Relating to the definition of tangible personal property.
Impact
The potential impact of HB3411 on state laws includes more precise tax classifications, which can facilitate better administration of tax laws and help businesses understand their tax obligations more clearly. By establishing a clearer definition, the bill may help prevent misunderstandings and disputes regarding taxable items, thereby fostering smoother financial operations for businesses involved in such transactions.
Summary
House Bill 3411 aims to clarify the definition of tangible personal property within the Texas Tax Code. The bill specifies that tangible personal property includes items that can be perceived through the senses such as sight and touch, along with explicitly including computer programs and prepaid calling cards in this definition. Such clarification is significant for the administration of taxes and compliance for businesses that handle various forms of personal property.
Sentiment
General sentiment around the bill appears to be supportive among lawmakers who see the need for clear definitions in tax legislation to avoid ambiguities. However, as with most tax-related legislation, there may be concerns about the implications for revenue collection and the administration of the tax code, which could attract scrutiny from certain advocacy groups interested in tax fairness and equity.
Contention
While specifics of contention were not detailed in the available discussion snippets, typical issues could arise regarding potential overreach in taxation or the expansion of tax definitions that may affect how businesses categorize their products. Various stakeholders, including tech companies or telecommunications services affected by the inclusion of computer programs and prepaid calling cards, could raise concerns regarding their implications for taxation.
Relating to an exemption from ad valorem taxation of tangible personal property consisting of animal feed held by the owner of the property for sale at retail.