| 1 | 1 | | 84R6087 TJB-D |
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| 2 | 2 | | By: Elkins H.B. No. 3826 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the exemption from ad valorem taxation of certain |
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| 8 | 8 | | tangible personal property used by the owner of the property to |
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| 9 | 9 | | manufacture, process, or fabricate tangible personal property for |
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| 10 | 10 | | ultimate sale. |
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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. Subchapter B, Chapter 11, Tax Code, is amended by |
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| 13 | 13 | | adding Section 11.36 to read as follows: |
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| 14 | 14 | | Sec. 11.36. PROPERTY USED IN MANUFACTURING. The owner of |
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| 15 | 15 | | tangible personal property that is exempted from the sales and use |
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| 16 | 16 | | tax under Section 151.318 is entitled to an exemption from ad |
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| 17 | 17 | | valorem taxation of the appraised value of the property if the |
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| 18 | 18 | | property is used by the owner to manufacture, process, or fabricate |
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| 19 | 19 | | tangible personal property for ultimate sale. |
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| 20 | 20 | | SECTION 2. Section 11.43, Tax Code, is amended by adding |
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| 21 | 21 | | Subsection (q) to read as follows: |
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| 22 | 22 | | (q) The application form for an exemption authorized by |
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| 23 | 23 | | Section 11.36 must require an applicant to submit with the |
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| 24 | 24 | | application: |
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| 25 | 25 | | (1) a copy of the issued exemption certificate |
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| 26 | 26 | | claiming the exemption under Section 151.318 of the property |
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| 27 | 27 | | described in the application; or |
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| 28 | 28 | | (2) if the applicant is unable to obtain a copy of the |
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| 29 | 29 | | exemption certificate described by Subdivision (1), a statement |
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| 30 | 30 | | that the property described in the application is exempted from the |
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| 31 | 31 | | sales and use tax under Section 151.318. |
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| 32 | 32 | | SECTION 3. This Act applies only to an ad valorem tax year |
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| 33 | 33 | | that begins on or after the effective date of this Act. |
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| 34 | 34 | | SECTION 4. This Act takes effect January 1, 2016, but only |
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| 35 | 35 | | if the constitutional amendment proposed by the 84th Legislature, |
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| 36 | 36 | | Regular Session, 2015, authorizing the legislature to exempt from |
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| 37 | 37 | | ad valorem taxation by one or more political subdivisions tangible |
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| 38 | 38 | | personal property used by the owner of the property to manufacture, |
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| 39 | 39 | | process, or fabricate tangible personal property for ultimate sale |
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| 40 | 40 | | is approved by the voters. If that amendment is not approved by the |
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| 41 | 41 | | voters, this Act has no effect. |
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