| 1 | 1 | | 81R2604 JD-D |
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| 2 | 2 | | By: Estes S.B. No. 949 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the ad valorem tax situs of certain portable drilling |
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| 8 | 8 | | rigs and associated equipment. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 21.02(a), Tax Code, is amended to read as |
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| 11 | 11 | | follows: |
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| 12 | 12 | | (a) Except as provided by Subsection [Subsections] (b) [and |
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| 13 | 13 | | (e)] and by Sections 21.021, 21.022, 21.04, and 21.05, tangible |
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| 14 | 14 | | personal property is taxable by a taxing unit if: |
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| 15 | 15 | | (1) it is located in the unit on January 1 for more |
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| 16 | 16 | | than a temporary period; |
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| 17 | 17 | | (2) it normally is located in the unit, even though it |
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| 18 | 18 | | is outside the unit on January 1, if it is outside the unit only |
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| 19 | 19 | | temporarily; |
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| 20 | 20 | | (3) it normally is returned to the unit between uses |
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| 21 | 21 | | elsewhere and is not located in any one place for more than a |
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| 22 | 22 | | temporary period; or |
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| 23 | 23 | | (4) the owner resides (for property not used for |
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| 24 | 24 | | business purposes) or maintains the owner's principal place of |
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| 25 | 25 | | business in this state (for property used for business purposes) in |
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| 26 | 26 | | the unit and the property is taxable in this state but does not have |
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| 27 | 27 | | a taxable situs pursuant to Subdivisions (1) through (3) [of this |
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| 28 | 28 | | subsection]. |
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| 29 | 29 | | SECTION 2. Chapter 21, Tax Code, is amended by adding |
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| 30 | 30 | | Section 21.022 to read as follows: |
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| 31 | 31 | | Sec. 21.022. PORTABLE DRILLING RIGS. (a) In this section, |
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| 32 | 32 | | "portable drilling rig" includes equipment associated with the |
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| 33 | 33 | | drilling rig. |
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| 34 | 34 | | (b) Except as provided by Subsection (c), a portable |
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| 35 | 35 | | drilling rig designed for land-based oil or gas drilling or |
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| 36 | 36 | | exploration operations is taxable by each taxing unit in which the |
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| 37 | 37 | | rig is located on January 1. |
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| 38 | 38 | | (c) If a portable drilling rig is in transport on January 1, |
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| 39 | 39 | | the portable drilling rig has taxable situs at the location where |
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| 40 | 40 | | the drilling rig was loaded for transport. |
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| 41 | 41 | | (d) The comptroller shall adopt rules and forms to implement |
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| 42 | 42 | | and administer this section. |
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| 43 | 43 | | SECTION 3. Section 21.02(e), Tax Code, is repealed. |
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| 44 | 44 | | SECTION 4. This Act applies only to a tax year that begins |
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| 45 | 45 | | on or after the effective date of this Act. |
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| 46 | 46 | | SECTION 5. This Act takes effect January 1, 2010. |
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