86R21834 JES-F
By: Hughes S.B. No. 1013
(Murphy)
Substitute the following for S.B. No. 1013: No.
A BILL TO BE ENTITLED
AN ACT
relating to the calculation of the penalty for filing a late
application for certain ad valorem tax exemptions and allocations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.4391, Tax Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) Except as provided by Subsection (b-1), if [If] the
application is approved, the property owner is liable to each
taxing unit allowing the exemption for a penalty in an amount equal
to 10 percent of the difference between the amount of tax imposed by
the taxing unit on the inventory or property, a portion of which
consists of freeport goods, and the amount that would otherwise
have been imposed up to a maximum penalty of 10 percent of the tax
imposed with the exemption.
(b-1) If the total amount of the penalties for which a
property owner is liable under Subsection (b) to the taxing units
allowing the exemption is less than $5,000, the amount of the
penalty for which the owner is liable to each taxing unit allowing
the exemption is computed by multiplying $5,000 by a fraction, the
numerator of which is the amount of the penalty to which that taxing
unit is entitled as calculated under that subsection and the
denominator of which is the total amount of the penalties to which
the taxing units allowing the exemption are entitled as calculated
under that subsection.
SECTION 2. Section 21.10, Tax Code, is amended by amending
Subsection (b) and adding Subsection (b-1) to read as follows:
(b) Except as provided by Subsection (b-1), if [If] the
application is approved, the property owner is liable to each
taxing unit for a penalty in an amount equal to 10 percent of the
difference between the amount of tax imposed by the taxing unit on
the property without the allocation and the amount of tax imposed on
the property with the allocation up to a maximum penalty of 10
percent of the tax imposed with the allocation.
(b-1) If the total amount of the penalties for which a
property owner is liable under Subsection (b) to the taxing units
that tax the property is less than $5,000, the amount of the penalty
for which the owner is liable to each taxing unit that taxes the
property is computed by multiplying $5,000 by a fraction, the
numerator of which is the amount of the penalty to which that taxing
unit is entitled as calculated under that subsection and the
denominator of which is the total amount of the penalties to which
the taxing units that tax the property are entitled as calculated
under that subsection.
SECTION 3. Section 11.4391, Tax Code, as amended by this
Act, applies only to an application for an exemption for freeport
goods under Section 11.251, Tax Code, filed on or after the
effective date of this Act.
SECTION 4. Section 21.10, Tax Code, as amended by this Act,
applies only to an application for an allocation under Section
21.09, Tax Code, filed on or after the effective date of this Act.
SECTION 5. This Act takes effect September 1, 2019.