85R2435 TJB-D
By: Button H.B. No. 425
A BILL TO BE ENTITLED
AN ACT
relating to the exemption of inventory of certain retail businesses
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. RETAIL INVENTORY. (a) A person is entitled to
an exemption from taxation by a school district of the appraised
value of the person's inventory held for sale at retail.
(b) 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 exempt from
ad valorem taxation by one or more political subdivisions of this
state 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.