| 1 | 1 | | By: Elkins H.B. No. 3861 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the exemption from ad valorem taxation of certain |
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| 7 | 7 | | income-producing tangible personal property. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 22.01, Tax Code, is amended by amending |
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| 10 | 10 | | Subsection (f) and adding Subsection (f-1) to read as follows: |
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| 11 | 11 | | (f) Notwithstanding Subsections (a) and (b), a rendition |
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| 12 | 12 | | statement of a person who owns tangible personal property used for |
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| 13 | 13 | | the production of income located in the appraisal district that, in |
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| 14 | 14 | | the owner's opinion, has an aggregate value of less than $50,000 |
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| 15 | 15 | | [$20,000] is required to contain only: |
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| 16 | 16 | | (1) the name and address of the property owner; |
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| 17 | 17 | | (2) a general description of the property by type or |
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| 18 | 18 | | category; and |
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| 19 | 19 | | (3) the physical location or taxable situs of the |
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| 20 | 20 | | property. |
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| 21 | 21 | | (f-1) A person who owns tangible personal property used for |
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| 22 | 22 | | the production of income located in the appraisal district that, in |
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| 23 | 23 | | the owner's opinion, has an aggregate value of at least $50,000 must |
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| 24 | 24 | | render the property under Subsection (a), but any amount less than |
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| 25 | 25 | | $50,000 of that value is exempt from taxation under this title. The |
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| 26 | 26 | | exemption may not be transferred to another person. |
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| 27 | 27 | | SECTION 2. Section 22.07, Tax Code, is amended by amending |
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| 28 | 28 | | Subsections (c) and (f) and adding Subsection (g) to read as |
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| 29 | 29 | | follows: |
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| 30 | 30 | | (c) The chief appraiser may request, either in writing or by |
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| 31 | 31 | | electronic means, that the property owner provide a statement |
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| 32 | 32 | | containing supporting information indicating how the value |
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| 33 | 33 | | rendered under Section 22.01(a)(5) or claimed to be exempt under |
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| 34 | 34 | | Section 22.01(f) was determined. The statement must: |
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| 35 | 35 | | (1) summarize information sufficient to identify the |
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| 36 | 36 | | property, including: |
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| 37 | 37 | | (A) the physical and economic characteristics |
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| 38 | 38 | | relevant to the opinion of value, if appropriate; and |
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| 39 | 39 | | (B) the source of the information used; |
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| 40 | 40 | | (2) state the effective date of the opinion of value; |
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| 41 | 41 | | and |
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| 42 | 42 | | (3) explain the basis of the value rendered or claimed |
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| 43 | 43 | | exempt. If the property owner is a business with 50 employees or |
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| 44 | 44 | | less, the property owner may base the estimate of value on the |
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| 45 | 45 | | depreciation schedules used for federal income tax purposes. |
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| 46 | 46 | | (f) Except as provided by Subsection (g), failure [Failure] |
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| 47 | 47 | | to comply with this section in a timely manner is considered to be a |
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| 48 | 48 | | failure to timely render under Section 22.01 and penalties as |
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| 49 | 49 | | described in Section 22.28 shall be applied by the chief appraiser. |
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| 50 | 50 | | (g) Failure to provide in a timely manner a statement |
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| 51 | 51 | | requested under Subsection (c) indicating how the value claimed to |
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| 52 | 52 | | be exempt under Section 22.01(f) was determined is a violation of |
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| 53 | 53 | | Section 22.01 and the chief appraiser shall apply a penalty in an |
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| 54 | 54 | | amount equal to 10 percent of the total amount of taxes that would |
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| 55 | 55 | | have been imposed on the property for that year by taxing units |
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| 56 | 56 | | participating in the appraisal district but for the exemption under |
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| 57 | 57 | | Section 22.01(f). |
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| 58 | 58 | | SECTION 3. This Act applies beginning with the tax year that |
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| 59 | 59 | | begins January 1, 2016. |
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| 60 | 60 | | SECTION 4. This Act takes effect on the date on which the |
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| 61 | 61 | | constitutional amendment proposed by the 84th Legislature, Regular |
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| 62 | 62 | | Session, 2015, authorizing the legislature to exempt from ad |
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| 63 | 63 | | valorem taxation income-producing tangible personal property |
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| 64 | 64 | | valued at less than $50,000 takes effect, if that constitutional |
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| 65 | 65 | | amendment is approved by the voters. If that constitutional |
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| 66 | 66 | | amendment is not approved by the voters, this Act has no effect. |
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