Texas 2023 - 88th Regular

Texas House Bill HB2987 Compare Versions

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1	1	88R2892 RDS-D
2	2	By: Metcalf H.B. No. 2987
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the exemption of tangible personal property from ad
8	8	valorem taxation; making conforming changes.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 6.24(b), Tax Code, is amended to read as
11	11	follows:
12	12	(b) The commissioners court with the approval of the county
13	13	assessor-collector may contract as provided by the Interlocal
14	14	Cooperation Act with the governing body of another taxing unit in
15	15	the county or with the board of directors of the appraisal district
16	16	for the other taxing unit or the district to perform duties relating
17	17	to the assessment or collection of taxes for the county. If a
18	18	county contracts to have its taxes assessed and collected by
19	19	another taxing unit or by the appraisal district, [except as
20	20	provided by Subsection (c),] the contract shall require the other
21	21	taxing unit or the district to assess and collect all taxes the
22	22	county is required to assess and collect.
23	23	SECTION 2. The heading to Section 11.01, Tax Code, is
24	24	amended to read as follows:
25	25	Sec. 11.01. REAL [AND TANGIBLE PERSONAL] PROPERTY.
26	26	SECTION 3. Section 11.01(a), Tax Code, is amended to read as
27	27	follows:
28	28	(a) All real [and tangible personal] property that this
29	29	state has jurisdiction to tax is taxable unless exempt by law.
30	30	SECTION 4. Subchapter A, Chapter 11, Tax Code, is amended by
31	31	adding Section 11.015 to read as follows:
32	32	Sec. 11.015. TANGIBLE PERSONAL PROPERTY. (a) Tangible
33	33	personal property is not taxable for a tax year that begins on or
34	34	after January 1, 2024.
35	35	(b) On and after January 1, 2024, a provision of this code or
36	36	another law that would otherwise apply to the taxation of tangible
37	37	personal property for a tax year that begins on or after that date
38	38	has no effect for that tax year.
39	39	SECTION 5. Section 11.18(a), Tax Code, is amended to read as
40	40	follows:
41	41	(a) An organization that qualifies as a charitable
42	42	organization as provided by this section is entitled to an
43	43	exemption from taxation of:
44	44	(1) the buildings [and tangible personal property]
45	45	that:
46	46	(A) are owned by the charitable organization; and
47	47	(B) except as permitted by Subsection (b), are
48	48	used exclusively by qualified charitable organizations; and
49	49	(2) the real property owned by the charitable
50	50	organization consisting of:
51	51	(A) an incomplete improvement that:
52	52	(i) is under active construction or other
53	53	physical preparation; and
54	54	(ii) is designed and intended to be used
55	55	exclusively by qualified charitable organizations; and
56	56	(B) the land on which the incomplete improvement
57	57	is located that will be reasonably necessary for the use of the
58	58	improvement by qualified charitable organizations.
59	59	SECTION 6. Section 11.181(c), Tax Code, is amended to read
60	60	as follows:
61	61	(c) An organization entitled to an exemption under
62	62	Subsection (a) is also entitled to an exemption from taxation of any
63	63	building [or tangible personal property] the organization owns and
64	64	uses in the administration of its acquisition, building, repair, or
65	65	sale of property. To qualify for an exemption under this
66	66	subsection, property must be used exclusively by the charitable
67	67	organization, except that another individual or organization may
68	68	use the property for activities incidental to the charitable
69	69	organization's use that benefit the beneficiaries of the charitable
70	70	organization.
71	71	SECTION 7. Section 11.182(f), Tax Code, is amended to read
72	72	as follows:
73	73	(f) An organization entitled to an exemption under
74	74	Subsection (b) is also entitled to an exemption from taxation of any
75	75	building [or tangible personal property] the organization owns and
76	76	uses in the administration of its acquisition, building, repair,
77	77	sale, or rental of property. To qualify for an exemption under this
78	78	subsection, property must be used exclusively by the organization,
79	79	except that another person may use the property for activities
80	80	incidental to the organization's use that benefit the beneficiaries
81	81	of the organization.
82	82	SECTION 8. Section 11.1827(d), Tax Code, is amended to read
83	83	as follows:
84	84	(d) A community land trust entitled to an exemption from
85	85	taxation by a taxing unit under Subsection (b) is also entitled to
86	86	an exemption from taxation by the taxing unit of any real [or
87	87	tangible personal] property the trust owns and uses in the
88	88	administration of its acquisition, construction, repair, sale, or
89	89	leasing of property. To qualify for an exemption under this
90	90	subsection, property must be used exclusively by the trust, except
91	91	that another person may use the property for activities incidental
92	92	to the trust's use that benefit the beneficiaries of the trust.
93	93	SECTION 9. Section 11.184(c), Tax Code, is amended to read
94	94	as follows:
95	95	(c) A qualified charitable organization is entitled to an
96	96	exemption from taxation of:
97	97	(1) the buildings and other real property [and the
98	98	tangible personal property] that:
99	99	(A) are owned by the organization; and
100	100	(B) except as permitted by Subsection (d), are
101	101	used exclusively by the organization and other organizations
102	102	eligible for an exemption from taxation under this section or
103	103	Section 11.18; and
104	104	(2) the real property owned by the organization
105	105	consisting of:
106	106	(A) an incomplete improvement that:
107	107	(i) is under active construction or other
108	108	physical preparation; and
109	109	(ii) is designed and intended to be used
110	110	exclusively by the organization and other organizations eligible
111	111	for an exemption from taxation under this section or Section 11.18;
112	112	and
113	113	(B) the land on which the incomplete improvement
114	114	is located that will be reasonably necessary for the use of the
115	115	improvement by the organization and other organizations eligible
116	116	for an exemption from taxation under this section or Section 11.18.
117	117	SECTION 10. Section 11.185(c), Tax Code, is amended to read
118	118	as follows:
119	119	(c) An organization entitled to an exemption under
120	120	Subsection (a) is also entitled to an exemption from taxation of any
121	121	building [or tangible personal property] the organization owns and
122	122	uses in the administration of its acquisition, building, repair, or
123	123	sale of property. To qualify for an exemption under this
124	124	subsection, property must be used exclusively by the charitable
125	125	organization, except that another individual or organization may
126	126	use the property for activities incidental to the charitable
127	127	organization's use that benefit the beneficiaries of the charitable
128	128	organization.
129	129	SECTION 11. Sections 11.20(a), (d), (f), (g), (h), (j), and
130	130	(k), Tax Code, are amended to read as follows:
131	131	(a) An organization that qualifies as a religious
132	132	organization as provided by Subsection (c) is entitled to an
133	133	exemption from taxation of:
134	134	(1) the real property that is owned by the religious
135	135	organization, is used primarily as a place of regular religious
136	136	worship, and is reasonably necessary for engaging in religious
137	137	worship;
138	138	(2) [the tangible personal property that is owned by
139	139	the religious organization and is reasonably necessary for engaging
140	140	in worship at the place of worship specified in Subdivision (1);
141	141	[(3)] the real property that is owned by the religious
142	142	organization and is reasonably necessary for use as a residence
143	143	(but not more than one acre of land for each residence) if the
144	144	property:
145	145	(A) is used exclusively as a residence for those
146	146	individuals whose principal occupation is to serve in the clergy of
147	147	the religious organization; and
148	148	(B) produces no revenue for the religious
149	149	organization;
150	150	(3) [(4) the tangible personal property that is owned
151	151	by the religious organization and is reasonably necessary for use
152	152	of the residence specified by Subdivision (3);
153	153	[(5)] the real property owned by the religious
154	154	organization consisting of:
155	155	(A) an incomplete improvement that is under
156	156	active construction or other physical preparation and that is
157	157	designed and intended to be used by the religious organization as a
158	158	place of regular religious worship when complete; and
159	159	(B) the land on which the incomplete improvement
160	160	is located that will be reasonably necessary for the religious
161	161	organization's use of the improvement as a place of regular
162	162	religious worship;
163	163	(4) [(6)] the land that the religious organization
164	164	owns for the purpose of expansion of the religious organization's
165	165	place of regular religious worship or construction of a new place of
166	166	regular religious worship if:
167	167	(A) the religious organization qualifies other
168	168	property, including a portion of the same tract or parcel of land,
169	169	owned by the organization for an exemption under Subdivision (1) or
170	170	(3) [(5)]; and
171	171	(B) the land produces no revenue for the
172	172	religious organization; and
173	173	(5) [(7)] the real property owned by the religious
174	174	organization that is leased to another person and used by that
175	175	person for the operation of a school that qualifies as a school
176	176	under Section 11.21(d).
177	177	(d) Use of property that qualifies for the exemption
178	178	prescribed by Subsection (a)(1) or [(2) or by Subsection] (h)(1)
179	179	for occasional secular purposes other than religious worship does
180	180	not result in loss of the exemption if the primary use of the
181	181	property is for religious worship and all income from the other use
182	182	is devoted exclusively to the maintenance and development of the
183	183	property as a place of religious worship.
184	184	(f) A property may not be exempted under Subsection (a)(3)
185	185	[(a)(5)] for more than three years.
186	186	(g) For purposes of Subsection (a)(3) [(a)(5)], an
187	187	incomplete improvement is under physical preparation if the
188	188	religious organization has engaged in architectural or engineering
189	189	work, soil testing, land clearing activities, or site improvement
190	190	work necessary for the construction of the improvement or has
191	191	conducted an environmental or land use study relating to the
192	192	construction of the improvement.
193	193	(h) Property owned by this state or a political subdivision
194	194	of this state, including a leasehold or other possessory interest
195	195	in the property, that is held or occupied by an organization that
196	196	qualifies as a religious organization as provided by Subsection (c)
197	197	is entitled to an exemption from taxation if the property:
198	198	(1) is used by the organization primarily as a place of
199	199	regular religious worship and is reasonably necessary for engaging
200	200	in religious worship; or
201	201	(2) meets the qualifications for an exemption under
202	202	Subsection (a)(3) [(a)(5)].
203	203	(j) A tract of land that is contiguous to the tract of land
204	204	on which the religious organization's place of regular religious
205	205	worship is located may not be exempted under Subsection (a)(4)
206	206	[(a)(6)] for more than 10 years. A tract of land that is not
207	207	contiguous to the tract of land on which the religious
208	208	organization's place of regular religious worship is located may
209	209	not be exempted under Subsection (a)(4) [(a)(6)] for more than
210	210	three years. For purposes of this subsection, a tract of land is
211	211	considered to be contiguous with another tract of land if the tracts
212	212	are divided only by a road, railroad track, river, or stream.
213	213	(k) For purposes of Subsection (a)(4) [(a)(6)], an
214	214	application or statement accompanying an application for the
215	215	exemption stating that the land is owned for the purposes described
216	216	by Subsection (a)(4) [(a)(6)] and signed by an authorized officer
217	217	of the organization is sufficient to establish that the land is
218	218	owned for those purposes.
219	219	SECTION 12. Sections 11.201(a) and (c), Tax Code, are
220	220	amended to read as follows:
221	221	(a) If land is sold or otherwise transferred to another
222	222	person in a year in which the land receives an exemption under
223	223	Section 11.20(a)(4) [11.20(a)(6)], an additional tax is imposed on
224	224	the land equal to the tax that would have been imposed on the land
225	225	had the land been taxed for each of the five years preceding the
226	226	year in which the sale or transfer occurs in which the land received
227	227	an exemption under that subsection, plus interest at an annual rate
228	228	of seven percent calculated from the dates on which the taxes would
229	229	have become due.
230	230	(c) If only part of a parcel of land that is exempted under
231	231	Section 11.20(a)(4) [11.20(a)(6)] is sold or transferred, the tax
232	232	applies only to that part of the parcel and equals the taxes that
233	233	would have been imposed had that part been taxed.
234	234	SECTION 13. Sections 11.21(a), (b), and (f), Tax Code, are
235	235	amended to read as follows:
236	236	(a) A person is entitled to an exemption from taxation of:
237	237	(1) the buildings [and tangible personal property]
238	238	that the person owns and that are used for a school that is
239	239	qualified as provided by Subsection (d) if:
240	240	(A) the school is operated exclusively by the
241	241	person owning the property;
242	242	(B) except as permitted by Subsection (b), the
243	243	buildings [and tangible personal property] are used exclusively for
244	244	educational functions; and
245	245	(C) the buildings [and tangible personal
246	246	property] are reasonably necessary for the operation of the school;
247	247	and
248	248	(2) the real property owned by the person consisting
249	249	of:
250	250	(A) an incomplete improvement that:
251	251	(i) is under active construction or other
252	252	physical preparation; and
253	253	(ii) is designed and intended to be used for
254	254	a school that is qualified as provided by Subsection (d); and
255	255	(B) the land on which the incomplete improvement
256	256	is located that will be reasonably necessary for the use of the
257	257	improvement for a school that is qualified as provided by
258	258	Subsection (d).
259	259	(b) Use of exempt [tangible] property for functions other
260	260	than educational functions does not result in loss of an exemption
261	261	authorized by this section if those other functions are incidental
262	262	to use of the property for educational functions and benefit the
263	263	students or faculty of the school.
264	264	(f) Notwithstanding Subsection (a), a person is entitled to
265	265	an exemption from taxation of the buildings [and tangible personal
266	266	property] the person acquires for use for a school that meets each
267	267	requirement of Subsection (d) if:
268	268	(1) the person authorizes the former owner to continue
269	269	to use the property pending the use of the property for a school;
270	270	and
271	271	(2) the former owner would be entitled to an exemption
272	272	from taxation of the property if the former owner continued to own
273	273	the property.
274	274	SECTION 14. Section 11.23(m), Tax Code, is amended to read
275	275	as follows:
276	276	(m) National Hispanic Institute. The National Hispanic
277	277	Institute is entitled to an exemption from taxation of the real [and
278	278	tangible personal] property it owns as long as the organization is
279	279	exempt from federal income taxation under Section 501(a), Internal
280	280	Revenue Code of 1986, as an organization described by Section
281	281	501(c)(3) of that code.
282	282	SECTION 15. Section 11.231(b), Tax Code, is amended to read
283	283	as follows:
284	284	(b) An association that qualifies as a nonprofit community
285	285	business organization as provided by this section is entitled to an
286	286	exemption from taxation of:
287	287	(1) the buildings [and tangible personal property]
288	288	that:
289	289	(A) are owned by the nonprofit community business
290	290	organization; and
291	291	(B) except as permitted by Subsection (c), are
292	292	used exclusively by qualified nonprofit community business
293	293	organizations to perform their primary functions; and
294	294	(2) the real property owned by the nonprofit community
295	295	business organization consisting of:
296	296	(A) an incomplete improvement that:
297	297	(i) is under active construction or other
298	298	physical preparation; and
299	299	(ii) is designed and intended to be used
300	300	exclusively by qualified nonprofit community business
301	301	organizations; and
302	302	(B) the land on which the incomplete improvement
303	303	is located that will be reasonably necessary for the use of the
304	304	improvement by qualified nonprofit community business
305	305	organizations.
306	306	SECTION 16. Section 11.35(a)(2), Tax Code, is amended to
307	307	read as follows:
308	308	(2) "Qualified property" means property that:
309	309	(A) consists of:
310	310	(i) [tangible personal property used for
311	311	the production of income;
312	312	[(ii)] an improvement to real property; or
313	313	(ii) [(iii)] a manufactured home as that
314	314	term is defined by Section 1201.003, Occupations Code, that is used
315	315	as a dwelling, regardless of whether the owner of the manufactured
316	316	home elects to treat the manufactured home as real property under
317	317	Section 1201.2055, Occupations Code;
318	318	(B) is located in an area declared by the
319	319	governor to be a disaster area following a disaster; and
320	320	(C) is at least 15 percent damaged by the
321	321	disaster, as determined by the chief appraiser under this section[;
322	322	and
323	323	[(D) for property described by Paragraph (A)(i),
324	324	is the subject of a rendition statement or property report filed by
325	325	the property owner under Section 22.01 that demonstrates that the
326	326	property had taxable situs in the disaster area for the tax year in
327	327	which the disaster occurred].
328	328	SECTION 17. Section 11.35(g), Tax Code, is amended to read
329	329	as follows:
330	330	(g) The chief appraiser shall assign to an item of qualified
331	331	property:
332	332	(1) a Level I damage assessment rating if the property
333	333	is at least 15 percent, but less than 30 percent, damaged, meaning
334	334	that the property suffered minimal damage and may continue to be
335	335	used as intended;
336	336	(2) a Level II damage assessment rating if the
337	337	property is at least 30 percent, but less than 60 percent, damaged,
338	338	meaning [which, for qualified property described by Subsection
339	339	(a)(2)(A)(ii) or (iii), means] that the property has suffered only
340	340	nonstructural damage, including nonstructural damage to the roof,
341	341	walls, foundation, or mechanical components, and the waterline, if
342	342	any, is less than 18 inches above the floor;
343	343	(3) a Level III damage assessment rating if the
344	344	property is at least 60 percent damaged but is not a total loss,
345	345	meaning [which, for qualified property described by Subsection
346	346	(a)(2)(A)(ii) or (iii), means] that the property has suffered
347	347	significant structural damage requiring extensive repair due to the
348	348	failure or partial failure of structural elements, wall elements,
349	349	or the foundation, or the waterline is at least 18 inches above the
350	350	floor; or
351	351	(4) a Level IV damage assessment rating if the
352	352	property is a total loss, meaning that repair of the property is not
353	353	feasible.
354	354	SECTION 18. Section 11.42(b), Tax Code, is amended to read
355	355	as follows:
356	356	(b) An exemption authorized by Section 11.11 [or 11.141] is
357	357	effective immediately on qualification for the exemption.
358	358	SECTION 19. Sections 11.43(a), (b), (c), and (e), Tax Code,
359	359	are amended to read as follows:
360	360	(a) To receive an exemption, a person claiming the
361	361	exemption, other than an exemption authorized by Section 11.11,
362	362	11.12, or [11.14, 11.141, 11.145,] 11.146[, 11.15, 11.16, 11.161,
363	363	or 11.25], must apply for the exemption. To apply for an exemption,
364	364	a person must file an exemption application form with the chief
365	365	appraiser for each appraisal district in which the property subject
366	366	to the claimed exemption has situs.
367	367	(b) Except as provided by Subsection (c) and by Section
368	368	[Sections] 11.184 [and 11.437], a person required to apply for an
369	369	exemption must apply each year the person claims entitlement to the
370	370	exemption.
371	371	(c) An exemption provided by Section 11.13, 11.131, 11.132,
372	372	11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
373	373	11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
374	374	[11.254], 11.27, [11.271,] 11.29, 11.30, 11.31, [11.315,] or 11.35,
375	375	once allowed, need not be claimed in subsequent years, and except as
376	376	otherwise provided by Subsection (e), the exemption applies to the
377	377	property until it changes ownership or the person's qualification
378	378	for the exemption changes. However, except as provided by
379	379	Subsection (r), the chief appraiser may require a person allowed
380	380	one of the exemptions in a prior year to file a new application to
381	381	confirm the person's current qualification for the exemption by
382	382	delivering a written notice that a new application is required,
383	383	accompanied by an appropriate application form, to the person
384	384	previously allowed the exemption. If the person previously allowed
385	385	the exemption is 65 years of age or older, the chief appraiser may
386	386	not cancel the exemption due to the person's failure to file the new
387	387	application unless the chief appraiser complies with the
388	388	requirements of Subsection (q), if applicable.
389	389	(e) Except as provided by Section 11.422, 11.431, 11.433,
390	390	11.434, 11.435, or 11.439, [or 11.4391,] if a person required to
391	391	apply for an exemption in a given year fails to file timely a
392	392	completed application form, the person may not receive the
393	393	exemption for that year.
394	394	SECTION 20. Section 21.06(a), Tax Code, is amended to read
395	395	as follows:
396	396	(a) Except as provided by Section 21.08 [Sections 21.07
397	397	through 21.09 of this code], intangible property is taxable by a
398	398	taxing unit if the owner of the property resides in the taxing unit
399	399	on January 1, unless the property normally is used in this state for
400	400	business purposes outside the taxing unit. In that event, the
401	401	intangible property is taxable by each taxing unit in which the
402	402	property normally is used for business purposes.
403	403	SECTION 21. Sections 22.01(a), (b), (c), (c-2), (f), and
404	404	(g), Tax Code, are amended to read as follows:
405	405	(a) [Except as provided by Chapter 24, a person shall render
406	406	for taxation all tangible personal property used for the production
407	407	of income that the person owns or that the person manages and
408	408	controls as a fiduciary on January 1.] A rendition statement shall
409	409	contain:
410	410	(1) the name and address of the property owner;
411	411	(2) a description of the property by type or category;
412	412	(3) [if the property is inventory, a description of
413	413	each type of inventory and a general estimate of the quantity of
414	414	each type of inventory;
415	415	[(4)] the physical location or taxable situs of the
416	416	property; and
417	417	(4) [(5)] the property owner's good faith estimate of
418	418	the market value of the property or, at the option of the property
419	419	owner, the historical cost when new and the year of acquisition of
420	420	the property.
421	421	(b) When required by the chief appraiser, a person shall
422	422	render for taxation any [other] taxable property that the person
423	423	[he] owns or that the person [he] manages and controls as a
424	424	fiduciary on January 1.
425	425	(c) A person may render for taxation any property that the
426	426	person [he] owns or that the person [he] manages and controls as a
427	427	fiduciary on January 1, although the person [he] is not required to
428	428	render it by Subsection [(a) or] (b) [of this section].
429	429	(c-2) With the consent of the property owner, a secured
430	430	party may render for taxation any property of the property owner in
431	431	which the secured party has a security interest on January 1,
432	432	although the secured party is not required to render the property by
433	433	Subsection [(a) or] (b). This subsection applies only to property
434	434	that has a historical cost when new of more than $50,000.
435	435	(f) Notwithstanding Subsection [Subsections] (a) [and (b)],
436	436	a rendition statement of a person who owns [tangible personal]
437	437	property [used for the production of income] located in the
438	438	appraisal district that, in the owner's opinion, has an aggregate
439	439	value of less than $20,000 is required to contain only:
440	440	(1) the name and address of the property owner;
441	441	(2) a general description of the property by type or
442	442	category; and
443	443	(3) the physical location or taxable situs of the
444	444	property.
445	445	(g) A person's good faith estimate of the market value of
446	446	the property under Subsection (a)(4) [(a)(5)] is solely for the
447	447	purpose of compliance with any [the] requirement to render
448	448	[tangible personal] property and is inadmissible in any subsequent
449	449	protest, hearing, appeal, suit, or other proceeding under this
450	450	title involving the property, except for:
451	451	(1) a proceeding to determine whether the person
452	452	complied with this section;
453	453	(2) a proceeding under Section 22.29(b); or
454	454	(3) a protest under Section 41.41.
455	455	SECTION 22. Section 22.02, Tax Code, is amended to read as
456	456	follows:
457	457	Sec. 22.02. RENDITION OF PROPERTY LOSING EXEMPTION DURING
458	458	TAX YEAR [OR FOR WHICH EXEMPTION APPLICATION IS DENIED]. [(a)] If
459	459	an exemption applicable to a property on January 1 terminates
460	460	during the tax year, the person who owns or acquires the property on
461	461	the date applicability of the exemption terminates shall render the
462	462	property for taxation within 30 days after the date of termination.
463	463	[(b) If the chief appraiser denies an application for an
464	464	exemption for property described by Section 22.01(a), the person
465	465	who owns the property on the date the application is denied shall
466	466	render the property for taxation in the manner provided by Section
467	467	22.01 within 30 days after the date of denial.]
468	468	SECTION 23. Section 22.05, Tax Code, is amended to read as
469	469	follows:
470	470	Sec. 22.05. RENDITION BY RAILROAD. (a) A [In addition to
471	471	other reports required by Chapter 24 of this code, a] railroad
472	472	corporation shall render the real property the railroad corporation
473	473	owns or possesses as of January 1.
474	474	(b) The rendition shall:
475	475	(1) list all real property other than the property
476	476	covered by Subdivision (2) [of this subsection]; and
477	477	(2) list the number of miles of railroad together with
478	478	the market value per mile, which value shall include right-of-way,
479	479	roadbed, superstructure, and all buildings and improvements used in
480	480	the operation of the railroad[; and
481	481	[(3) list all personal property as required by Section
482	482	22.01 of this code].
483	483	SECTION 24. The heading to Section 22.07, Tax Code, is
484	484	amended to read as follows:
485	485	Sec. 22.07. STATEMENT INDICATING HOW VALUE RENDERED
486	486	[INSPECTION OF PROPERTY].
487	487	SECTION 25. Section 22.07, Tax Code, is amended by amending
488	488	Subsection (c) and adding Subsection (c-1) to read as follows:
489	489	(c) The chief appraiser may request, either in writing or by
490	490	electronic means, that the property owner provide a statement
491	491	containing supporting information indicating how the value
492	492	rendered under Section 22.01(a)(4) [22.01(a)(5)] was determined.
493	493	The statement must:
494	494	(1) summarize information sufficient to identify the
495	495	property, including:
496	496	(A) the physical and economic characteristics
497	497	relevant to the opinion of value, if appropriate; and
498	498	(B) the source of the information used;
499	499	(2) state the effective date of the opinion of value;
500	500	and
501	501	(3) explain the basis of the value rendered.
502	502	(c-1) If the property owner is a business with 50 employees
503	503	or less, the property owner may base the estimate of value on the
504	504	depreciation schedules used for federal income tax purposes.
505	505	SECTION 26. Section 23.014, Tax Code, is amended to read as
506	506	follows:
507	507	Sec. 23.014. EXCLUSION OF PROPERTY AS REAL PROPERTY. In
508	508	[Except as provided by Section 23.24(b), in] determining the market
509	509	value of real property, the chief appraiser shall analyze the
510	510	effect on that value of, and exclude from that value the value of,
511	511	any:
512	512	(1) tangible personal property, including trade
513	513	fixtures;
514	514	(2) intangible personal property;
515	515	(3) chicken coops or rabbit pens used for the
516	516	noncommercial production of food for personal consumption; or
517	517	(4) other property that is not subject to appraisal as
518	518	real property.
519	519	SECTION 27. Sections 23.12(a) and (f), Tax Code, are
520	520	amended to read as follows:
521	521	(a) The [Except as provided by Sections 23.121, 23.1241,
522	522	23.124, and 23.127, the] market value of a real property [an]
523	523	inventory is the price for which it would sell as a unit to a
524	524	purchaser who would continue the business. A real property [An]
525	525	inventory includes [shall include] residential real property which
526	526	has never been occupied as a residence and is held for sale in the
527	527	ordinary course of a trade or business, provided that the
528	528	residential real property remains unoccupied, is not leased or
529	529	rented, and produces no income.
530	530	(f) The owner of an inventory [other than a dealer's motor
531	531	vehicle inventory as that term is defined by Section 23.121, a
532	532	dealer's heavy equipment inventory as that term is defined by
533	533	Section 23.1241, or a dealer's vessel and outboard motor inventory
534	534	as that term is defined by Section 23.124, or a retail manufactured
535	535	housing inventory as that term is defined by Section 23.127] may
536	536	elect to have the inventory appraised at its market value as of
537	537	September 1 of the year preceding the tax year to which the
538	538	appraisal applies by filing an application with the chief appraiser
539	539	requesting that the inventory be appraised as of September 1. The
540	540	application must clearly describe the inventory to which it applies
541	541	and be signed by the owner of the inventory. The application
542	542	applies to the appraisal of the inventory in each tax year that
543	543	begins after the next August 1 following the date the application is
544	544	filed with the chief appraiser unless the owner of the inventory by
545	545	written notice filed with the chief appraiser revokes the
546	546	application or the ownership of the inventory changes. A notice
547	547	revoking the application is effective for each tax year that begins
548	548	after the next September following the date the notice of
549	549	revocation is filed with the chief appraiser.
550	550	SECTION 28. Sections 25.25(e) and (m), Tax Code, are
551	551	amended to read as follows:
552	552	(e) If the chief appraiser and the property owner do not
553	553	agree to the correction before the 15th day after the date the
554	554	motion is filed, a party bringing a motion under Subsection (c)[,
555	555	(c-1),] or (d) is entitled on request to a hearing on and a
556	556	determination of the motion by the appraisal review board. A party
557	557	bringing a motion under this section must describe the error or
558	558	errors that the motion is seeking to correct. If a request for
559	559	hearing is made on or after January 1 but before September 1, the
560	560	appraisal review board shall schedule the hearing to be held as soon
561	561	as practicable but not later than the 90th day after the date the
562	562	board approves the appraisal records as provided by Section 41.12.
563	563	If a request for hearing is made on or after September 1 but before
564	564	January 1 of the following tax year, the appraisal review board
565	565	shall schedule the hearing to be held as soon as practicable but not
566	566	later than the 90th day after the date the request for the hearing
567	567	is made. Not later than 15 days before the date of the hearing, the
568	568	board shall deliver written notice of the date, time, and place of
569	569	the hearing to the chief appraiser, the property owner, and the
570	570	presiding officer of the governing body of each taxing unit in which
571	571	the property is located. The chief appraiser, the property owner,
572	572	and each taxing unit are entitled to present evidence and argument
573	573	at the hearing and to receive written notice of the board's
574	574	determination of the motion. The property owner is entitled to
575	575	elect to present the owner's evidence and argument before, after,
576	576	or between the cases presented by the chief appraiser and each
577	577	taxing unit. A property owner who files the motion must comply with
578	578	the payment requirements of Section 25.26 or forfeit the right to a
579	579	final determination of the motion.
580	580	(m) The hearing on a motion under Subsection (c)[, (c-1),]
581	581	or (d) shall be conducted in the manner provided by Subchapter C,
582	582	Chapter 41.
583	583	SECTION 29. Sections 26.012(6) and (15), Tax Code, are
584	584	amended to read as follows:
585	585	(6) "Current total value" means the total taxable
586	586	value of property listed on the appraisal roll for the current year,
587	587	including all appraisal roll supplements and corrections as of the
588	588	date of the calculation, less the taxable value of property
589	589	exempted for the current tax year for the first time under Section
590	590	11.31 [or 11.315], except that:
591	591	(A) the current total value for a school district
592	592	excludes:
593	593	(i) the total value of homesteads that
594	594	qualify for a tax limitation as provided by Section 11.26; and
595	595	(ii) new property value of property that is
596	596	subject to an agreement entered into under Chapter 313; and
597	597	(B) the current total value for a county,
598	598	municipality, or junior college district excludes the total value
599	599	of homesteads that qualify for a tax limitation provided by Section
600	600	11.261.
601	601	(15) "Lost property levy" means the amount of taxes
602	602	levied in the preceding year on property value that was taxable in
603	603	the preceding year but is not taxable in the current year because
604	604	the property is exempt in the current year under a provision of this
605	605	code other than Section [11.251, 11.253, or] 11.35, the property
606	606	has qualified for special appraisal under Chapter 23 in the current
607	607	year, or the property is located in territory that has ceased to be
608	608	a part of the taxing unit since the preceding year.
609	609	SECTION 30. Section 26.09(b), Tax Code, is amended to read
610	610	as follows:
611	611	(b) [The county assessor-collector shall add the properties
612	612	and their values certified to him as provided by Chapter 24 of this
613	613	code to the appraisal roll for county tax purposes.] The county
614	614	assessor-collector shall use the appraisal roll certified to the
615	615	county assessor-collector [him] as provided by Section 26.01 [with
616	616	the added properties and values] to calculate county taxes.
617	617	SECTION 31. Section 31.032(a), Tax Code, is amended to read
618	618	as follows:
619	619	(a) This section applies only to:
620	620	(1) real property that:
621	621	(A) is:
622	622	(i) the residence homestead of the owner or
623	623	consists of property that is used for residential purposes and that
624	624	has fewer than five living units; or
625	625	(ii) owned or leased by a business entity
626	626	that had not more than the amount calculated as provided by
627	627	Subsection (h) in gross receipts in the entity's most recent
628	628	federal tax year or state franchise tax annual period, according to
629	629	the applicable federal income tax return or state franchise tax
630	630	report of the entity;
631	631	(B) is located in a disaster area or emergency
632	632	area; and
633	633	(C) has been damaged as a direct result of the
634	634	disaster or emergency; and
635	635	(2) [tangible personal property that is owned or
636	636	leased by a business entity described by Subdivision (1)(A)(ii);
637	637	and
638	638	[(3)] taxes that are imposed on the property by a
639	639	taxing unit before the first anniversary of the disaster or
640	640	emergency.
641	641	SECTION 32. Section 31.033(b), Tax Code, is amended to read
642	642	as follows:
643	643	(b) This section applies only to:
644	644	(1) real property that:
645	645	(A) is owned or leased by a business entity that
646	646	had not more than the amount calculated as provided by Section
647	647	31.032(h) in gross receipts in the entity's most recent federal tax
648	648	year or state franchise tax annual period, according to the
649	649	applicable federal income tax return or state franchise tax report
650	650	of the entity;
651	651	(B) is located in a disaster area or emergency
652	652	area; and
653	653	(C) has not been damaged as a direct result of the
654	654	disaster or emergency; and
655	655	(2) [tangible personal property that is owned or
656	656	leased by a business entity described by Subdivision (1)(A); and
657	657	[(3)] taxes that are imposed on the property by a
658	658	taxing unit before the first anniversary of the disaster or
659	659	emergency.
660	660	SECTION 33. Section 31.06(e), Tax Code, is amended to read
661	661	as follows:
662	662	(e) A collector may adopt a written policy that requires
663	663	payment of delinquent taxes, penalties, interest, and costs and
664	664	expenses recoverable under Section 33.48 only with United States
665	665	currency, a cashier's check, a certified check, or an electronic
666	666	funds transfer if the payment relates to:
667	667	(1) [personal property seized under Subchapter B,
668	668	Chapter 33;
669	669	[(2)] property subject to an order of sale under
670	670	Subchapter C, Chapter 33; or
671	671	(2) [(3)] real property seized under Subchapter E,
672	672	Chapter 33.
673	673	SECTION 34. Section 41.44(a), Tax Code, is amended to read
674	674	as follows:
675	675	(a) Except as provided by Subsections (b), (c), (c-1), and
676	676	(c-2), to be entitled to a hearing and determination of a protest,
677	677	the property owner initiating the protest must file a written
678	678	notice of the protest with the appraisal review board having
679	679	authority to hear the matter protested:
680	680	(1) not later than May 15 or the 30th day after the
681	681	date that notice to the property owner was delivered to the property
682	682	owner as provided by Section 25.19, whichever is later;
683	683	(2) in the case of a protest of a change in the
684	684	appraisal records ordered as provided by Subchapter A of this
685	685	chapter or by Chapter 25, not later than the 30th day after the date
686	686	notice of the change is delivered to the property owner;
687	687	(3) in the case of a determination that a change in the
688	688	use of land appraised under Subchapter C, D, E, or H, Chapter 23,
689	689	has occurred, not later than the 30th day after the date the notice
690	690	of the determination is delivered to the property owner; or
691	691	(4) [in the case of a determination of eligibility for
692	692	a refund under Section 23.1243, not later than the 30th day after
693	693	the date the notice of the determination is delivered to the
694	694	property owner; or
695	695	[(5)] in the case of a protest of the modification or
696	696	denial of an application for an exemption under Section 11.35, or
697	697	the determination of an appropriate damage assessment rating for an
698	698	item of qualified property under that section, not later than the
699	699	30th day after the date the property owner receives the notice
700	700	required under Section 11.45(e).
701	701	SECTION 35. Section 42.01, Tax Code, is amended to read as
702	702	follows:
703	703	Sec. 42.01. RIGHT OF APPEAL BY PROPERTY OWNER. (a) A
704	704	property owner is entitled to appeal[:
705	705	[(1)] an order of the appraisal review board
706	706	determining:
707	707	(1) [(A)] a protest by the property owner as provided
708	708	by Subchapter C of Chapter 41;
709	709	(2) [(B)] a motion filed under Section 25.25;
710	710	(3) [(C)] that the property owner has forfeited the
711	711	right to a final determination of a motion filed under Section 25.25
712	712	or of a protest under Section 41.411 for failing to comply with the
713	713	prepayment requirements of Section 25.26 or 41.4115, as applicable;
714	714	or
715	715	(4) [(D) eligibility for a refund requested under
716	716	Section 23.1243; or
717	717	[(E)] that the appraisal review board lacks
718	718	jurisdiction to finally determine a protest by the property owner
719	719	under Subchapter C, Chapter 41, or a motion filed by the property
720	720	owner under Section 25.25 because the property owner failed to
721	721	comply with a requirement of Subchapter C, Chapter 41, or Section
722	722	25.25, as applicable[; or
723	723	[(2) an order of the comptroller issued as provided by
724	724	Subchapter B, Chapter 24, apportioning among the counties the
725	725	appraised value of railroad rolling stock owned by the property
726	726	owner].
727	727	(b) A property owner who establishes that the owner did not
728	728	forfeit the right to a final determination of a motion or of a
729	729	protest in an appeal under Subsection (a)(3) [(a)(1)(C)] is
730	730	entitled to a final determination of the court, as applicable:
731	731	(1) of the motion filed under Section 25.25; or
732	732	(2) of the protest under Section 41.411 of the failure
733	733	of the chief appraiser or appraisal review board to provide or
734	734	deliver a notice to which the property owner is entitled, and, if
735	735	failure to provide or deliver the notice is established, of a
736	736	protest made by the property owner on any other grounds of protest
737	737	authorized by this title relating to the property to which the
738	738	notice applies.
739	739	(c) A property owner who establishes that the appraisal
740	740	review board had jurisdiction to issue a final determination of the
741	741	protest by the property owner under Subchapter C, Chapter 41, or of
742	742	the motion filed by the property owner under Section 25.25 in an
743	743	appeal under Subsection (a)(4) [(a)(1)(E)] of this section is
744	744	entitled to a final determination by the court of the protest under
745	745	Subchapter C, Chapter 41, or of the motion filed under Section
746	746	25.25. A final determination of a protest under Subchapter C,
747	747	Chapter 41, by the court under this subsection may be on any ground
748	748	of protest authorized by this title applicable to the property that
749	749	is the subject of the protest, regardless of whether the property
750	750	owner included the ground in the property owner's notice of
751	751	protest.
752	752	SECTION 36. Section 42.21(b), Tax Code, is amended to read
753	753	as follows:
754	754	(b) A petition for review brought under Section 42.02 must
755	755	be brought against the owner of the property involved in the appeal.
756	756	A petition for review brought under Section 42.031 must be brought
757	757	against the appraisal district and against the owner of the
758	758	property involved in the appeal. [A petition for review brought
759	759	under Section 42.01(a)(2) or 42.03 must be brought against the
760	760	comptroller.] Any other petition for review under this chapter
761	761	must be brought against the appraisal district. A petition for
762	762	review may not be brought against the appraisal review board. An
763	763	appraisal district may hire an attorney that represents the
764	764	district to represent the appraisal review board established for
765	765	the district to file an answer and obtain a dismissal of a suit
766	766	filed against the appraisal review board in violation of this
767	767	subsection.
768	768	SECTION 37. Section 42.22, Tax Code, as amended by Chapters
769	769	667 (S.B. 548) and 1033 (H.B. 301), Acts of the 73rd Legislature,
770	770	Regular Session, 1993, is reenacted and amended to read as follows:
771	771	Sec. 42.22. VENUE. (a) Except as provided by Subsection
772	772	[Subsections] (b) of this section [and (c),] and by Section 42.221,
773	773	venue is in the county in which the appraisal review board that
774	774	issued the order appealed is located.
775	775	(b) Venue of an action brought under Section 42.01(a)
776	776	[42.01(1)] is in the county in which the property is located or in
777	777	the county in which the appraisal review board that issued the order
778	778	is located.
779	779	[(c) Venue is in Travis County if the order appealed was
780	780	issued by the comptroller.]
781	781	SECTION 38. Sections 151.356(a) and (c), Tax Code, are
782	782	amended to read as follows:
783	783	(a) In this section:
784	784	(1) "Environmental protection agency of the United
785	785	States" includes:
786	786	(A) the United States Department of the Interior
787	787	and any agency, bureau, or other entity established in that
788	788	department, including the Bureau of Safety and Environmental
789	789	Enforcement and the Bureau of Ocean Energy Management; and
790	790	(B) any other department, agency, bureau, or
791	791	entity of the United States that prescribes rules or regulations
792	792	described by Subdivision (3)(A).
793	793	(2) "Offshore[, "offshore] spill response containment
794	794	property" means tangible personal property:
795	795	(A) used, constructed, acquired, stored, or
796	796	installed solely as part of, or used solely for the development,
797	797	improvement, storage, deployment, repair, maintenance, or testing
798	798	of, an offshore spill response containment system that is stored
799	799	while not in use in a county bordering on the Gulf of Mexico or on a
800	800	bay or other body of water immediately adjacent to the Gulf of
801	801	Mexico [(1) described by Section 11.271(c)];
802	802	(B) [(2)] owned or leased by an entity formed
803	803	primarily for the purpose of designing, developing, modifying,
804	804	enhancing, assembling, operating, deploying, and maintaining an
805	805	offshore spill response containment system [described by Section
806	806	11.271(f)]; and
807	807	(C) [(3)] used or intended to be used solely in
808	808	an offshore spill response containment system [as defined by
809	809	Section 11.271(a)].
810	810	(3) "Offshore spill response containment system"
811	811	means a marine or mobile containment system that:
812	812	(A) is designed and used or intended to be used
813	813	solely to implement a response plan that meets or exceeds rules or
814	814	regulations adopted by any environmental protection agency of the
815	815	United States, this state, or a political subdivision of this state
816	816	for the control, reduction, or monitoring of air, water, or land
817	817	pollution in the event of a blowout or loss of control of an
818	818	offshore well drilled or used for the exploration for or production
819	819	of oil or gas;
820	820	(B) has a design capability to respond to a
821	821	blowout or loss of control of an offshore well drilled or used for
822	822	the exploration for or production of oil or gas that is drilled in
823	823	more than 5,000 feet of water;
824	824	(C) is used or intended to be used solely to
825	825	respond to a blowout or loss of control of an offshore well drilled
826	826	or used for the exploration for or production of oil or gas without
827	827	regard to the depth of the water in which the well is drilled; and
828	828	(D) except for any monitoring function for which
829	829	the system may be used, is used or intended to be used as a temporary
830	830	measure to address fugitive oil, gas, sulfur, or other minerals
831	831	after a leak has occurred and is not used or intended to be used
832	832	after the leak has been contained as a continuing means of producing
833	833	oil, gas, sulfur, or other minerals.
834	834	(4) "Rules or regulations adopted by any environmental
835	835	protection agency of the United States" includes 30 C.F.R. Part 254
836	836	and any corresponding provision or provisions of succeeding,
837	837	similar, substitute, proposed, or final federal regulations.
838	838	(c) The sale, lease, rental, storage, use, or other
839	839	consumption by an entity described by Subsection (a)(2)(B) [Section
840	840	11.271(f)] of offshore spill response containment property used
841	841	solely for the purposes described by [Section 11.271(c) and] this
842	842	section is exempted from the taxes imposed by this chapter.
843	843	SECTION 39. Section 312.0021(b), Tax Code, is amended to
844	844	read as follows:
845	845	(b) Notwithstanding any other provision of this chapter, an
846	846	owner or lessee of a parcel of real property that is located wholly
847	847	or partly in a reinvestment zone may not receive an exemption from
848	848	taxation of any portion of the value of the parcel of real property
849	849	[or of tangible personal property located on the parcel of real
850	850	property] under a tax abatement agreement under this chapter that
851	851	is entered into on or after September 1, 2017, if, on or after that
852	852	date, a wind-powered energy device is installed or constructed on
853	853	the same parcel of real property at a location that is within 25
854	854	nautical miles of the boundaries of a military aviation facility
855	855	located in this state. The prohibition provided by this section
856	856	applies regardless of whether the wind-powered energy device is
857	857	installed or constructed at a location that is in the reinvestment
858	858	zone.
859	859	SECTION 40. Section 312.007(a), Tax Code, is amended to
860	860	read as follows:
861	861	(a) In this section, "abatement period" means the period
862	862	during which all or a portion of the value of real property [or
863	863	tangible personal property] that is the subject of a tax abatement
864	864	agreement is exempt from taxation.
865	865	SECTION 41. Sections 312.204(a), (e), and (g), Tax Code,
866	866	are amended to read as follows:
867	867	(a) The governing body of a municipality eligible to enter
868	868	into tax abatement agreements under Section 312.002 may agree in
869	869	writing with the owner of taxable real property that is located in a
870	870	reinvestment zone, but that is not in an improvement project
871	871	financed by tax increment bonds, to exempt from taxation a portion
872	872	of the value of the real property [or of tangible personal property
873	873	located on the real property, or both,] for a period not to exceed
874	874	10 years, on the condition that the owner of the property make
875	875	specific improvements or repairs to the property. The governing
876	876	body of an eligible municipality may agree in writing with the owner
877	877	of a leasehold interest in tax-exempt real property that is located
878	878	in a reinvestment zone, but that is not in an improvement project
879	879	financed by tax increment bonds, to exempt a portion of the value of
880	880	property subject to ad valorem taxation, including the leasehold
881	881	interest or [,] improvements [, or tangible personal property]
882	882	located on the real property, for a period not to exceed 10 years,
883	883	on the condition that the owner of the leasehold interest make
884	884	specific improvements or repairs to the real property. A tax
885	885	abatement agreement under this section is subject to the rights of
886	886	holders of outstanding bonds of the municipality. An agreement
887	887	exempting taxable real property or leasehold interests or
888	888	improvements on tax-exempt real property may provide for the
889	889	exemption of such taxable interests in each year covered by the
890	890	agreement only to the extent its value for that year exceeds its
891	891	value for the year in which the agreement is executed. [An
892	892	agreement exempting tangible personal property located on taxable
893	893	or tax-exempt real property may provide for the exemption of
894	894	tangible personal property located on the real property in each
895	895	year covered by the agreement other than tangible personal property
896	896	that was located on the real property at any time before the period
897	897	covered by the agreement with the municipality, including inventory
898	898	and supplies.] In a municipality that has a comprehensive zoning
899	899	ordinance, an improvement, repair, development, or redevelopment
900	900	taking place under an agreement under this section must conform to
901	901	the comprehensive zoning ordinance.
902	902	(e) The governing body of a municipality eligible to enter
903	903	into tax abatement agreements under Section 312.002 may agree in
904	904	writing with the owner or lessee of real property that is located in
905	905	a reinvestment zone to exempt from taxation for a period not to
906	906	exceed 10 years a portion of the value of the real property [or of
907	907	personal property, or both,] located within the zone and owned or
908	908	leased by a certificated air carrier, on the condition that the
909	909	certificated air carrier make specific real property improvements
910	910	or lease for a term of 10 years or more real property improvements
911	911	located within the reinvestment zone. An agreement may provide for
912	912	the exemption of the real property in each year covered by the
913	913	agreement to the extent its value for that year exceeds its value
914	914	for the year in which the agreement is executed. [An agreement may
915	915	provide for the exemption of the personal property owned or leased
916	916	by a certificated air carrier located within the reinvestment zone
917	917	in each year covered by the agreement other than specific personal
918	918	property that was located within the reinvestment zone at any time
919	919	before the period covered by the agreement with the municipality.]
920	920	(g) Notwithstanding the other provisions of this chapter,
921	921	the governing body of a municipality eligible to enter into tax
922	922	abatement agreements under Section 312.002 may agree in writing
923	923	with the owner of real property that is located in a reinvestment
924	924	zone to exempt from taxation for a period not to exceed five years a
925	925	portion of the value of the real property [or of tangible personal
926	926	property located on the real property, or both,] that is used to
927	927	provide housing for military personnel employed at a military
928	928	facility located in or near the municipality. An agreement may
929	929	provide for the exemption of the real property in each year covered
930	930	by the agreement only to the extent its value for that year exceeds
931	931	its value for the year in which the agreement is executed. [An
932	932	agreement may provide for the exemption of tangible personal
933	933	property located on the real property in each year covered by the
934	934	agreement other than tangible personal property that was located on
935	935	the real property at any time before the period covered by the
936	936	agreement with the municipality and other than inventory or
937	937	supplies.] The governing body of the municipality may adopt
938	938	guidelines and criteria for tax abatement agreements entered into
939	939	under this subsection that are different from the guidelines and
940	940	criteria that apply to tax abatement agreements entered into under
941	941	another provision of this section. Tax abatement agreements
942	942	entered into under this subsection are not required to contain
943	943	identical terms for the portion of the value of the property that is
944	944	to be exempt or for the duration of the exemption as tax abatement
945	945	agreements entered into with the owners of property in the
946	946	reinvestment zone under another provision of this section.
947	947	SECTION 42. Section 312.210(b), Tax Code, is amended to
948	948	read as follows:
949	949	(b) A tax abatement agreement with the owner of real
950	950	property [or tangible personal property] that is located in the
951	951	reinvestment zone described by Subsection (a) and in a school
952	952	district that has a local revenue level that does not exceed the
953	953	level established under Section 48.257, Education Code, must exempt
954	954	from taxation:
955	955	(1) the portion of the value of the property in the
956	956	amount specified in the joint agreement among the municipality,
957	957	county, and junior college district; and
958	958	(2) an amount equal to 10 percent of the maximum
959	959	portion of the value of the property that may under Section
960	960	312.204(a) be otherwise exempted from taxation.
961	961	SECTION 43. Section 312.211(a), Tax Code, is amended to
962	962	read as follows:
963	963	(a) This section applies only to [:
964	964	[(1)] real property:
965	965	(1) [(A)] that is located in a reinvestment zone;
966	966	(2) [(B)] that is not in an improvement project
967	967	financed by tax increment bonds; and
968	968	(3) [(C)] that is the subject of a voluntary cleanup
969	969	agreement under Section 361.606, Health and Safety Code [; and
970	970	[(2) tangible personal property located on the real
971	971	property].
972	972	SECTION 44. Sections 312.402(a), (a-1), and (a-3), Tax
973	973	Code, are amended to read as follows:
974	974	(a) The commissioners court may execute a tax abatement
975	975	agreement with the owner of taxable real property located in a
976	976	reinvestment zone designated under this subchapter [or with the
977	977	owner of tangible personal property located on real property in a
978	978	reinvestment zone] to exempt from taxation all or a portion of the
979	979	value of the real property [, all or a portion of the value of the
980	980	tangible personal property located on the real property, or all or a
981	981	portion of the value of both].
982	982	(a-1) The commissioners court may execute a tax abatement
983	983	agreement with the owner of a leasehold interest in tax-exempt real
984	984	property located in a reinvestment zone designated under this
985	985	subchapter to exempt all or a portion of the value of the leasehold
986	986	interest in the real property. The court may execute a tax
987	987	abatement agreement with the owner of [tangible personal property
988	988	or] an improvement located on tax-exempt real property that is
989	989	located in a designated reinvestment zone to exempt all or a portion
990	990	of the value of the [tangible personal property or] improvement
991	991	located on the real property.
992	992	(a-3) The commissioners court may execute a tax abatement
993	993	agreement with a lessee of taxable real property located in a
994	994	reinvestment zone designated under this subchapter to exempt from
995	995	taxation all or a portion of the value of the fixtures,
996	996	improvements, or other real property owned by the lessee and
997	997	located on the property that is subject to the lease [, all or a
998	998	portion of the value of tangible personal property owned by the
999	999	lessee and located on the real property that is the subject of the
1000	1000	lease, or all or a portion of the value of both the fixtures,
1001	1001	improvements, or other real property and the tangible personal
1002	1002	property described by this subsection].
1003	1003	SECTION 45. Section 71.041(5), Agriculture Code, is amended
1004	1004	to read as follows:
1005	1005	(5) "Nursery stock weather protection unit" means a
1006	1006	plant cover consisting of a series of removable, portable metal
1007	1007	hoops, covered by nonreusable plastic sheeting, shade cloth, or
1008	1008	other similar removable material, used exclusively for protecting
1009	1009	nursery products from weather elements. A nursery stock weather
1010	1010	protection unit is an implement of husbandry for all purposes[,
1011	1011	including Article VIII, Section 19a, of the Texas Constitution].
1012	1012	SECTION 46. Section 93.001(2), Business & Commerce Code, is
1013	1013	amended to read as follows:
1014	1014	(2) "Heavy equipment" means self-propelled,
1015	1015	self-powered, or pull-type equipment, including farm equipment or a
1016	1016	diesel engine, that weighs at least 1,500 pounds and is intended to
1017	1017	be used for agricultural, construction, industrial, maritime,
1018	1018	mining, or forestry uses. The term does not include a motor
1019	1019	vehicle that is required by:
1020	1020	(A) Chapter 501, Transportation Code, to be
1021	1021	titled; or
1022	1022	(B) Chapter 502, Transportation Code, to be
1023	1023	registered [has the meaning assigned by Section 23.1241, Tax Code].
1024	1024	SECTION 47. Sections 89.003(a) and (b), Finance Code, are
1025	1025	amended to read as follows:
1026	1026	(a) Each association and each federal association shall
1027	1027	render for ad valorem taxation all of its personal property, other
1028	1028	than tangible personal property [furniture, fixtures, equipment,
1029	1029	and automobiles], as a whole at the value remaining after deducting
1030	1030	the following from the total value of its entire assets:
1031	1031	(1) all debts that it owes;
1032	1032	(2) all tax-free securities that it owns;
1033	1033	(3) its loss reserves and surplus;
1034	1034	(4) its savings liability; [and]
1035	1035	(5) the appraised value of its [furniture, fixtures,
1036	1036	and] real property; and
1037	1037	(6) the value of its tangible personal property.
1038	1038	(b) The association or federal association shall render the
1039	1039	personal property, other than tangible personal property
1040	1040	[furniture, fixtures, equipment, and automobiles], to the chief
1041	1041	appraiser of the appraisal district in the county in which its
1042	1042	principal office is located.
1043	1043	SECTION 48. Sections 403.302(d) and (i), Government Code,
1044	1044	are amended to read as follows:
1045	1045	(d) For the purposes of this section, "taxable value" means
1046	1046	the market value of all taxable property less:
1047	1047	(1) the total dollar amount of any residence homestead
1048	1048	exemptions lawfully granted under Section 11.13(b) or (c), Tax
1049	1049	Code, in the year that is the subject of the study for each school
1050	1050	district;
1051	1051	(2) one-half of the total dollar amount of any
1052	1052	residence homestead exemptions granted under Section 11.13(n), Tax
1053	1053	Code, in the year that is the subject of the study for each school
1054	1054	district;
1055	1055	(3) the total dollar amount of any exemptions granted
1056	1056	before May 31, 1993, within a reinvestment zone under agreements
1057	1057	authorized by Chapter 312, Tax Code;
1058	1058	(4) subject to Subsection (e), the total dollar amount
1059	1059	of any captured appraised value of property that:
1060	1060	(A) is within a reinvestment zone created on or
1061	1061	before May 31, 1999, or is proposed to be included within the
1062	1062	boundaries of a reinvestment zone as the boundaries of the zone and
1063	1063	the proposed portion of tax increment paid into the tax increment
1064	1064	fund by a school district are described in a written notification
1065	1065	provided by the municipality or the board of directors of the zone
1066	1066	to the governing bodies of the other taxing units in the manner
1067	1067	provided by former Section 311.003(e), Tax Code, before May 31,
1068	1068	1999, and within the boundaries of the zone as those boundaries
1069	1069	existed on September 1, 1999, including subsequent improvements to
1070	1070	the property regardless of when made;
1071	1071	(B) generates taxes paid into a tax increment
1072	1072	fund created under Chapter 311, Tax Code, under a reinvestment zone
1073	1073	financing plan approved under Section 311.011(d), Tax Code, on or
1074	1074	before September 1, 1999; and
1075	1075	(C) is eligible for tax increment financing under
1076	1076	Chapter 311, Tax Code;
1077	1077	(5) the total dollar amount of any captured appraised
1078	1078	value of property that:
1079	1079	(A) is within a reinvestment zone:
1080	1080	(i) created on or before December 31, 2008,
1081	1081	by a municipality with a population of less than 18,000; and
1082	1082	(ii) the project plan for which includes
1083	1083	the alteration, remodeling, repair, or reconstruction of a
1084	1084	structure that is included on the National Register of Historic
1085	1085	Places and requires that a portion of the tax increment of the zone
1086	1086	be used for the improvement or construction of related facilities
1087	1087	or for affordable housing;
1088	1088	(B) generates school district taxes that are paid
1089	1089	into a tax increment fund created under Chapter 311, Tax Code; and
1090	1090	(C) is eligible for tax increment financing under
1091	1091	Chapter 311, Tax Code;
1092	1092	(6) [the total dollar amount of any exemptions granted
1093	1093	under Section 11.251 or 11.253, Tax Code;
1094	1094	[(7)] the difference between the comptroller's
1095	1095	estimate of the market value and the productivity value of land that
1096	1096	qualifies for appraisal on the basis of its productive capacity,
1097	1097	except that the productivity value estimated by the comptroller may
1098	1098	not exceed the fair market value of the land;
1099	1099	(7) [(8)] the portion of the appraised value of
1100	1100	residence homesteads of individuals who receive a tax limitation
1101	1101	under Section 11.26, Tax Code, on which school district taxes are
1102	1102	not imposed in the year that is the subject of the study, calculated
1103	1103	as if the residence homesteads were appraised at the full value
1104	1104	required by law;
1105	1105	(8) [(9)] a portion of the market value of property
1106	1106	not otherwise fully taxable by the district at market value because
1107	1107	of action required by statute or the constitution of this state[,
1108	1108	other than Section 11.311, Tax Code,] that, if the tax rate adopted
1109	1109	by the district is applied to it, produces an amount equal to the
1110	1110	difference between the tax that the district would have imposed on
1111	1111	the property if the property were fully taxable at market value and
1112	1112	the tax that the district is actually authorized to impose on the
1113	1113	property, if this subsection does not otherwise require that
1114	1114	portion to be deducted;
1115	1115	(9) [(10) the market value of all tangible personal
1116	1116	property, other than manufactured homes, owned by a family or
1117	1117	individual and not held or used for the production of income;
1118	1118	[(11)] the appraised value of property the collection
1119	1119	of delinquent taxes on which is deferred under Section 33.06, Tax
1120	1120	Code;
1121	1121	(10) [(12)] the portion of the appraised value of
1122	1122	property the collection of delinquent taxes on which is deferred
1123	1123	under Section 33.065, Tax Code;
1124	1124	(11) [(13)] the amount by which the market value of a
1125	1125	residence homestead to which Section 23.23, Tax Code, applies
1126	1126	exceeds the appraised value of that property as calculated under
1127	1127	that section; and
1128	1128	(12) [(14)] the total dollar amount of any exemptions
1129	1129	granted under Section 11.35, Tax Code.
1130	1130	(i) If the comptroller determines in the study that the
1131	1131	market value of property in a school district as determined by the
1132	1132	appraisal district that appraises property for the school district,
1133	1133	less the total of the amounts and values listed in Subsection (d) as
1134	1134	determined by that appraisal district, is valid, the comptroller,
1135	1135	in determining the taxable value of property in the school district
1136	1136	under Subsection (d), shall for purposes of Subsection (d)(11)
1137	1137	[(d)(13)] subtract from the market value as determined by the
1138	1138	appraisal district of residence homesteads to which Section 23.23,
1139	1139	Tax Code, applies the amount by which that amount exceeds the
1140	1140	appraised value of those properties as calculated by the appraisal
1141	1141	district under Section 23.23, Tax Code. If the comptroller
1142	1142	determines in the study that the market value of property in a
1143	1143	school district as determined by the appraisal district that
1144	1144	appraises property for the school district, less the total of the
1145	1145	amounts and values listed in Subsection (d) as determined by that
1146	1146	appraisal district, is not valid, the comptroller, in determining
1147	1147	the taxable value of property in the school district under
1148	1148	Subsection (d), shall for purposes of Subsection (d)(11) [(d)(13)]
1149	1149	subtract from the market value as estimated by the comptroller of
1150	1150	residence homesteads to which Section 23.23, Tax Code, applies the
1151	1151	amount by which that amount exceeds the appraised value of those
1152	1152	properties as calculated by the appraisal district under Section
1153	1153	23.23, Tax Code.
1154	1154	SECTION 49. Section 503.038(a), Transportation Code, is
1155	1155	amended to read as follows:
1156	1156	(a) The department may cancel a dealer's general
1157	1157	distinguishing number if the dealer:
1158	1158	(1) falsifies or forges a title document, including an
1159	1159	affidavit making application for a certified copy of a title;
1160	1160	(2) files a false or forged tax document, including a
1161	1161	sales tax affidavit;
1162	1162	(3) fails to take assignment of any basic evidence of
1163	1163	ownership, including a certificate of title or manufacturer's
1164	1164	certificate, for a vehicle the dealer acquires;
1165	1165	(4) fails to assign any basic evidence of ownership,
1166	1166	including a certificate of title or manufacturer's certificate, for
1167	1167	a vehicle the dealer sells;
1168	1168	(5) uses or permits the use of a metal dealer's license
1169	1169	plate or a dealer's temporary tag on a vehicle that the dealer does
1170	1170	not own or control or that is not in stock and offered for sale;
1171	1171	(6) makes a material misrepresentation in an
1172	1172	application or other information filed with the department;
1173	1173	(7) fails to maintain the qualifications for a general
1174	1174	distinguishing number;
1175	1175	(8) fails to provide to the department within 30 days
1176	1176	after the date of demand by the department satisfactory and
1177	1177	reasonable evidence that the person is regularly and actively
1178	1178	engaged in business as a wholesale or retail dealer;
1179	1179	(9) has been licensed for at least 12 months and has
1180	1180	not assigned at least five vehicles during the previous 12-month
1181	1181	period;
1182	1182	(10) [has failed to demonstrate compliance with
1183	1183	Sections 23.12, 23.121, and 23.122, Tax Code;
1184	1184	[(11)] uses or allows the use of the dealer's general
1185	1185	distinguishing number or the location for which the general
1186	1186	distinguishing number is issued to avoid the requirements of this
1187	1187	chapter;
1188	1188	(11) [(12)] misuses or allows the misuse of a
1189	1189	temporary tag authorized under this chapter;
1190	1190	(12) [(13)] refuses to show on a buyer's temporary tag
1191	1191	the date of sale or other reasonable information required by the
1192	1192	department; or
1193	1193	(13) [(14)] otherwise violates this chapter or a rule
1194	1194	adopted under this chapter.
1195	1195	SECTION 50. (a) The following provisions of the Tax Code
1196	1196	are repealed:
1197	1197	(1) Section 6.24(c);
1198	1198	(2) Sections 11.01(c), (d), and (e);
1199	1199	(3) Section 11.11(h);
1200	1200	(4) Section 11.14;
1201	1201	(5) Section 11.141;
1202	1202	(6) Section 11.145;
1203	1203	(7) Section 11.15;
1204	1204	(8) Section 11.16;
1205	1205	(9) Section 11.161;
1206	1206	(10) Section 11.23(f);
1207	1207	(11) Section 11.25;
1208	1208	(12) Section 11.251;
1209	1209	(13) Section 11.252;
1210	1210	(14) Section 11.253;
1211	1211	(15) Section 11.254;
1212	1212	(16) Section 11.27(a-1);
1213	1213	(17) Section 11.271;
1214	1214	(18) Section 11.311;
1215	1215	(19) Section 11.315;
1216	1216	(20) Section 11.33;
1217	1217	(21) Section 11.437;
1218	1218	(22) Section 11.4391;
1219	1219	(23) Section 21.02;
1220	1220	(24) Section 21.021;
1221	1221	(25) Section 21.03;
1222	1222	(26) Section 21.031;
1223	1223	(27) Section 21.04;
1224	1224	(28) Section 21.05;
1225	1225	(29) Section 21.055;
1226	1226	(30) Section 21.07;
1227	1227	(31) Section 21.09;
1228	1228	(32) Section 21.10;
1229	1229	(33) Sections 22.01(e), (i), (j), (k), and (m);
1230	1230	(34) Sections 22.04(b), (c), and (d);
1231	1231	(35) Sections 22.07(a) and (b);
1232	1232	(36) Section 23.121;
1233	1233	(37) Section 23.1211;
1234	1234	(38) Section 23.122;
1235	1235	(39) Section 23.123;
1236	1236	(40) Section 23.124;
1237	1237	(41) Section 23.1241;
1238	1238	(42) Section 23.1242;
1239	1239	(43) Section 23.1243;
1240	1240	(44) Section 23.125;
1241	1241	(45) Section 23.126;
1242	1242	(46) Section 23.127;
1243	1243	(47) Section 23.128;
1244	1244	(48) Section 23.129;
1245	1245	(49) Section 23.24;
1246	1246	(50) Chapter 24;
1247	1247	(51) Section 25.25(c-1);
1248	1248	(52) Section 33.11;
1249	1249	(53) Subchapter B, Chapter 33;
1250	1250	(54) Section 41.413(a);
1251	1251	(55) Section 41.47(c-1);
1252	1252	(56) Section 42.03; and
1253	1253	(57) Section 42.05.
1254	1254	(b) Sections 49.302(b) and 49.304, Education Code, are
1255	1255	repealed.
1256	1256	(c) Section 89.003(c), Finance Code, is repealed.
1257	1257	(d) Sections 379B.011(c), (d), and (e), Local Government
1258	1258	Code, are repealed.
1259	1259	SECTION 51. Sections 23.121, 23.122, 23.123, 23.124,
1260	1260	23.125, 23.126, 23.127, and 23.128, Tax Code, as repealed by this
1261	1261	Act, apply only to an offense committed before the effective date of
1262	1262	this Act. An offense committed before the effective date of this Act
1263	1263	is governed by the law in effect on the date the offense was
1264	1264	committed, and the former law is continued in effect for that
1265	1265	purpose. For purposes of this subsection, an offense was committed
1266	1266	before the effective date of this Act if any element of the offense
1267	1267	occurred before that date.
1268	1268	SECTION 52. The changes made to Section 25.25, Tax Code, by
1269	1269	this Act apply only to a motion to correct an appraisal roll filed
1270	1270	on or after the effective date of this Act. A motion to correct an
1271	1271	appraisal roll filed before the effective date of this Act is
1272	1272	governed by the law in effect on the date the motion was filed, and
1273	1273	the former law is continued in effect for that purpose.
1274	1274	SECTION 53. Sections 403.302(d) and (i), Government Code, as
1275	1275	amended by this Act, apply only to the determination of the total
1276	1276	taxable value of property in a school district for a tax year that
1277	1277	begins on or after the effective date of this Act. The determination
1278	1278	of the total taxable value of property in a school district for a
1279	1279	tax year that begins before the effective date of this Act is
1280	1280	governed by the law in effect immediately before that date, and the
1281	1281	former law is continued in effect for that purpose.
1282	1282	SECTION 54. Notwithstanding the changes in law made by this
1283	1283	Act to the provisions of the Tax Code, Agriculture Code, Business &
1284	1284	Commerce Code, Finance Code, and Transportation Code amended by
1285	1285	this Act and the repeal by this Act of provisions of the Tax Code and
1286	1286	Finance Code, each of those provisions, as it existed immediately
1287	1287	before January 1, 2024, is continued in effect for the purpose of
1288	1288	the levy and collection of an ad valorem tax on tangible personal
1289	1289	property imposed:
1290	1290	(1) before January 1, 2024; or
1291	1291	(2) pursuant to Section 1(b-1), Article VIII, Texas
1292	1292	Constitution.
1293	1293	SECTION 55. This Act takes effect January 1, 2024, but only
1294	1294	if the constitutional amendment proposed by the 88th Legislature,
1295	1295	Regular Session, 2023, exempting tangible personal property from ad
1296	1296	valorem taxation is approved by the voters. If that amendment is
1297	1297	not approved by the voters, this Act has no effect.