| 1 | 1 | | 83R17646 CJC-D |
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| 2 | 2 | | By: Menendez H.B. No. 2387 |
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| 3 | 3 | | Substitute the following for H.B. No. 2387: |
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| 4 | 4 | | By: Frank C.S.H.B. No. 2387 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the ad valorem taxation of certain tangible personal |
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| 10 | 10 | | property located inside a defense base development authority. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 379B.011, Local Government Code, is |
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| 13 | 13 | | amended by adding Subsections (c) and (d) to read as follows: |
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| 14 | 14 | | (c) A commercial product that is in the process of being |
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| 15 | 15 | | manufactured, assembled, or produced inside the authority is |
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| 16 | 16 | | presumed to be in interstate, international, or foreign commerce |
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| 17 | 17 | | and not located in this state for longer than a temporary period for |
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| 18 | 18 | | purposes of Sections 11.01 and 21.02, Tax Code, if: |
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| 19 | 19 | | (1) the entity manufacturing, assembling, or |
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| 20 | 20 | | producing the product is engaged in a business activity described |
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| 21 | 21 | | by sectors 31 through 33 of the 2012 North American Industry |
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| 22 | 22 | | Classification System (NAICS); and |
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| 23 | 23 | | (2) the product is eligible under guidelines and |
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| 24 | 24 | | criteria established by the commissioners court of the county in |
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| 25 | 25 | | which the authority is located under Section 312.002, Tax Code. |
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| 26 | 26 | | (d) Tangible personal property located inside the authority |
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| 27 | 27 | | is presumed to be in interstate, international, or foreign commerce |
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| 28 | 28 | | and not located in this state for longer than a temporary period for |
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| 29 | 29 | | purposes of Sections 11.01 and 21.02, Tax Code, if the owner |
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| 30 | 30 | | demonstrates to the chief appraiser for the appraisal district in |
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| 31 | 31 | | which the authority is located that the owner intends to |
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| 32 | 32 | | incorporate the property into or attach the property to a |
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| 33 | 33 | | commercial product described by Subsection (c). |
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| 34 | 34 | | SECTION 2. The change in law made by this Act applies only |
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| 35 | 35 | | to ad valorem taxes imposed for a tax year beginning on or after the |
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| 36 | 36 | | effective date of this Act. |
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| 37 | 37 | | SECTION 3. This Act takes effect January 1, 2014. |
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