1987-12-07 Workshop Meeting and Called Regular Meeting

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It e ~ ( ( '; KNOX W. ASKINS, ..J. D., P. C. ATTORNEY AT LAW 702 W. F"AIRMONT PARKWAY P. O. SOX 121S LA PORTE. TEXAS 77571-1218 TELEPHONE 713 471'ISSe .JOHN D. ARMSTRONG. .J.D. ASSOCIATE November 24, 1987 Mr. Robert T. Herrera City Manager City of la Porte City Hall La Porte, Texas , Re: Ad Valorem Taxation of Private Airplanes and Private Boats Dear Bob: I enclose a copy of S.J.R. No. 12, the proposed constitutional amendment to exempt from ad valorem taxation, property not held for the production of income. Also included in this proposed amendment, was an amendment as to certain personal property temporarily located in the State. You have requested my opinion as to whether City Council needs to take any action during calendar year 1987, to assure the tax exemption of airplanes in 1988. That portion of the amendment is covered in Section 1 (d)(2) and Subparagraph (e) thereof. Some constitutional amendments are self executing, which means that they do not require further legislative action; other constitution amendments are permissive, in the sen~e that they grant discretion or authority to the legislature to pass a general law on the subject, after passage of the constitutional amendment. Of the latter, sometimes the legislature will anticipate the passage of the constitutional amendment, by provisionally passing a law thereunder, which only comes into effect if the constitutional amendment passes. The portion of this constitutional amendment authorized by S.J.R. No. 12, which would exempt from taxation, .property not held for the production of income, was not self executing. Further, a review of the session laws for the 1987 regular session, and the first and second call sessions of the legislature, reveal no provisionally passed legislation on the subject. Essentially, this constitutes an amendment, approved by the voters at the election of November 3, 1987, which states that the legislature "may exempt from ad valorem taxation: (2) subject to Subsection (e) of this section, all other tangible personal property, except structures which are personal property and are used or occupied as residential dwellings and except property held or used for the production of income." . (e) the governing body of a political subdivision may provide for the taxation of all property exempt under a law adopted under Subdivision 2 of Section (d) of this section and not exempt from ad valorem taxation by any other lal.."