Texas Senate Bill SB770

Texas 2009 - 81st Regular

Caption

Relating to the procedure for claiming an exemption from ad valorem taxation for tangible personal property in transit.

Impact

The bill specifically alters Section 11.43 of the Texas Tax Code, establishing that once an exemption is granted for tangible personal property in transit, it does not need to be reapplied for in subsequent years barring any change in ownership or qualification. This approach aims to provide ongoing benefits to businesses that routinely handle property in transit, ideally encouraging economic activity and investment by reducing the complexities associated with annual tax claims.

Summary

SB770 aims to streamline the procedure for claiming exemptions from ad valorem taxation on tangible personal property that is in transit. This bill modifies existing provisions in the Texas Tax Code to clarify and simplify the application process for these exemptions. By providing clearer guidelines on how exemptions can be claimed, the bill seeks to reduce administrative burdens on businesses and ensure that tax relief measures for property in transit are more accessible.

Contention

While the prospect of easing the tax burden for businesses is largely supported, potential points of contention may arise regarding the effectiveness of enforcement and compliance. Critics could argue that such exemptions might lead to complications in accurately tracking property, affecting local tax revenues if not monitored appropriately. Additionally, stakeholders concerned about tax equity may voice that exemptions for certain businesses could unduly benefit larger corporations while disadvantaging smaller entities that may lack the capacity to navigate the exemption process as effectively.