Texas 2009 - 81st Regular

Texas House Bill HB1726 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R8718 JD-F
2	2	By: Chavez H.B. No. 1726
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the exemption from ad valorem taxation of certain
8	8	tangible personal property stored temporarily at a location in this
9	9	state.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 11.253(a), Tax Code, as added by Chapter
12	12	830 (H.B. 621), Acts of the 80th Legislature, Regular Session,
13	13	2007, is amended by amending Subdivision (2) and adding
14	14	Subdivisions (5) and (6) to read as follows:
15	15	(2) "Goods-in-transit" means tangible personal
16	16	property that:
17	17	(A) is acquired in or imported into this state to
18	18	be forwarded to another location in this state or outside this
19	19	state;
20	20	(B) is stored under a contract of bailment by a
21	21	public warehouse operator [detained] at one or more public
22	22	warehouse facilities [a location] in this state that are not in any
23	23	way owned or controlled by [in which] the owner of the personal
24	24	property [does not have a direct or indirect ownership interest]
25	25	for the account of [assembling, storing, manufacturing,
26	26	processing, or fabricating purposes by] the person who acquired or
27	27	imported the property;
28	28	(C) is transported to another location in this
29	29	state or outside this state not later than 175 days after the date
30	30	the person acquired the property in or imported the property into
31	31	this state; and
32	32	(D) does not include oil, natural gas, petroleum
33	33	products, aircraft, dealer's motor vehicle inventory, dealer's
34	34	vessel and outboard motor inventory, dealer's heavy equipment
35	35	inventory, or retail manufactured housing inventory.
36	36	(5) "Bailee" and "warehouse" have the meanings
37	37	assigned by Section 7.102, Business & Commerce Code.
38	38	(6) "Public warehouse operator" means a person that:
39	39	(A) is both a bailee and a warehouse; and
40	40	(B) for hire stores, at one or more public
41	41	warehouse facilities, tangible personal property that is owned by
42	42	other persons solely for the account of those persons and not for
43	43	the operator's account.
44	44	SECTION 2. Section 11.253, Tax Code, as added by Chapter 830
45	45	(H.B. 621), Acts of the 80th Legislature, Regular Session, 2007, is
46	46	amended by amending Subsections (e) and (h) and adding Subsections
47	47	(j-1) and (j-2) to read as follows:
48	48	(e) In determining the market value of goods-in-transit
49	49	that in the preceding year were [assembled,] stored[, manufactured,
50	50	processed, or fabricated] in this state, the chief appraiser shall
51	51	exclude the cost of equipment, machinery, or materials that entered
52	52	into and became component parts of the goods-in-transit but were
53	53	not themselves goods-in-transit or that were not transported to
54	54	another location in this state or outside this state before the
55	55	expiration of 175 days after the date they were brought into this
56	56	state by the property owner or acquired by the property owner in
57	57	this state. For component parts held in bulk, the chief appraiser
58	58	may use the average length of time a component part was held by the
59	59	owner of the component parts during the preceding year at a location
60	60	in this state that was not owned by or under the control of the owner
61	61	of the component parts in determining whether the component parts
62	62	were transported to another location in this state or outside this
63	63	state before the expiration of 175 days.
64	64	(h) The chief appraiser by written notice delivered to a
65	65	property owner who claims an exemption under this section may
66	66	require the property owner to provide copies of property records so
67	67	the chief appraiser can determine the amount and value of
68	68	goods-in-transit and that the location in this state where the
69	69	goods-in-transit were detained for storage [assembling, storing,
70	70	manufacturing, processing, or fabricating purposes] was not owned
71	71	by or under the control of the owner of the goods-in-transit. If
72	72	the property owner fails to deliver the information requested in
73	73	the notice before the 31st day after the date the notice is
74	74	delivered to the property owner, the property owner forfeits the
75	75	right to claim or receive the exemption for that year.
76	76	(j-1) Notwithstanding Subsection (j) or official action
77	77	that was taken under that subsection before September 1, 2009, to
78	78	tax goods-in-transit exempt under Subsection (b) and not exempt
79	79	under other law, a taxing unit may not tax such goods-in-transit in
80	80	a tax year that begins on or after January 1, 2010, unless the
81	81	governing body of the taxing unit takes action on or after September
82	82	1, 2009, in the manner required for official action by the governing
83	83	body, to provide for the taxation of the goods-in-transit. The
84	84	official action to tax the goods-in-transit must be taken before
85	85	January 1 of the first tax year in which the governing body proposes
86	86	to tax goods-in-transit. Before acting to tax the exempt property,
87	87	the governing body of the taxing unit must conduct a public hearing
88	88	as required by Section 1-n(d), Article VIII, Texas Constitution.
89	89	If the governing body of a taxing unit provides for the taxation of
90	90	the goods-in-transit as provided by this subsection, the exemption
91	91	prescribed by Subsection (b) does not apply to that unit. The
92	92	goods-in-transit remain subject to taxation by the taxing unit
93	93	until the governing body of the taxing unit, in the manner required
94	94	for official action, rescinds or repeals its previous action to tax
95	95	goods-in-transit, or otherwise determines that the exemption
96	96	prescribed by Subsection (b) will apply to that taxing unit.
97	97	(j-2) Notwithstanding Subsection (j-1), if under Subsection
98	98	(j) the governing body of a taxing unit, before September 1, 2009,
99	99	took action to provide for the taxation of goods-in-transit and
100	100	pledged the taxes imposed on the goods-in-transit for the payment
101	101	of a debt of the taxing unit, the tax officials of the taxing unit
102	102	may continue to impose the taxes against the goods-in-transit until
103	103	the debt is discharged, if cessation of the imposition would impair
104	104	the obligation of the contract by which the debt was created.
105	105	SECTION 3. Section 11.253(a)(2), Tax Code, as amended by
106	106	this Act, applies only to an ad valorem tax year that begins on or
107	107	after January 1, 2010.
108	108	SECTION 4. (a) Except as provided by Subsection (b) of this
109	109	section, this Act takes effect January 1, 2010.
110	110	(b) Section 2 of this Act takes effect September 1, 2009.