property a person owns that consists of |
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| 27 | 27 | | inventory held for sale at retail. For the 2024 tax year, the amount |
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| 28 | 28 | | of the exemption may not exceed 20 percent of the market value of |
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| 29 | 29 | | the inventory. For the 2025 tax year, the amount of the exemption |
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| 30 | 30 | | may not exceed 50 percent of the market value of the inventory. |
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| 31 | 31 | | This subsection expires January 1, 2026. |
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| 32 | 32 | | SECTION 2. This proposed constitutional amendment shall be |
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| 33 | 33 | | submitted to the voters at an election to be held November 7, 2023. |
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| 34 | 34 | | The ballot shall be printed to permit voting for or against the |
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| 35 | 35 | | proposition: "The constitutional amendment to authorize the |
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| 36 | 36 | | legislature to exempt from ad valorem taxation a percentage of the |
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| 37 | 37 | | market value of the tangible personal property a person owns that |
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| 38 | 38 | | consists of inventory held for sale at retail." |
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