...Back to Proposition Three
Arguments in Favor of Proposition Three:
According to arguments of supporters included in the Texas Legislative Council’s (TLC) analysis, most states do not levy a general property tax on inventory, putting Texas at a competitive disadvantage. While Texas has a freeport exemption that applies to airplane parts, these parts are not like other goods, because they often must be held for long periods of time. According to supporters cited by the House Research Organization, it is not uncommon for airplane parts to sit in a warehouse for 600 days. The short term of the freeport exemption puts means that warehouses in Texas must pay taxes they would not have to pay in most other states. Airplane parts distributors play an important role in supporting the aircraft manufacturing and aerospace industries. According to the Texas Association of Manufacturers, Texas has more than 240 aerospace and aircraft manufacturing companies, placing it among the top three in nation, strongly contributing to the state’s economy and providing hundreds of thousands of jobs. Extending the freeport exemption period will help the economic growth of the state of Texas, bringing benefits to everybody through more jobs and higher revenue.
Arguments in Opposition to Proposition Three:
According to the Texas Legislative Council, no opposition to the amendment was raised in the legislature. Nonetheless, two opposing views have been expressed. The House Research Organization reports that some have argued that airplane parts are being unfairly singled out, and the freeport exemption should be eliminated entirely. According to Ballotpedia, the Austin Chronicle called this “a giveaway for aircraft manufacturers.”