LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION March 1, 2015 TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB516 by Bettencourt (Relating to increasing the period of time for exempting freeport goods from ad valorem taxation.), As Introduced The fiscal impact of extending the number of days that qualifying personal property may remain in this state before losing eligibility for a property tax exemption from 175 to 365 is discussed in the fiscal note for the enabling resolution, SJR 29. The bill would amend Section 11.251 of the Tax Code, regarding taxable property and exemptions, to extend the number of days that qualifying personal property may remain in this state before losing eligibility for a property tax exemption from 175 to 365. This exemption is commonly referred to as a "freeport exemption." Many taxing units took action to tax this personal property under previous constitutional authority to do so, and the exemption does not apply in those districts. The companion constitutional amendment (SJR 29) that extends the number of days qualifying personal property may remain in this state (currently 175 days) before losing eligibility for a freeport property tax exemption is self-implementing. Consequently, the fiscal impact is shown in the fiscal note for SJR 29. The bill would take effect on January 1, 2016, contingent on a constitutional amendment. Local Government Impact The fiscal impact to units of local government of extending the number of days that qualifying personal property may remain in this state before losing eligibility for a property tax exemption from 175 to 365 is discussed in the fiscal note for the enabling resolution, SJR 29. Source Agencies:304 Comptroller of Public Accounts LBB Staff: UP, KK, SD, SJS
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
March 1, 2015
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB516 by Bettencourt (Relating to increasing the period of time for exempting freeport goods from ad valorem taxation.), As Introduced
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB516 by Bettencourt (Relating to increasing the period of time for exempting freeport goods from ad valorem taxation.), As Introduced
Honorable Jane Nelson, Chair, Senate Committee on Finance
Honorable Jane Nelson, Chair, Senate Committee on Finance
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB516 by Bettencourt (Relating to increasing the period of time for exempting freeport goods from ad valorem taxation.), As Introduced
SB516 by Bettencourt (Relating to increasing the period of time for exempting freeport goods from ad valorem taxation.), As Introduced
The fiscal impact of extending the number of days that qualifying personal property may remain in this state before losing eligibility for a property tax exemption from 175 to 365 is discussed in the fiscal note for the enabling resolution, SJR 29.
The fiscal impact of extending the number of days that qualifying personal property may remain in this state before losing eligibility for a property tax exemption from 175 to 365 is discussed in the fiscal note for the enabling resolution, SJR 29.
The bill would amend Section 11.251 of the Tax Code, regarding taxable property and exemptions, to extend the number of days that qualifying personal property may remain in this state before losing eligibility for a property tax exemption from 175 to 365. This exemption is commonly referred to as a "freeport exemption." Many taxing units took action to tax this personal property under previous constitutional authority to do so, and the exemption does not apply in those districts. The companion constitutional amendment (SJR 29) that extends the number of days qualifying personal property may remain in this state (currently 175 days) before losing eligibility for a freeport property tax exemption is self-implementing. Consequently, the fiscal impact is shown in the fiscal note for SJR 29. The bill would take effect on January 1, 2016, contingent on a constitutional amendment.
Local Government Impact
The fiscal impact to units of local government of extending the number of days that qualifying personal property may remain in this state before losing eligibility for a property tax exemption from 175 to 365 is discussed in the fiscal note for the enabling resolution, SJR 29.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD, SJS
UP, KK, SD, SJS