Item 8ACITY OF
SOUTHLAKE
MEMORANDUM
October 15, 2013
To: Shana Yelverton, City Manager
From: Alicia Richardson, City Secretary
Subject: Consider Resolution No. 13-040, constitutional amendment
proposition 3, authorizing a political subdivision to extend number
of days that aircraft parts are exempt from ad valorem taxation.
Action
Requested: Consider Resolution No. 13-040.
Background
Information: The Texas Legislature, during their 83rd Regular Session approved
ten joint resolutions proposing nine particular constitutional
amendments to be considered by the voters.
Pursuant to Section 3.003 of the Texas Election Code, Governor
Rick Perry ordered a special election to be held throughout the
State of Texas on November 5, 2013 to consider the proposed
constitutional amendments.
A copy of the proclamation ordering the special election is attached
hereto.
Proposition No. 3 —
HJR 133 would authorize local political subdivisions to extend the
length of time that aircraft parts could remain temporarily in this
state before being subject to ad valorem taxation. Under current
law, merchandise, wares, and goods (including aircraft parts) may
remain in this state temporarily for up to 175 days before being
subject to ad valorem taxation; the proposed amendment would
permit taxing entities to extend the exemption up to 730 days after
the date that a person acquired or imported aircraft parts in the
state.
The proposed amendment will appear on the ballot as follows: "The
constitutional amendment to authorize a political subdivision of this
state to extend the number of days that aircraft parts that are
exempt from ad valorem taxation due to their location in this state
for a temporary period may be located in this state for purposes of
qualifying for the tax exemption."
Financial
Considerations: The City of Southlake could see a reduction, minimum if any, in tax
revenue if currently or in the future Southlake has a business in this
industry.
Strategic Link: Non -applicable
Citizen Input/
Board Review: Non -applicable
Legal Review: Non -applicable
Alternatives: None
Supporting
Documents: Resolution No. 13-040
Governor Proclamation
Staff
Recommendation: To discuss and consider Resolution No. 13-040.
RESOLUTION NO. 13-040
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, SUPPORTING CONSTITUTIONAL
AMENDMENT PROPOSITION 3, AUTHORIZING A
POLITICAL SUBDIVISION TO EXTEND NUMBER OF
DAYS THAT AIRCRAFT PARTS ARE EXEMPT FROM AD
VALOREM TAXATION.
WHEREAS, the Texas Legislature convened in January 2013; and
WHEREAS, during the 83rd Regular Session, the legislature approved ten joint
resolutions proposing nine particular constitutional amendments; and
WHEREAS, proposed constitutional amendment No. 3 would authorize local
political subdivisions to extend the length of time that aircraft parts could remain
temporarily in this state before being subject to ad valorem taxation; and
WHEREAS, under current law, merchandise, wares, and goods (including
aircraft parts) may remain in this state temporarily for up to 175 days before being
subject to ad valorem taxation; and
WHEREAS, the proposed amendment would permit taxing entities to extend the
exemption up to 730 days after the date that a person acquired or imported aircraft
parts in the state.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS, THAT:
Section 1. The City Council supports the passage of Proposition 3 authorizing a
political subdivision to extend number of days that aircraft parts are
exempt from ad valorem taxation.
Section 2. This resolution is hereby effective upon passage and approval by the City
Council.
PASSED AND APPROVED THIS THE 151" DAY OF October 2013.
CITY OF SOUTHLAKE, TEXAS
John C. Terrell
Mayor
ATTEST:
Alicia Richardson, TRMC
City Secretary