By: Capriglione (Senate Sponsor - Fallon) H.B. No. 2859
(In the Senate - Received from the House May 6, 2019;
May 6, 2019, read first time and referred to Committee on Property
Tax; May 17, 2019, reported favorably by the following vote:
Yeas 5, Nays 0; May 17, 2019, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of precious
metal held in a precious metal depository located in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.141 to read as follows:
Sec. 11.141. PRECIOUS METAL HELD IN PRECIOUS METAL
DEPOSITORY. (a) For purposes of this section:
(1) "Precious metal" has the meaning assigned by
Section 2116.001, Government Code.
(2) "Precious metal depository" means a depository
that:
(A) is primarily engaged in the business of
providing precious metal storage to the general public; and
(B) maintains sufficient insurance to cover
precious metal deposited in the depository.
(b) A person is entitled to an exemption from taxation of
the precious metal that the person owns and that is held in a
precious metal depository located in this state, regardless of
whether the precious metal is held or used by the person for the
production of income.
(c) Notwithstanding Section 11.14(c), the governing body of
a taxing unit may not provide for the taxation of precious metal
exempted from taxation under Subsection (b).
SECTION 2. Section 11.42(b), Tax Code, is amended to read as
follows:
(b) An exemption authorized by Section 11.11 or 11.141 is
effective immediately on qualification for the exemption.
SECTION 3. Section 11.43(a), Tax Code, is amended to read as
follows:
(a) To receive an exemption, a person claiming the
exemption, other than an exemption authorized by Section 11.11,
11.12, 11.14, 11.141, 11.145, 11.146, 11.15, 11.16, 11.161, or
11.25 [of this code], must apply for the exemption. To apply for an
exemption, a person must file an exemption application form with
the chief appraiser for each appraisal district in which the
property subject to the claimed exemption has situs.
SECTION 4. Section 11.141, Tax Code, as added by this Act,
applies only to a tax year beginning on or after January 1, 2020.
SECTION 5. This Act takes effect January 1, 2020, but only
if the constitutional amendment proposed by the 86th Legislature,
Regular Session, 2019, authorizing the legislature to exempt from
ad valorem taxation precious metal held in a precious metal
depository located in this state is approved by the voters. If that
amendment is not approved by the voters, this Act has no effect.
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