84R6087 TJB-D
By: Elkins H.B. No. 3826
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of certain
tangible personal property used by the owner of the property to
manufacture, process, or fabricate tangible personal property for
ultimate sale.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.36 to read as follows:
Sec. 11.36. PROPERTY USED IN MANUFACTURING. The owner of
tangible personal property that is exempted from the sales and use
tax under Section 151.318 is entitled to an exemption from ad
valorem taxation of the appraised value of the property if the
property is used by the owner to manufacture, process, or fabricate
tangible personal property for ultimate sale.
SECTION 2. Section 11.43, Tax Code, is amended by adding
Subsection (q) to read as follows:
(q) The application form for an exemption authorized by
Section 11.36 must require an applicant to submit with the
application:
(1) a copy of the issued exemption certificate
claiming the exemption under Section 151.318 of the property
described in the application; or
(2) if the applicant is unable to obtain a copy of the
exemption certificate described by Subdivision (1), a statement
that the property described in the application is exempted from the
sales and use tax under Section 151.318.
SECTION 3. This Act applies only to an ad valorem tax year
that begins on or after the effective date of this Act.
SECTION 4. This Act takes effect January 1, 2016, but only
if the constitutional amendment proposed by the 84th Legislature,
Regular Session, 2015, authorizing the legislature to exempt from
ad valorem taxation by one or more political subdivisions tangible
personal property used by the owner of the property to manufacture,
process, or fabricate tangible personal property for ultimate sale
is approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.