Texas Senate Bill SB758

Texas 2015 - 84th Regular

Caption

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.

Impact

The potential impact of SB758 on state laws is significant, especially regarding taxation policies related to manufacturing entities. Should this bill pass and the necessary constitutional amendment be approved by voters, manufacturers would benefit from reduced operating costs related to taxation on equipment and materials. This could spur economic activity within the manufacturing sector in Texas, potentially attracting more businesses to the state and encouraging existing manufacturers to expand their operations.

Summary

Senate Bill 758 aims to provide an exemption from ad valorem taxation for certain tangible personal property utilized by owners in the manufacturing, processing, or fabricating of goods for sale. This legislation specifically targets property that is already exempt from sales and use tax under Texas law, thereby extending financial relief to manufacturers by reducing the overall tax burden on their business operations. The bill proposes an amendment to the Texas Tax Code by introducing new provisions which outline the eligibility criteria for this exemption.

Contention

Despite its intended benefits, SB758 may encounter points of contention regarding its implementation and overall fairness in the tax system. Critics might argue that such exemptions could disproportionately favor larger manufacturing firms over smaller businesses, leading to concerns about equity in taxation. Furthermore, there could be apprehensions regarding the long-term revenue implications for local governments that rely on ad valorem taxes to fund essential services. The legislation's success will likely depend on the resolution of these concerns and the measures taken to ensure a balanced approach to tax exemptions.