84R7341 TJB-D
By: Bettencourt S.B. No. 1693
A BILL TO BE ENTITLED
AN ACT
relating to the exemption of certain inventory from ad valorem
taxation by a school district.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended
by adding Section 11.35 to read as follows:
Sec. 11.35. INVENTORY. (a) In this section, "inventory"
means:
(1) a finished good held for sale or resale; or
(2) a raw or finished material held to be incorporated
into or attached to tangible personal property to create a finished
good.
(b) A person is entitled to an exemption from taxation by a
school district of the appraised value of the person's inventory.
SECTION 2. This Act applies only to an ad valorem tax year
that begins on or after the effective date of this Act.
SECTION 3. 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 of this
state a person's inventory is approved by the voters. If that
amendment is not approved by the voters, this Act has no effect.