Texas 2011 - 82nd Regular

Texas Senate Bill SB326 Compare Versions

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1	1	By: Duncan, West S.B. No. 326
2	2	(Hilderbran)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the exemption from ad valorem taxation of certain
8	8	tangible personal property stored temporarily at a location in this
9	9	state.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subsection (a), Section 11.253, Tax Code, is
12	12	amended by amending Subdivision (2) and adding Subdivisions (5) and
13	13	(6) to read as follows:
14	14	(2) "Goods-in-transit" means tangible personal
15	15	property that:
16	16	(A) is acquired in or imported into this state to
17	17	be forwarded to another location in this state or outside this
18	18	state;
19	19	(B) is stored under a contract of bailment by a
20	20	public warehouse operator [detained] at one or more public
21	21	warehouse facilities [a location] in this state that are not in any
22	22	way owned or controlled by [in which] the owner of the personal
23	23	property [does not have a direct or indirect ownership interest]
24	24	for the account of [assembling, storing, manufacturing,
25	25	processing, or fabricating purposes by] the person who acquired or
26	26	imported the property;
27	27	(C) is transported to another location in this
28	28	state or outside this state not later than 175 days after the date
29	29	the person acquired the property in or imported the property into
30	30	this state; and
31	31	(D) does not include oil, natural gas, petroleum
32	32	products, aircraft, dealer's motor vehicle inventory, dealer's
33	33	vessel and outboard motor inventory, dealer's heavy equipment
34	34	inventory, or retail manufactured housing inventory.
35	35	(5) "Bailee" and "warehouse" have the meanings
36	36	assigned by Section 7.102, Business & Commerce Code.
37	37	(6) "Public warehouse operator" means a person that:
38	38	(A) is both a bailee and a warehouse; and
39	39	(B) stores under a contract of bailment, at one
40	40	or more public warehouse facilities, tangible personal property
41	41	that is owned by other persons solely for the account of those
42	42	persons and not for the operator's account.
43	43	SECTION 2. Section 11.253, Tax Code, is amended by amending
44	44	Subsections (e) and (h) and adding Subsections (j-1) and (j-2) to
45	45	read as follows:
46	46	(e) In determining the market value of goods-in-transit
47	47	that in the preceding year were [assembled,] stored[, manufactured,
48	48	processed, or fabricated] in this state, the chief appraiser shall
49	49	exclude the cost of equipment, machinery, or materials that entered
50	50	into and became component parts of the goods-in-transit but were
51	51	not themselves goods-in-transit or that were not transported to
52	52	another location in this state or outside this state before the
53	53	expiration of 175 days after the date they were brought into this
54	54	state by the property owner or acquired by the property owner in
55	55	this state. For component parts held in bulk, the chief appraiser
56	56	may use the average length of time a component part was held by the
57	57	owner of the component parts during the preceding year at a location
58	58	in this state that was not owned by or under the control of the owner
59	59	of the component parts in determining whether the component parts
60	60	were transported to another location in this state or outside this
61	61	state before the expiration of 175 days.
62	62	(h) The chief appraiser by written notice delivered to a
63	63	property owner who claims an exemption under this section may
64	64	require the property owner to provide copies of property records so
65	65	the chief appraiser can determine the amount and value of
66	66	goods-in-transit and that the location in this state where the
67	67	goods-in-transit were detained for storage [assembling, storing,
68	68	manufacturing, processing, or fabricating purposes] was not owned
69	69	by or under the control of the owner of the goods-in-transit. If
70	70	the property owner fails to deliver the information requested in
71	71	the notice before the 31st day after the date the notice is
72	72	delivered to the property owner, the property owner forfeits the
73	73	right to claim or receive the exemption for that year.
74	74	(j-1) Notwithstanding Subsection (j) or official action
75	75	that was taken under that subsection before September 1, 2011, to
76	76	tax goods-in-transit exempt under Subsection (b) and not exempt
77	77	under other law, a taxing unit may not tax such goods-in-transit in
78	78	a tax year that begins on or after January 1, 2012, unless the
79	79	governing body of the taxing unit takes action on or after September
80	80	1, 2011, in the manner required for official action by the governing
81	81	body, to provide for the taxation of the goods-in-transit. The
82	82	official action to tax the goods-in-transit must be taken before
83	83	January 1 of the first tax year in which the governing body proposes
84	84	to tax goods-in-transit. Before acting to tax the exempt property,
85	85	the governing body of the taxing unit must conduct a public hearing
86	86	as required by Section 1-n(d), Article VIII, Texas Constitution.
87	87	If the governing body of a taxing unit provides for the taxation of
88	88	the goods-in-transit as provided by this subsection, the exemption
89	89	prescribed by Subsection (b) does not apply to that unit. The
90	90	goods-in-transit remain subject to taxation by the taxing unit
91	91	until the governing body of the taxing unit, in the manner required
92	92	for official action, rescinds or repeals its previous action to tax
93	93	goods-in-transit or otherwise determines that the exemption
94	94	prescribed by Subsection (b) will apply to that taxing unit.
95	95	(j-2) Notwithstanding Subsection (j-1), if under Subsection
96	96	(j) the governing body of a taxing unit, before September 1, 2011,
97	97	took action to provide for the taxation of goods-in-transit and
98	98	pledged the taxes imposed on the goods-in-transit for the payment
99	99	of a debt of the taxing unit, the tax officials of the taxing unit
100	100	may continue to impose the taxes against the goods-in-transit until
101	101	the debt is discharged, if cessation of the imposition would impair
102	102	the obligation of the contract by which the debt was created.
103	103	SECTION 3. Subdivision (2), Subsection (a), Section 11.253,
104	104	Tax Code, as amended by this Act, applies only to an ad valorem tax
105	105	year that begins on or after January 1, 2012.
106	106	SECTION 4. (a) Except as provided by Subsection (b) of
107	107	this section, this Act takes effect January 1, 2012.
108	108	(b) Section 2 of this Act takes effect September 1, 2011.