| 1 | 1 | | By: Fallon S.B. No. 1903 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the exemption of precious metals held in a depository in |
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| 7 | 7 | | this state from ad valorem taxation. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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| 10 | 10 | | adding Section 11.35 to read as follows: |
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| 11 | 11 | | Sec. 11.35 PRECIOUS METALS HELD IN DEPOSITORY. (a) Precious |
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| 12 | 12 | | metals are exempt from taxation if they are held in a commercial |
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| 13 | 13 | | depository in this state. |
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| 14 | 14 | | (b) For the purposes of this section, "precious metals" has |
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| 15 | 15 | | the meaning assigned by Section 2116.001, Government Code. |
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| 16 | 16 | | (c) For the purposes of this section, a "commercial |
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| 17 | 17 | | depository" is a depository that: |
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| 18 | 18 | | (1) is primarily engaged in the business of providing |
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| 19 | 19 | | precious metals storage services to the general public; and, |
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| 20 | 20 | | (2) maintains sufficient insurance to cover the |
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| 21 | 21 | | precious metals deposits held within the depository. |
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| 22 | 22 | | (d) The comptroller may adopt rules to implement this |
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| 23 | 23 | | section. |
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| 24 | 24 | | SECTION 2. Section 11.43, Tax Code, is amended by amending |
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| 25 | 25 | | Subsection (a) to read as follows: |
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| 26 | 26 | | (a) To receive an exemption, a person claiming the |
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| 27 | 27 | | exemption, other than an exemption authorized by Section 11.11, |
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| 28 | 28 | | 11.12, 11.14, 11.145, 11.146, 11.15, 11.16, 11.161, [or] 11.25, or |
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| 29 | 29 | | 11.35 of this code, must apply for the exemption. To apply for an |
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| 30 | 30 | | exemption, a person must file an exemption application form with |
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| 31 | 31 | | the chief appraiser for each appraisal district in which the |
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| 32 | 32 | | property subject to the claimed exemption has situs. |
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| 33 | 33 | | SECTION 3. This Act takes effect on the date on which the |
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| 34 | 34 | | constitutional amendment proposed by the 86th Legislature, Regular |
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| 35 | 35 | | Session, 2019, authorizing the legislature by general law to exempt |
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| 36 | 36 | | from ad valorem taxation precious metals held in a depository in |
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| 37 | 37 | | this state is approved by the voters. If that amendment is not |
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| 38 | 38 | | approved by the voters, this Act has no effect. |
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