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The Texas Constitution provides that the Legislature, by a two-thirds vote of all members of each house, may propose amendments revising the constitution. The proposed amendments must then be submitted for approval to the qualified voters of the state. This Austin Update will summarize propositions #10 and #14 in the upcoming constitutional amendment election which will be held November 6.
PROPOSITION #10: GOODS-IN-TRANSIT TAX EXEMPTION: Currently, Texas offers a "freeport" tax exemption to property acquired in or imported into the state for export. These in-transit products must be stored for up to 175 days for assembly, manufacturing or processing, and they must be shipped out of the state. This amendment would allow taxing entities to exempt the same type of property held for up to 270 days in the warehouse for shipment to locations both in and out of the state.
Proponents say: States along our borders have taken warehouse business away from Texas. The amendment would help Texas regain its share of the warehousing and distribution markets. The current "freeport"exemption does not apply to goods shipped to Texas destinations.
Opponents say: Creating a new exemption would result in substantial costs to the state as well as local governments. This amendment shows favoritism to a single industry with little ripple effect. The state should not be lured into a tax-break war with other states for dubious returns. PROPOSITION #14: TAX EXEMPTION FOR TRAVEL TRAILERS: This amendment would allow the Legislature to authorize tax exemptions to owners of registered, non-income-producing travel trailers, regardless of whether they are real or personal property.
Proponents say: In recent years, travel trailers have become increasingly popular in Texas as recreational vehicles and winter homes. Travel trailers are taxed when they are purchased, and owners must also pay annual registration fees in order to move or sell them. Taxing the trailers again as property is excessive.
Opponents say: Allowing these exemptions would create a special type of homeowner. If owners live in the travel trailers, they should be taxed as real property, like manufactured homes.
Questions and comments about the November election may be sent to the Secretary of State by email at: elections@sos.state.tx.us or you may call the Elections Division at toll free 1-800-252-VOTE.
State Representative Ron Clark
P.O. Box 2910
Austin, TX 78768-2910
(903) 893-9426 * (512) 463-0474
(512) 475-3767 (fax)
ron.clark@house.state.tx.us
http://www.grayson.edu/district62/RonClark.html
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