Texas 2023 - 88th Regular

Texas House Bill HB4901 Compare Versions

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1	1	88R7058 DRS-F
2	2	By: Bonnen H.B. No. 4901
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the exemption from ad valorem taxation of certain
8	8	tangible personal property held by a manufacturer of medical or
9	9	biomedical products as a finished good or used in the manufacturing
10	10	or processing of medical or biomedical products.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
13	13	adding Section 11.36 to read as follows:
14	14	Sec. 11.36. MEDICAL OR BIOMEDICAL PROPERTY. (a) In this
15	15	section:
16	16	(1) "Medical or biomedical property" means tangible
17	17	personal property that is:
18	18	(A) stored, used, or consumed in the
19	19	manufacturing or processing of medical or biomedical products by a
20	20	medical or biomedical manufacturer; or
21	21	(B) intended for use in the diagnosis, cure,
22	22	mitigation, treatment, or prevention of a condition or disease or
23	23	in medical or biomedical research, including the invention,
24	24	development, and dissemination of materials, tools, technologies,
25	25	processes, and similar means for translating and applying medical
26	26	and scientific research for practical applications to advance
27	27	public health, including:
28	28	(i) devices;
29	29	(ii) therapeutics;
30	30	(iii) pharmaceuticals;
31	31	(iv) personal protective equipment;
32	32	(v) tools, apparatuses, instruments,
33	33	implants, or other similar or related component parts or
34	34	accessories;
35	35	(vi) property exempted under Section
36	36	151.318 from the taxes imposed by Chapter 151; and
37	37	(vii) manufacturing inventories, including
38	38	finished goods.
39	39	(2) "Medical or biomedical manufacturing facility"
40	40	means a facility at which a person conducts manufacturing or
41	41	processing of medical or biomedical products for the purpose of
42	42	development and commercialization of products to advance public
43	43	health.
44	44	(b) A person is entitled to an exemption from taxation of
45	45	medical or biomedical property the person owns or leases that is
46	46	located in a medical or biomedical manufacturing facility that the
47	47	person owns or leases.
48	48	(c) Notwithstanding Section 11.14(c), the governing body of
49	49	a taxing unit may not provide for taxation of medical or biomedical
50	50	property exempted under this section.
51	51	SECTION 2. Section 11.42(d), Tax Code, is amended to read as
52	52	follows:
53	53	(d) A person who acquires property after January 1 of a tax
54	54	year may receive an exemption authorized by Section 11.17, 11.18,
55	55	11.19, 11.20, 11.21, 11.23, 11.231, [or] 11.30, or 11.36 for the
56	56	applicable portion of that tax year immediately on qualification
57	57	for the exemption.
58	58	SECTION 3. Section 11.43(c), Tax Code, is amended to read as
59	59	follows:
60	60	(c) An exemption provided by Section 11.13, 11.131, 11.132,
61	61	11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
62	62	11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
63	63	11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, [or] 11.35, or
64	64	11.36, once allowed, need not be claimed in subsequent years, and
65	65	except as otherwise provided by Subsection (e), the exemption
66	66	applies to the property until it changes ownership or the person's
67	67	qualification for the exemption changes. However, except as
68	68	provided by Subsection (r), the chief appraiser may require a
69	69	person allowed one of the exemptions in a prior year to file a new
70	70	application to confirm the person's current qualification for the
71	71	exemption by delivering a written notice that a new application is
72	72	required, accompanied by an appropriate application form, to the
73	73	person previously allowed the exemption. If the person previously
74	74	allowed the exemption is 65 years of age or older, the chief
75	75	appraiser may not cancel the exemption due to the person's failure
76	76	to file the new application unless the chief appraiser complies
77	77	with the requirements of Subsection (q), if applicable.
78	78	SECTION 4. This Act applies only to a tax year that begins
79	79	on or after the effective date of this Act.
80	80	SECTION 5. This Act takes effect January 1, 2024, but only
81	81	if the constitutional amendment proposed by the 88th Legislature,
82	82	Regular Session, 2023, to authorize the legislature to exempt from
83	83	ad valorem taxation certain tangible personal property held by a
84	84	manufacturer of medical or biomedical products as a finished good
85	85	or used in the manufacturing or processing of medical or biomedical
86	86	products is approved by the voters. If that amendment is not
87	87	approved by the voters, this Act has no effect.