Amending Texas’ Constitution, understanding the ballot
Early voting begins Oct. 21 and the Navasota Examiner will publish the 10 proposed Constitutional amendments over the next few weeks. The Condensed Analyses of Proposed Constitutional Amendments, 86th Legislative Session for the Nov. 5, 2019 Election is published by the Texas Legislative Council and available at: https://www.tlc.texas.gov/docs/amendments/analyses19_condensed.pdf.A detailed analysis is available at: https://www.tlc.texas.gov/docs/amendments/analyses19.pdf.
Summary of Comments
The following comments supporting or opposing the proposed constitutional amendment reflect positions that were presented in committee proceedings, during house or senate floor debate, or in the analysis of the resolution prepared by the House Research Organization (HRO) when the resolution was considered by the House of Representatives.
Proposition 9 (H.J.R. 95)
The constitutional amendment authorizing the legislature to exempt from ad valorem taxation precious metal held in a precious metal depository located in this state.
Summary Analysis
H.J.R. 95 would allow the legislature by general law to exempt from ad valorem taxation by a political subdivision precious metal held in a precious metal depository in the state. The resolution further authorizes the legislature by general law to define “precious metal” and “precious metal depository” for purposes of the exemption.
Comments by Supporters
• Precious metal held in a depository is considered personal property under the Tax Code. Personal property that is not held for the purpose of producing income is exempt from property taxation, but a local taxing unit can bypass the exemption and opt to tax such property. The amendment would eliminate any uncertainty about the taxable status of precious metal held in commercial depositories.
• Subjecting precious metal to property taxation puts Texas depositories and precious metal owners at a competitive disadvantage, since other states do not do so.
• Providing an explicit exemption for precious metal held in a Texas depository, regardless of whether the precious metal is held for the production of income, would encourage owners of such metal to keep their holdings in the state, making Texas depositories more competitive.
• The amount of lost property tax revenue would be negligible.
Comments by Opponents
• If the amendment passes, a business may be able to escape taxation of its income producing precious metal inventory by holding it in a depository, which could reduce taxable property values and create a cost to local taxing units and the state.
• Using the tax system to encourage the purchase and holding of precious metal puts the government in the position of picking winners and losers in the economy.
Proposition 10 (S.J.R. 32)
The constitutional amendment to allow the transfer of a law enforcement animal to a qualified caretaker in certain circumstances.
Summary Analysis
The proposed amendment adds Section 52l, Article III, Texas Constitution, allowing the legislature to authorize the transfer of a law enforcement animal without charge to a caretaker. Legislation authorized by the amendment would allow the simple transfer of a law enforcement animal, avoiding constitutional and statutory requirements that currently can make the transfer more burdensome.
Comments by Supporters
• Law enforcement agencies would like to be able to transfer retired law enforcement animals into their handlers’ carefree of charge, and the preference of law enforcement agencies in this matter should be honored.
• Law enforcement animals generally live with their handlers while in service. Making it easier for such an animal to retire to the home where it has lived its entire life is in the best interest of the animal.
Comments by Opponents
• No opposition to the proposed constitutional amendment was expressed during legislative consideration of the proposal.