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 Section 21.02(e), Tax Code, is repealed.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