Texas 2023 - 88th Regular

Texas Senate Bill SB1439 Compare Versions

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Version 2 (New)

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1	1	S.B. No. 1439
2	2
3	3
4	4	AN ACT
5	5	relating to the ad valorem taxation of tangible personal property
6	6	held or used for the production of income by related business
7	7	entities.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 11.145, Tax Code, is amended to read as
10	10	follows:
11	11	Sec. 11.145. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY
12	12	HAVING VALUE OF LESS THAN $2,500. (a) In this section:
13	13	(1) "Related business entity" means a business entity
14	14	that:
15	15	(A) engages in a common business enterprise with
16	16	at least one other business entity; and
17	17	(B) owns tangible personal property that:
18	18	(i) is held or used for the production of
19	19	income as part of the common business enterprise; and
20	20	(ii) is located at the same physical
21	21	address that tangible personal property owned by at least one other
22	22	business entity engaged in the common business enterprise is
23	23	located.
24	24	(2) "Unified business enterprise" means a common
25	25	business enterprise composed of more than one related business
26	26	entity.
27	27	(b) Subject to Subsection (d), a [A] person is entitled to
28	28	an exemption from taxation of the tangible personal property the
29	29	person owns that is held or used for the production of income if
30	30	that property has a taxable value of less than $2,500.
31	31	(c) [(b)] The exemption provided by Subsection (b) [(a)]
32	32	applies to each separate taxing unit in which a person holds or uses
33	33	tangible personal property for the production of income.
34	34	(d) For[, and, for] the purpose [purposes] of Subsection (b)
35	35	[(a)], all property described by that subsection in a [each] taxing
36	36	unit that is owned by a person is:
37	37	(1) aggregated to determine taxable value; and
38	38	(2) if the person is a related business entity,
39	39	aggregated with the property described by that subsection in the
40	40	taxing unit that is owned by each other related business enterprise
41	41	that composes the same unified business enterprise to determine
42	42	taxable value for the entity.
43	43	(e) A chief appraiser may investigate a business entity to
44	44	determine whether the entity:
45	45	(1) is a related business entity; and
46	46	(2) has aggregated tangible personal property as
47	47	provided by Subsection (d)(2).
48	48	SECTION 2. Section 22.01, Tax Code, is amended by amending
49	49	Subsections (a), (c-1), and (f) and adding Subsection (n) to read as
50	50	follows:
51	51	(a) Except as provided by Chapter 24, a person shall render
52	52	for taxation all tangible personal property used for the production
53	53	of income that the person owns or that the person manages and
54	54	controls as a fiduciary on January 1. A rendition statement shall
55	55	contain:
56	56	(1) the name and address of the property owner;
57	57	(2) a description of the property by type or category;
58	58	(3) if the property is inventory, a description of
59	59	each type of inventory and a general estimate of the quantity of
60	60	each type of inventory;
61	61	(4) the physical address [location] or taxable situs
62	62	of the property; and
63	63	(5) the property owner's good faith estimate of the
64	64	market value of the property or, at the option of the property
65	65	owner, the historical cost when new and the year of acquisition of
66	66	the property.
67	67	(c-1) In this section:
68	68	(1) "Related business entity" and "unified business
69	69	enterprise" have the meanings assigned by Section 11.145.
70	70	(2) "Secured party" has the meaning assigned by
71	71	Section 9.102, Business & Commerce Code.
72	72	(3) [(2)] "Security interest" has the meaning
73	73	assigned by Section 1.201, Business & Commerce Code.
74	74	(f) Notwithstanding Subsections (a) and (b), a rendition
75	75	statement of a person who owns tangible personal property used for
76	76	the production of income located in the appraisal district that, in
77	77	the owner's opinion, has an aggregate value of less than $20,000 is
78	78	required to contain only:
79	79	(1) the name and address of the property owner;
80	80	(2) a general description of the property by type or
81	81	category; and
82	82	(3) the physical address [location] or taxable situs
83	83	of the property.
84	84	(n) A rendition statement of a related business entity must
85	85	contain the information required by Subsection (a) or (f), as
86	86	applicable, stated for each related business entity that composes
87	87	the unified business enterprise of which the related business
88	88	entity that is the subject of the rendition is a part.
89	89	SECTION 3. Section 22.24(c), Tax Code, is amended to read as
90	90	follows:
91	91	(c) The comptroller may prescribe or approve different
92	92	forms for different kinds of property but shall ensure that each
93	93	form requires a property owner to furnish the information necessary
94	94	to identify the property and to determine its ownership,
95	95	taxability, and situs. Each form must include a box that the
96	96	property owner may check to permit the property owner to affirm that
97	97	the information contained in the most recent rendition statement
98	98	filed by the property owner in a prior tax year is accurate with
99	99	respect to the current tax year in accordance with Section
100	100	22.01(l). Each form must include a box that a property owner that is
101	101	a related business entity, as defined by Section 11.145, must check
102	102	to identify the owner as a related business entity. A form may not
103	103	require but may permit a property owner to furnish information not
104	104	specifically required by this chapter to be reported. In addition,
105	105	a form prescribed or approved under this subsection must contain
106	106	the following statement in bold type: "If you make a false statement
107	107	on this form, you could be found guilty of a Class A misdemeanor or a
108	108	state jail felony under Section 37.10, Penal Code."
109	109	SECTION 4. The changes in law made by this Act apply only to
110	110	an ad valorem tax year that begins on or after the effective date of
111	111	this Act.
112	112	SECTION 5. This Act takes effect January 1, 2024.
113	113	______________________________ ______________________________
114	114	President of the Senate Speaker of the House
115	115	I hereby certify that S.B. No. 1439 passed the Senate on
116	116	April 12, 2023, by the following vote: Yeas 29, Nays 2.
117	117	______________________________
118	118	Secretary of the Senate
119	119	I hereby certify that S.B. No. 1439 passed the House on
120	120	May 19, 2023, by the following vote: Yeas 139, Nays 4,
121	121	two present not voting.
122	122	______________________________
123	123	Chief Clerk of the House
124	124	Approved:
125	125	______________________________
126	126	Date
127	127	______________________________
128	128	Governor