Texas House Bill HB2043

Texas 2011 - 82nd Regular

• Out of House Committee: 4/27/11
• Introduced: 3/2/11
• Refer: 3/7/11
• Report Pass: 4/14/11

Caption

Relating to the taxation of certain tangible personal property located inside a defense base development authority.

Impact

This new legislation will have direct implications for how the appraisal districts handle taxation for property within defense base development authorities. It establishes a clear presumption that certain properties, including commercial aircraft, are not permanently located in Texas if used as intended under the bill. Consequently, property owners may benefit from reduced tax liabilities if they can demonstrate to the chief appraiser their compliance with these expectations.

Summary

House Bill 2043 aims to revise the taxation framework for certain tangible personal property situated within a defense base development authority in Texas. The bill specifies new tax regulations that alter how commercial aircraft under construction are treated concerning their taxable status. Under this bill, such aircraft are presumed to engage in interstate, international, or foreign commerce and thus may not be subject to local ad valorem taxes for extended periods, as long as specific conditions are met regarding their intended use.

Contention

While the bill seeks to provide tax relief and regulatory clarity for aerospace enterprises, there may be potential concerns among local governments regarding the loss of tax revenue that would otherwise be collected on these properties. The ability for property owners to claim their aircraft as being under temporary status may invoke scrutiny and require careful evaluation by local appraisal authorities to ensure that the tax code is not being manipulated for unfair advantages.