88R7058 DRS-F
By: Bonnen H.B. No. 4901
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of certain
tangible personal property held by a manufacturer of medical or
biomedical products as a finished good or used in the manufacturing
or processing of medical or biomedical products.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.36 to read as follows:
Sec. 11.36. MEDICAL OR BIOMEDICAL PROPERTY. (a) In this
section:
(1) "Medical or biomedical property" means tangible
personal property that is:
(A) stored, used, or consumed in the
manufacturing or processing of medical or biomedical products by a
medical or biomedical manufacturer; or
(B) intended for use in the diagnosis, cure,
mitigation, treatment, or prevention of a condition or disease or
in medical or biomedical research, including the invention,
development, and dissemination of materials, tools, technologies,
processes, and similar means for translating and applying medical
and scientific research for practical applications to advance
public health, including:
(i) devices;
(ii) therapeutics;
(iii) pharmaceuticals;
(iv) personal protective equipment;
(v) tools, apparatuses, instruments,
implants, or other similar or related component parts or
accessories;
(vi) property exempted under Section
151.318 from the taxes imposed by Chapter 151; and
(vii) manufacturing inventories, including
finished goods.
(2) "Medical or biomedical manufacturing facility"
means a facility at which a person conducts manufacturing or
processing of medical or biomedical products for the purpose of
development and commercialization of products to advance public
health.
(b) A person is entitled to an exemption from taxation of
medical or biomedical property the person owns or leases that is
located in a medical or biomedical manufacturing facility that the
person owns or leases.
(c) Notwithstanding Section 11.14(c), the governing body of
a taxing unit may not provide for taxation of medical or biomedical
property exempted under this section.
SECTION 2. Section 11.42(d), Tax Code, is amended to read as
follows:
(d) A person who acquires property after January 1 of a tax
year may receive an exemption authorized by Section 11.17, 11.18,
11.19, 11.20, 11.21, 11.23, 11.231, [or] 11.30, or 11.36 for the
applicable portion of that tax year immediately on qualification
for the exemption.
SECTION 3. Section 11.43(c), Tax Code, is amended to read as
follows:
(c) An exemption provided by Section 11.13, 11.131, 11.132,
11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, [or] 11.35, or
11.36, once allowed, need not be claimed in subsequent years, and
except as otherwise provided by Subsection (e), the exemption
applies to the property until it changes ownership or the person's
qualification for the exemption changes. However, except as
provided by Subsection (r), the chief appraiser may require a
person allowed one of the exemptions in a prior year to file a new
application to confirm the person's current qualification for the
exemption by delivering a written notice that a new application is
required, accompanied by an appropriate application form, to the
person previously allowed the exemption. If the person previously
allowed the exemption is 65 years of age or older, the chief
appraiser may not cancel the exemption due to the person's failure
to file the new application unless the chief appraiser complies
with the requirements of Subsection (q), if applicable.
SECTION 4. This Act applies only to a tax year that begins
on or after the effective date of this Act.
SECTION 5. This Act takes effect January 1, 2024, but only
if the constitutional amendment proposed by the 88th Legislature,
Regular Session, 2023, to authorize the legislature to exempt from
ad valorem taxation certain tangible personal property held by a
manufacturer of medical or biomedical products as a finished good
or used in the manufacturing or processing of medical or biomedical
products is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.