Texas 2013 - 83rd Regular

Texas House Bill HB3121 Compare Versions

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1	1	By: Harper-Brown, Ratliff, Hilderbran H.B. No. 3121
2	2	(Senate Sponsor - Deuell)
3	3	(In the Senate - Received from the House May 8, 2013;
4	4	May 9, 2013, read first time and referred to Committee on Finance;
5	5	May 15, 2013, reported favorably by the following vote:
6	6	Yeas 14, Nays 0; May 15, 2013, sent to printer.)
7	7
8	8
9	9	A BILL TO BE ENTITLED
10	10	AN ACT
11	11	relating to the qualifications for the exemption from ad valorem
12	12	taxation for aircraft parts located in this state for a limited
13	13	time.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 11.251, Tax Code, is amended by amending
16	16	Subsections (b), (c), (e), (g), and (k) and adding Subsection (l) to
17	17	read as follows:
18	18	(b) A person is entitled to an exemption from taxation by a
19	19	taxing unit of the appraised value of that portion of the person's
20	20	inventory or property consisting of freeport goods as determined
21	21	under this section for the taxing unit.
22	22	(c) The exemption provided by Subsection (b) is subtracted
23	23	from the market value of the inventory or property determined under
24	24	Section 23.12 to determine the taxable value of the inventory or
25	25	property for the taxing unit.
26	26	(e) In determining the market value of freeport goods that
27	27	in the preceding year were assembled, manufactured, repaired,
28	28	maintained, processed, or fabricated in this state or used by the
29	29	person who acquired or imported the property in the repair or
30	30	maintenance of aircraft operated by a certificated air carrier, the
31	31	chief appraiser shall exclude the cost of equipment, machinery, or
32	32	materials that entered into and became component parts of the
33	33	freeport goods but were not themselves freeport goods or that were
34	34	not transported outside the state before the expiration of 175
35	35	days, or, if applicable, the greater number of days adopted by the
36	36	taxing unit as authorized by Subsection (l), after they were
37	37	brought into this state by the property owner or acquired by the
38	38	property owner in this state. For component parts held in bulk, the
39	39	chief appraiser may use the average length of time a component part
40	40	was held in this state by the property owner during the preceding
41	41	year in determining whether the component parts were transported
42	42	out of this state before the expiration of 175 days or, if
43	43	applicable, the greater number of days adopted by the taxing unit as
44	44	authorized by Subsection (l).
45	45	(g) If the property owner or the chief appraiser
46	46	demonstrates that the method provided by Subsection (d)
47	47	significantly understates or overstates the market value of the
48	48	property qualified for an exemption under Subsection (b) in the
49	49	current year, the chief appraiser shall determine the market value
50	50	of the freeport goods to be exempt by determining, according to the
51	51	property owner's records and any other available information, the
52	52	market value of those freeport goods owned by the property owner on
53	53	January 1 of the current year, excluding the cost of equipment,
54	54	machinery, or materials that entered into and became component
55	55	parts of the freeport goods but were not themselves freeport goods
56	56	or that were not transported outside the state before the
57	57	expiration of 175 days, or, if applicable, the greater number of
58	58	days adopted by the taxing unit as authorized by Subsection (l),
59	59	after they were brought into this state by the property owner or
60	60	acquired by the property owner in this state.
61	61	(k) Property that meets the requirements of Article VIII,
62	62	Sections 1-j(a)(1) and (2), of the Texas Constitution and that is
63	63	transported outside of this state not later than 175 days, or, if
64	64	applicable, the greater number of days adopted by the taxing unit as
65	65	authorized by Subsection (l), after the date the person who owns it
66	66	on January 1 acquired it or imported it into this state is freeport
67	67	goods regardless of whether the person who owns it on January 1 is
68	68	the person who transports it outside of this state.
69	69	(l) The governing body of a taxing unit, in the manner
70	70	provided by law for official action, may extend the date by which
71	71	freeport goods that are aircraft parts must be transported outside
72	72	the state to a date not later than the 730th day after the date the
73	73	person acquired or imported the property in this state. An
74	74	extension adopted by official action under this subsection applies
75	75	only to the exemption from ad valorem taxation by the taxing unit
76	76	adopting the extension and applies to:
77	77	(1) the tax year:
78	78	(A) in which the extension is adopted if
79	79	officially adopted before June 1 of a tax year; or
80	80	(B) immediately following the tax year in which
81	81	the extension is adopted if officially adopted on or after June 1 of
82	82	a tax year; and
83	83	(2) each tax year following the year of adoption of the
84	84	extension.
85	85	SECTION 2. This Act applies only to a tax year beginning on
86	86	or after the effective date of this Act.
87	87	SECTION 3. This Act takes effect January 1, 2014, but only
88	88	if the constitutional amendment proposed by the 83rd Legislature,
89	89	Regular Session, 2013, to authorize a political subdivision of this
90	90	state to extend the number of days that aircraft parts that are
91	91	exempt from ad valorem taxation due to their location in this state
92	92	for a temporary period may be located in this state for purposes of
93	93	qualifying for the tax exemption is approved by the voters. If that
94	94	amendment is not approved by the voters, this Act has no effect.
95	95	* * * * *