Texas 2023 - 88th Regular

Texas Senate Bill SB2289 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	S.B. No. 2289
2	2
3	3
4	4	AN ACT
5	5	relating to the exemption from ad valorem taxation of equipment or
6	6	inventory held by a manufacturer of medical or biomedical products
7	7	to protect the Texas healthcare network and strengthen our medical
8	8	supply chain.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
11	11	adding Section 11.36 to read as follows:
12	12	Sec. 11.36. MEDICAL OR BIOMEDICAL PROPERTY. (a) In this
13	13	section:
14	14	(1) "Medical or biomedical property" means tangible
15	15	personal property that is:
16	16	(A) stored, used, or consumed in the
17	17	manufacturing or processing of medical or biomedical products by a
18	18	medical or biomedical manufacturer; or
19	19	(B) intended for use in the diagnosis, cure,
20	20	mitigation, treatment, or prevention of a condition or disease or
21	21	in medical or biomedical research, including the invention,
22	22	development, and dissemination of materials, tools, technologies,
23	23	processes, and similar means for translating and applying medical
24	24	and scientific research for practical applications to advance
25	25	public health, including:
26	26	(i) devices;
27	27	(ii) therapeutics;
28	28	(iii) pharmaceuticals;
29	29	(iv) personal protective equipment;
30	30	(v) tools, apparatuses, instruments,
31	31	implants, or other similar or related component parts or
32	32	accessories;
33	33	(vi) property exempted under Section
34	34	151.318 from the taxes imposed by Chapter 151; and
35	35	(vii) manufacturing inventories, including
36	36	finished goods.
37	37	(2) "Medical or biomedical manufacturing facility"
38	38	means a facility at which a person conducts manufacturing or
39	39	processing of medical or biomedical products for the purpose of
40	40	development and commercialization of products to advance public
41	41	health.
42	42	(b) A person is entitled to an exemption from taxation of
43	43	medical or biomedical property the person owns or leases that is
44	44	located in a medical or biomedical manufacturing facility that the
45	45	person owns or leases.
46	46	(c) Notwithstanding Section 11.14(c), the governing body of
47	47	a taxing unit may not provide for taxation of medical or biomedical
48	48	property exempted under this section.
49	49	SECTION 2. Section 11.42(d), Tax Code, is amended to read as
50	50	follows:
51	51	(d) A person who acquires property after January 1 of a tax
52	52	year may receive an exemption authorized by Section 11.17, 11.18,
53	53	11.19, 11.20, 11.21, 11.23, 11.231, [or] 11.30, or 11.36 for the
54	54	applicable portion of that tax year immediately on qualification
55	55	for the exemption.
56	56	SECTION 3. Section 11.43(c), Tax Code, is amended to read as
57	57	follows:
58	58	(c) An exemption provided by Section 11.13, 11.131, 11.132,
59	59	11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
60	60	11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
61	61	11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, [or] 11.35, or
62	62	11.36, once allowed, need not be claimed in subsequent years, and
63	63	except as otherwise provided by Subsection (e), the exemption
64	64	applies to the property until it changes ownership or the person's
65	65	qualification for the exemption changes. However, except as
66	66	provided by Subsection (r), the chief appraiser may require a
67	67	person allowed one of the exemptions in a prior year to file a new
68	68	application to confirm the person's current qualification for the
69	69	exemption by delivering a written notice that a new application is
70	70	required, accompanied by an appropriate application form, to the
71	71	person previously allowed the exemption. If the person previously
72	72	allowed the exemption is 65 years of age or older, the chief
73	73	appraiser may not cancel the exemption due to the person's failure
74	74	to file the new application unless the chief appraiser complies
75	75	with the requirements of Subsection (q), if applicable.
76	76	SECTION 4. This Act applies only to a tax year that begins
77	77	on or after the effective date of this Act.
78	78	SECTION 5. This Act takes effect January 1, 2024, but only
79	79	if the constitutional amendment proposed by the 88th Legislature,
80	80	Regular Session, 2023, to authorize the legislature to exempt from
81	81	ad valorem taxation equipment or inventory held by a manufacturer
82	82	of medical or biomedical products to protect the Texas healthcare
83	83	network and strengthen our medical supply chain is approved by the
84	84	voters. If that amendment is not approved by the voters, this Act
85	85	has no effect.
86	86	______________________________ ______________________________
87	87	President of the Senate Speaker of the House
88	88	I hereby certify that S.B. No. 2289 passed the Senate on
89	89	April 13, 2023, by the following vote: Yeas 26, Nays 4.
90	90	______________________________
91	91	Secretary of the Senate
92	92	I hereby certify that S.B. No. 2289 passed the House on
93	93	May 18, 2023, by the following vote: Yeas 132, Nays 12, one
94	94	present not voting.
95	95	______________________________
96	96	Chief Clerk of the House
97	97	Approved:
98	98	______________________________
99	99	Date
100	100	______________________________
101	101	Governor