Texas 2021 - 87th Regular

Texas House Bill HB4495 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R7270 TJB-F
2	2	By: Murphy H.B. No. 4495
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the allocation for ad valorem tax purposes of the value
8	8	of vessels and other watercraft used outside this state.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 21.021(a) and (b), Tax Code, are
11	11	amended to read as follows:
12	12	(a) A vessel or other watercraft used as an instrumentality
13	13	of commerce, [(]as defined by [in] Section 21.031, [21.031(b) of
14	14	this code)] is taxable pursuant to Section 21.02 [of this code].
15	15	(b) A special-purpose vessel or other watercraft not used as
16	16	an instrumentality of commerce, [(]as defined by [in] Section
17	17	21.031, [21.031(b) of this code)] is deemed to be located on January
18	18	1 for more than a temporary period for purposes of Section 21.02 [of
19	19	this code] in the taxing unit in which it was physically located
20	20	during the year preceding the tax year. If the vessel or watercraft
21	21	was physically located in more than one taxing unit during the year
22	22	preceding the tax year, it is deemed to be located for more than a
23	23	temporary period for purposes of Section 21.02 [of this code] in the
24	24	taxing unit in which it was physically located for the longest
25	25	period during the year preceding the tax year or for 30 days,
26	26	whichever is longer. If a vessel or other watercraft is not deemed
27	27	to be located in any taxing unit on January 1 for more than a
28	28	temporary period pursuant to this subsection, the property is
29	29	taxable as provided by Subdivisions (2) through (4) of Section
30	30	21.02 [of this code].
31	31	SECTION 2. Section 21.031, Tax Code, is amended by amending
32	32	Subsection (b) and adding Subsections (b-1), (b-2), (b-3), and (i)
33	33	to read as follows:
34	34	(b) The appraisal office shall make the allocation as
35	35	provided by Subsections (b-1), (b-2), and (b-3).
36	36	(b-1) Except as provided by Subsection (b-2), the [follows:
37	37	[(1) The] allocable portion of the total fair market
38	38	value of a vessel or other watercraft used as an instrumentality of
39	39	commerce that is taxable in this state is determined by multiplying
40	40	the total fair market value by a fraction, the numerator of which is
41	41	the number of miles the vessel or watercraft was operated in this
42	42	state during the year preceding the tax year and the denominator of
43	43	which is the total number of miles the vessel or watercraft was
44	44	operated during the year preceding the tax year. [For purposes of
45	45	this section, "vessel or other watercraft used as an
46	46	instrumentality of commerce" means a vessel or other watercraft
47	47	that is primarily employed in the transportation of cargo,
48	48	passengers, or equipment, and that is economically employed when it
49	49	is moving from point to point as a means of transportation.]
50	50	(b-2) This subsection applies only to a property owner that
51	51	operates a fleet of vessels or other watercraft used as
52	52	instrumentalities of commerce and that elects in writing submitted
53	53	to the appraisal office to have the appraisal office make the
54	54	allocation under this subsection. The allocable portion of the
55	55	total fair market value of a vessel or other watercraft used as an
56	56	instrumentality of commerce that is taxable in this state is
57	57	determined by multiplying the total fair market value of all
58	58	vessels or other watercraft of the property owner's fleet that are
59	59	taxable in this state by a fraction, the numerator of which is the
60	60	number of miles that all the vessels or watercraft of the fleet
61	61	operated in this state during the year preceding the tax year and
62	62	the denominator of which is the total number of miles that all the
63	63	vessels or watercraft of the fleet were operated during the year
64	64	preceding the tax year.
65	65	(b-3) [(2)] The allocable portion of the total fair market
66	66	value of a special-purpose vessel or other watercraft not used as an
67	67	instrumentality of commerce is determined by multiplying the total
68	68	fair market value by a fraction, the numerator of which is the
69	69	number of days the vessel or watercraft was physically located in
70	70	this state during the year preceding the tax year and the
71	71	denominator of which is 365. [For purposes of this section,
72	72	"special-purpose vessel or other watercraft not used as an
73	73	instrumentality of commerce" means a vessel or other watercraft
74	74	that:
75	75	[(A) is designed to be transient and customarily
76	76	is moved from location to location on a more or less regular basis;
77	77	[(B) is economically employed when operated in a
78	78	localized area or in a fixed place; and
79	79	[(C) is not primarily employed to transport cargo,
80	80	passengers, and equipment but rather to perform some specialized
81	81	function or operation not requiring constant movement from point to
82	82	point.]
83	83	(i) For purposes of this section:
84	84	(1) "Special-purpose vessel or other watercraft not
85	85	used as an instrumentality of commerce" means a vessel or other
86	86	watercraft that:
87	87	(A) is designed to be transient and customarily
88	88	is moved from location to location on a more or less regular basis;
89	89	(B) is economically employed when operated in a
90	90	localized area or in a fixed place; and
91	91	(C) is not primarily employed to transport cargo,
92	92	passengers, and equipment but rather to perform some specialized
93	93	function or operation not requiring constant movement from point to
94	94	point.
95	95	(2) "Vessel or other watercraft used as an
96	96	instrumentality of commerce" means a vessel or other watercraft
97	97	that is primarily employed in the transportation of cargo,
98	98	passengers, or equipment, and that is economically employed when it
99	99	is moving from point to point as a means of transportation.
100	100	SECTION 3. The change in law made by this Act applies only
101	101	to the allocation of the value of vessels and other watercraft for
102	102	ad valorem tax purposes beginning on or after the effective date of
103	103	this Act.
104	104	SECTION 4. This Act takes effect January 1, 2022.