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