| 12 | | - | SECTION 1. Section 11.4391, Tax Code, is amended by |
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| 13 | | - | amending Subsection (b) and adding Subsection (b-1) to read as |
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| 9 | + | SECTION 1. Section 11.4391(b), Tax Code, is amended to read |
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| 10 | + | as follows: |
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| 11 | + | (b) If the application is approved, the property owner is |
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| 12 | + | liable to each taxing unit allowing the exemption for a penalty in |
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| 13 | + | an amount equal to 10 percent of the difference between the amount |
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| 14 | + | of tax imposed by the taxing unit on the inventory or property, a |
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| 15 | + | portion of which consists of freeport goods, and the amount that |
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| 16 | + | would otherwise have been imposed up to a maximum penalty of 10 |
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| 17 | + | percent of the tax imposed with the exemption. |
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| 18 | + | SECTION 2. Section 21.10(b), Tax Code, is amended to read as |
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| 15 | | - | (b) Except as provided by Subsection (b-1), if [If] the |
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| 16 | | - | application is approved, the property owner is liable to each |
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| 17 | | - | taxing unit allowing the exemption for a penalty in an amount equal |
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| 18 | | - | to 10 percent of the difference between the amount of tax imposed by |
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| 19 | | - | the taxing unit on the inventory or property, a portion of which |
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| 20 | | - | consists of freeport goods, and the amount that would otherwise |
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| 21 | | - | have been imposed up to a maximum penalty of 10 percent of the tax |
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| 22 | | - | imposed with the exemption. |
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| 23 | | - | (b-1) If the total amount of the penalties for which a |
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| 24 | | - | property owner is liable under Subsection (b) to the taxing units |
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| 25 | | - | allowing the exemption is less than $5,000, the amount of the |
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| 26 | | - | penalty for which the owner is liable to each taxing unit allowing |
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| 27 | | - | the exemption is computed by multiplying $5,000 by a fraction, the |
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| 28 | | - | numerator of which is the amount of the penalty to which that taxing |
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| 29 | | - | unit is entitled as calculated under that subsection and the |
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| 30 | | - | denominator of which is the total amount of the penalties to which |
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| 31 | | - | the taxing units allowing the exemption are entitled as calculated |
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| 32 | | - | under that subsection. |
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| 33 | | - | SECTION 2. Section 21.10, Tax Code, is amended by amending |
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| 34 | | - | Subsection (b) and adding Subsection (b-1) to read as follows: |
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| 35 | | - | (b) Except as provided by Subsection (b-1), if [If] the |
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| 36 | | - | application is approved, the property owner is liable to each |
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| 37 | | - | taxing unit for a penalty in an amount equal to 10 percent of the |
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| 38 | | - | difference between the amount of tax imposed by the taxing unit on |
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| 39 | | - | the property without the allocation and the amount of tax imposed on |
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| 40 | | - | the property with the allocation up to a maximum penalty of 10 |
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| 41 | | - | percent of the tax imposed with the allocation. |
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| 42 | | - | (b-1) If the total amount of the penalties for which a |
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| 43 | | - | property owner is liable under Subsection (b) to the taxing units |
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| 44 | | - | that tax the property is less than $5,000, the amount of the penalty |
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| 45 | | - | for which the owner is liable to each taxing unit that taxes the |
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| 46 | | - | property is computed by multiplying $5,000 by a fraction, the |
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| 47 | | - | numerator of which is the amount of the penalty to which that taxing |
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| 48 | | - | unit is entitled as calculated under that subsection and the |
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| 49 | | - | denominator of which is the total amount of the penalties to which |
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| 50 | | - | the taxing units that tax the property are entitled as calculated |
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| 51 | | - | under that subsection. |
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| 52 | | - | SECTION 3. Section 11.4391, Tax Code, as amended by this |
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| 20 | + | (b) If the application is approved, the property owner is |
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| 21 | + | liable to each taxing unit for a penalty in an amount equal to 10 |
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| 22 | + | percent of the difference between the amount of tax imposed by the |
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| 23 | + | taxing unit on the property without the allocation and the amount of |
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| 24 | + | tax imposed on the property with the allocation up to a maximum |
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| 25 | + | penalty of 10 percent of the tax imposed with the allocation. |
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| 26 | + | SECTION 3. Section 11.4391(b), Tax Code, as amended by this |
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