Texas Senate Bill SB1937

Texas 2019 - 86th Regular

Caption

Relating to the situs for ad valorem tax purposes of certain docks and piers located in more than one county.

Impact

The implications of SB1937 on state laws include a redefinition of tax situs, which could streamline the taxing process for property owners with docks and piers. The bill may resolve potential disputes between counties over taxation rights and clarify responsibilities, ultimately benefiting both local governments and property owners. The change is particularly relevant for individuals and businesses that own waterfront properties and could simplify tax compliance by establishing a clear taxing county based on the location of support structures.

Summary

SB1937 addresses the ad valorem taxation of certain docks and piers that are situated across two counties. Specifically, this bill seeks to clarify which county retains the authority to tax these structures and their associated property. Under the provisions of this bill, if a dock is supported by the mainland of one county, it is taxable by that county. Conversely, if a pier extends into the submerged lands of another county, the taxation responsibility lies with the county that governs those submerged lands. This ensures a clear and equitable taxation framework for properties that span multiple jurisdictions.

Contention

While the bill aims to reduce ambiguity in taxation assignments, some stakeholders may still raise concerns regarding the fairness of the distribution of tax revenues between counties. As docks and piers often serve recreational or commercial purposes, differing tax rates and policies across counties may lead to contention among local governments. There is also the potential for differing interpretations of 'mainland' and 'submerged land', which could lead to challenges in enforcement or compliance. Overall, the balance between local taxation authority and inter-county agreements will be critical in the bill's application.