| 1 | 1 | | 85R9454 TJB-D |
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| 2 | 2 | | By: Button H.B. No. 2973 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the authority of the commissioners court of a county to |
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| 8 | 8 | | exempt the inventory of certain retail businesses from ad valorem |
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| 9 | 9 | | taxation by the county. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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| 12 | 12 | | adding Section 11.37 to read as follows: |
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| 13 | 13 | | Sec. 11.37. RETAIL INVENTORY. (a) A person is entitled to |
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| 14 | 14 | | an exemption from taxation by a county of the appraised value of the |
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| 15 | 15 | | person's inventory held for sale at retail if the exemption is |
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| 16 | 16 | | adopted by the commissioners court of the county in the manner |
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| 17 | 17 | | provided by law for official action by the commissioners court. |
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| 18 | 18 | | (b) The exemption provided by Subsection (a) and adopted by |
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| 19 | 19 | | a commissioners court applies to: |
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| 20 | 20 | | (1) the tax year: |
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| 21 | 21 | | (A) in which the exemption is adopted by the |
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| 22 | 22 | | commissioners court if officially adopted before April 15; or |
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| 23 | 23 | | (B) immediately following the tax year in which |
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| 24 | 24 | | the exemption is adopted by the commissioners court if officially |
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| 25 | 25 | | adopted on or after April 15; and |
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| 26 | 26 | | (2) the four tax years following that tax year. |
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| 27 | 27 | | (c) The exemption provided by Subsection (a) does not apply |
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| 28 | 28 | | to: |
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| 29 | 29 | | (1) real property; |
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| 30 | 30 | | (2) a dealer's motor vehicle inventory, as defined by |
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| 31 | 31 | | Section 23.121; |
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| 32 | 32 | | (3) a dealer's heavy equipment inventory, as defined |
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| 33 | 33 | | by Section 23.1241; |
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| 34 | 34 | | (4) a dealer's vessel and outboard motor inventory, as |
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| 35 | 35 | | defined by Section 23.124; or |
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| 36 | 36 | | (5) retail manufactured housing inventory, as defined |
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| 37 | 37 | | by Section 23.127. |
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| 38 | 38 | | SECTION 2. This Act applies only to ad valorem taxes imposed |
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| 39 | 39 | | for a tax year that begins on or after the effective date of this |
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| 40 | 40 | | Act. |
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| 41 | 41 | | SECTION 3. This Act takes effect January 1, 2018, but only |
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| 42 | 42 | | if the constitutional amendment proposed by the 85th Legislature, |
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| 43 | 43 | | Regular Session, 2017, authorizing the legislature to permit one or |
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| 44 | 44 | | more political subdivisions of this state to exempt from ad valorem |
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| 45 | 45 | | taxation a person's inventory held for sale at retail is approved by |
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| 46 | 46 | | the voters. If that amendment is not approved by the voters, this |
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| 47 | 47 | | Act has no effect. |
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