| 1 | 1 | | 85S10847 SMT-D |
|---|
| 2 | 2 | | By: Burkett H.B. No. 350 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to an exemption from ad valorem taxation of |
|---|
| 8 | 8 | | income-producing tangible personal property owned by certain small |
|---|
| 9 | 9 | | businesses. |
|---|
| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 11 | 11 | | SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
|---|
| 12 | 12 | | adding Section 11.143 to read as follows: |
|---|
| 13 | 13 | | Sec. 11.143. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY |
|---|
| 14 | 14 | | OWNED BY SMALL BUSINESS. A business that employs 500 or fewer |
|---|
| 15 | 15 | | employees is entitled to an exemption from taxation of the tangible |
|---|
| 16 | 16 | | personal property that is owned by the business and that is held or |
|---|
| 17 | 17 | | used by the business for the production of income. |
|---|
| 18 | 18 | | SECTION 2. Section 11.42(b), Tax Code, is amended to read as |
|---|
| 19 | 19 | | follows: |
|---|
| 20 | 20 | | (b) An exemption authorized by Section 11.11 or 11.143 is |
|---|
| 21 | 21 | | effective immediately on qualification for the exemption. |
|---|
| 22 | 22 | | SECTION 3. Section 11.43(a), Tax Code, is amended to read as |
|---|
| 23 | 23 | | follows: |
|---|
| 24 | 24 | | (a) To receive an exemption, a person claiming the |
|---|
| 25 | 25 | | exemption, other than an exemption authorized by Section 11.11, |
|---|
| 26 | 26 | | 11.12, 11.14, 11.143, 11.145, 11.146, 11.15, 11.16, 11.161, or |
|---|
| 27 | 27 | | 11.25 [of this code], must apply for the exemption. To apply for an |
|---|
| 28 | 28 | | exemption, a person must file an exemption application form with |
|---|
| 29 | 29 | | the chief appraiser for each appraisal district in which the |
|---|
| 30 | 30 | | property subject to the claimed exemption has situs. |
|---|
| 31 | 31 | | SECTION 4. Section 11.143, Tax Code, as added by this Act, |
|---|
| 32 | 32 | | applies only to a tax year beginning on or after January 1, 2018. |
|---|
| 33 | 33 | | SECTION 5. This Act takes effect January 1, 2018, but only |
|---|
| 34 | 34 | | if the constitutional amendment proposed by the 85th Legislature, |
|---|
| 35 | 35 | | 1st Called Session, 2017, authorizing the legislature to exempt |
|---|
| 36 | 36 | | from ad valorem taxation income-producing tangible personal |
|---|
| 37 | 37 | | property owned by certain small businesses is approved by the |
|---|
| 38 | 38 | | voters. If that amendment is not approved by the voters, this Act |
|---|
| 39 | 39 | | has no effect. |
|---|