Texas Senate Bill SB947

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/14/09
• Voted on by Senate: 4/21/09
• Out of House Committee: 5/18/09

Caption

Relating to the exemption from ad valorem taxation of certain tangible personal property stored temporarily at a location in this state.

Impact

The introduction of SB947 seeks to impact state laws significantly by providing clearer guidelines on what constitutes goods-in-transit and thus what is eligible for tax exemption. By specifying the actions required for public warehouse operators and defining the scope of who can claim the exemption, the bill attempts to standardize the treatment of tangible personal property across various taxing units in Texas. Notably, the bill asserts that local governments cannot tax goods-in-transit unless they follow specific actions set out in the proposal, which could influence local revenue streams and individual businesses' tax obligations.

Summary

SB947 is a legislative proposal aiming to amend the Tax Code concerning the exemption from ad valorem taxation of certain tangible personal property stored temporarily in Texas. The bill specifically focuses on the definition of 'goods-in-transit,' which refers to tangible personal property that is acquired in or imported into Texas and is shipped to another location within or outside the state. This legislative measure seeks to clarify the conditions under which goods can be exempted from property tax based on their temporary storage, ensuring that they are held for less than 175 days and stored at facilities not owned or controlled by the owner of the goods.

Conclusion

Overall, SB947 represents a significant shift in Texas taxation policy, with both potential benefits to businesses involved in the transit and storage of goods and notable complications for local authorities. The legislative discussion around the bill will likely focus on balancing the interests of economic development with the need for adequate local funding and services.

Contention

Debates surrounding SB947 may be expected to reveal points of contention regarding state versus local control over taxation. Critics might argue that the bill effectively diminishes the ability of local governments to raise revenue through property taxes, while supporters could contend that a uniform approach to taxation supports economic efficiency and encourages business activity within Texas. Additionally, the stipulations requiring governing bodies to hold public hearings before implementing tax measures on goods-in-transit may be seen as either a prudent measure for transparency or as an administrative burden that complicates tax processes.