Texas 2023 - 88th Regular

Texas Senate Bill SB871 Compare Versions

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1	1	88R10543 TJB-D
2	2	By: Springer S.B. No. 871
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the exemption of inventory from ad valorem taxation.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 93.001(2), Business & Commerce Code, is
10	10	amended to read as follows:
11	11	(2) "Heavy equipment" means self-propelled,
12	12	self-powered, or pull-type equipment, including farm equipment or a
13	13	diesel engine, that weighs at least 1,500 pounds and is intended to
14	14	be used for agricultural, construction, industrial, maritime,
15	15	mining, or forestry uses. The term does not include a motor
16	16	vehicle that is required by:
17	17	(A) Chapter 501, Transportation Code, to be
18	18	titled; or
19	19	(B) Chapter 502, Transportation Code, to be
20	20	registered [has the meaning assigned by Section 23.1241, Tax Code].
21	21	SECTION 2. Section 6.24(b), Tax Code, is amended to read as
22	22	follows:
23	23	(b) The commissioners court with the approval of the county
24	24	assessor-collector may contract as provided by the Interlocal
25	25	Cooperation Act with the governing body of another taxing unit in
26	26	the county or with the board of directors of the appraisal district
27	27	for the other taxing unit or the district to perform duties relating
28	28	to the assessment or collection of taxes for the county. If a
29	29	county contracts to have its taxes assessed and collected by
30	30	another taxing unit or by the appraisal district, [except as
31	31	provided by Subsection (c),] the contract shall require the other
32	32	taxing unit or the district to assess and collect all taxes the
33	33	county is required to assess and collect.
34	34	SECTION 3. Sections 11.251(b), (c), (d), and (h), Tax Code,
35	35	are amended to read as follows:
36	36	(b) A person is entitled to an exemption from taxation by a
37	37	taxing unit of the appraised value of that portion of the person's
38	38	[inventory or] property consisting of freeport goods as determined
39	39	under this section for the taxing unit.
40	40	(c) The exemption provided by Subsection (b) is subtracted
41	41	from the market value of the [inventory or] property [determined
42	42	under Section 23.12] to determine the taxable value of the
43	43	[inventory or] property [for the taxing unit].
44	44	(d) Except as provided by Subsections (f) and (g), the chief
45	45	appraiser shall determine the appraised value of freeport goods
46	46	under this subsection. The chief appraiser shall determine the
47	47	percentage of the market value of [inventory or] property owned by
48	48	the property owner in the preceding calendar year that was
49	49	contributed by freeport goods. The chief appraiser shall apply
50	50	that percentage to the market value of the property owner's
51	51	[inventory or] property for the current year to determine the
52	52	appraised value of freeport goods for the current year.
53	53	(h) The chief appraiser by written notice delivered to a
54	54	property owner who claims an exemption under this section may
55	55	require the property owner or a person designated in writing by the
56	56	importer of record to provide copies of [inventory or] property
57	57	records in order to determine the amount and value of freeport
58	58	goods. If the property owner or designated person fails to deliver
59	59	the information requested in the notice before the 31st day after
60	60	the date the notice is delivered to the property owner or before the
61	61	date the appraisal review board approves the appraisal records
62	62	under Section 41.12, whichever is later, the property owner
63	63	forfeits the right to claim or receive the exemption for that year.
64	64	If the property owner or designated person delivers the information
65	65	requested in the notice before the date the appraisal review board
66	66	approves the appraisal records but not before the 31st day after the
67	67	date the notice is delivered to the property owner and the exemption
68	68	is allowed, the property owner is liable to each taxing unit for a
69	69	penalty in an amount equal to 10 percent of the difference between
70	70	the amount of tax imposed by the taxing unit on the [inventory or]
71	71	property and the amount that would otherwise have been imposed. The
72	72	chief appraiser shall make an entry on the appraisal records for the
73	73	[inventory or] property indicating the property owner's liability
74	74	for the penalty and shall deliver a written notice of imposition of
75	75	the penalty, explaining the reason for its imposition, to the
76	76	property owner. The assessor for a taxing unit that taxes the
77	77	[inventory or] property shall add the amount of the penalty to the
78	78	property owner's tax bill, and the tax collector for the taxing unit
79	79	shall collect the penalty at the time and in the manner the
80	80	collector collects the tax. The amount of the penalty constitutes a
81	81	lien against the [inventory or] property against which the penalty
82	82	is imposed, as if it were a tax, and accrues penalty and interest in
83	83	the same manner as a delinquent tax.
84	84	SECTION 4. Section 11.253(a)(2), Tax Code, is amended to
85	85	read as follows:
86	86	(2) "Goods-in-transit" means tangible personal
87	87	property that:
88	88	(A) is acquired in or imported into this state to
89	89	be forwarded to another location in this state or outside this
90	90	state;
91	91	(B) is stored under a contract of bailment by a
92	92	public warehouse operator at one or more public warehouse
93	93	facilities in this state that are not in any way owned or controlled
94	94	by the owner of the personal property for the account of the person
95	95	who acquired or imported the property;
96	96	(C) is transported to another location in this
97	97	state or outside this state not later than 175 days after the date
98	98	the person acquired the property in or imported the property into
99	99	this state; and
100	100	(D) does not include oil, natural gas, petroleum
101	101	products, or aircraft[, dealer's motor vehicle inventory, dealer's
102	102	vessel and outboard motor inventory, dealer's heavy equipment
103	103	inventory, or retail manufactured housing inventory].
104	104	SECTION 5. Section 11.253(c), Tax Code, is amended to read
105	105	as follows:
106	106	(c) The exemption provided by Subsection (b) is subtracted
107	107	from the market value of the property [determined under Section
108	108	23.01 or 23.12, as applicable,] to determine the taxable value of
109	109	the property.
110	110	SECTION 6. Subchapter B, Chapter 11, Tax Code, is amended by
111	111	adding Section 11.36 to read as follows:
112	112	Sec. 11.36. INVENTORY. (a) In this section, "inventory"
113	113	means:
114	114	(1) a finished good held for sale or resale;
115	115	(2) a raw or finished material held to be incorporated
116	116	into or attached to tangible personal property to create a finished
117	117	good; or
118	118	(3) residential real property that has never been
119	119	occupied as a residence and is held for sale in the ordinary course
120	120	of a trade or business, provided that the residential real property
121	121	remains unoccupied, is not leased or rented, and produces no
122	122	income.
123	123	(b) A person is entitled to an exemption from taxation by a
124	124	taxing unit of inventory owned by the person.
125	125	SECTION 7. Sections 11.4391(b), (c), and (d), Tax Code, are
126	126	amended to read as follows:
127	127	(b) If the application is approved, the property owner is
128	128	liable to each taxing unit for a penalty in an amount equal to 10
129	129	percent of the difference between the amount of tax imposed by the
130	130	taxing unit on the [inventory or] property, a portion of which
131	131	consists of freeport goods, and the amount that would otherwise
132	132	have been imposed.
133	133	(c) The chief appraiser shall make an entry on the appraisal
134	134	records for the [inventory or] property indicating the property
135	135	owner's liability for the penalty and shall deliver a written
136	136	notice of imposition of the penalty, explaining the reason for its
137	137	imposition, to the property owner.
138	138	(d) The tax assessor for a taxing unit that taxes the
139	139	[inventory or] property shall add the amount of the penalty to the
140	140	property owner's tax bill, and the tax collector for the taxing unit
141	141	shall collect the penalty at the time and in the manner the
142	142	collector collects the tax. The amount of the penalty constitutes a
143	143	lien against the [inventory or] property against which the penalty
144	144	is imposed, as if it were a tax, and accrues penalty and interest in
145	145	the same manner as a delinquent tax.
146	146	SECTION 8. Sections 22.01(a) and (g), Tax Code, are amended
147	147	to read as follows:
148	148	(a) Except as provided by Chapter 24, a person shall render
149	149	for taxation all tangible personal property used for the production
150	150	of income that the person owns or that the person manages and
151	151	controls as a fiduciary on January 1. A rendition statement shall
152	152	contain:
153	153	(1) the name and address of the property owner;
154	154	(2) a description of the property by type or category;
155	155	(3) [if the property is inventory, a description of
156	156	each type of inventory and a general estimate of the quantity of
157	157	each type of inventory;
158	158	[(4)] the physical location or taxable situs of the
159	159	property; and
160	160	(4) [(5)] the property owner's good faith estimate of
161	161	the market value of the property or, at the option of the property
162	162	owner, the historical cost when new and the year of acquisition of
163	163	the property.
164	164	(g) A person's good faith estimate of the market value of
165	165	the property under Subsection (a)(4) [(a)(5)] is solely for the
166	166	purpose of compliance with the requirement to render tangible
167	167	personal property and is inadmissible in any subsequent protest,
168	168	hearing, appeal, suit, or other proceeding under this title
169	169	involving the property, except for:
170	170	(1) a proceeding to determine whether the person
171	171	complied with this section;
172	172	(2) a proceeding under Section 22.29(b); or
173	173	(3) a protest under Section 41.41.
174	174	SECTION 9. Section 22.04(d), Tax Code, is amended to read as
175	175	follows:
176	176	(d) This section does not apply to a motor vehicle that on
177	177	January 1 is located at a place of business of a person who holds a
178	178	wholesale motor vehicle auction general distinguishing number
179	179	issued by the Texas Department of Motor Vehicles under Chapter 503,
180	180	Transportation Code, for that place of business, and that:
181	181	(1) has not acquired taxable situs under Section
182	182	21.02(a)(1) in a taxing unit that participates in the appraisal
183	183	district because the vehicle is described by Section 21.02(d);
184	184	(2) is offered for sale by a dealer who holds a
185	185	dealer's general distinguishing number issued by the Texas
186	186	Department of Motor Vehicles under Chapter 503, Transportation
187	187	Code[, and whose inventory of motor vehicles is subject to taxation
188	188	in the manner provided by Sections 23.121 and 23.122]; or
189	189	(3) is collateral possessed by a lienholder and
190	190	offered for sale in foreclosure of a security interest.
191	191	SECTION 10. Section 22.07(c), Tax Code, is amended to read
192	192	as follows:
193	193	(c) The chief appraiser may request, either in writing or by
194	194	electronic means, that the property owner provide a statement
195	195	containing supporting information indicating how the value
196	196	rendered under Section 22.01(a)(4) [22.01(a)(5)] was
197	197	determined. The statement must:
198	198	(1) summarize information sufficient to identify the
199	199	property, including:
200	200	(A) the physical and economic characteristics
201	201	relevant to the opinion of value, if appropriate; and
202	202	(B) the source of the information used;
203	203	(2) state the effective date of the opinion of value;
204	204	and
205	205	(3) explain the basis of the value rendered, which may
206	206	be the depreciation schedules used for federal income tax purposes
207	207	if [. If] the property owner is a business with 50 employees or
208	208	less[, the property owner may base the estimate of value on the
209	209	depreciation schedules used for federal income tax purposes].
210	210	SECTION 11. Sections 23.20(a), (b), and (c), Tax Code, are
211	211	amended to read as follows:
212	212	(a) A property owner [An owner of inventory or real
213	213	property] may in writing waive the right to special appraisal
214	214	provided by [Section 23.12 or] Subchapter C, D, E, F, or G as to one
215	215	or more taxing units designated in the waiver. In a tax year in
216	216	which a waiver is in effect, the property is appraised for each
217	217	taxing unit to which the waiver applies at the value determined
218	218	under Subchapter A of this chapter or the value determined under
219	219	[Section 23.12 or] Subchapter C, D, E, F, or G, whichever is the
220	220	greater value.
221	221	(b) [A waiver of the right to special appraisal provided by
222	222	Section 23.12 may be submitted at any time.] A waiver of the right
223	223	to special appraisal provided by Subchapter C, D, E, F, or G may be
224	224	submitted with an application for appraisal under that subchapter
225	225	or at any other time. A property owner who has waived special
226	226	appraisal under this section as to one or more taxing units may make
227	227	additional waivers under this section as to other taxing units in
228	228	which the property is located.
229	229	(c) A waiver under this section is effective for 25
230	230	consecutive tax years beginning on the first tax year in which the
231	231	waiver is effective without regard to whether the property is
232	232	subject to appraisal under [Section 23.12 or] Subchapter C, D, E, F,
233	233	or G. To be effective in the year in which the waiver is executed, it
234	234	must be filed before May 1 of that year with the chief appraiser of
235	235	the appraisal district in which the property is located, unless for
236	236	good cause shown the chief appraiser extends the filing deadline
237	237	for not more than 60 days. An application filed after the year's
238	238	deadline takes effect in the next tax year.
239	239	SECTION 12. The heading to Section 31.081, Tax Code, is
240	240	amended to read as follows:
241	241	Sec. 31.081. PROPERTY TAX WITHHOLDING ON PURCHASE OF
242	242	BUSINESS [OR INVENTORY].
243	243	SECTION 13. Sections 31.081(a), (f), and (g), Tax Code, are
244	244	amended to read as follows:
245	245	(a) This section applies only to a person who purchases a
246	246	business or [,] an interest in a business[, or the inventory of a
247	247	business] from a person who is liable under this title for the
248	248	payment of taxes imposed on personal property used in the operation
249	249	of that business.
250	250	(f) This section does not release a person who sells a
251	251	business [or the inventory of a business] from any personal
252	252	liability imposed on the person for the payment of taxes imposed on
253	253	the personal property of the business or for penalties or interest
254	254	on those taxes.
255	255	(g) For purposes of this section, [:
256	256	[(1)] a person is considered to have purchased a
257	257	business if the person purchases the name of the business or the
258	258	goodwill associated with the business[; and
259	259	[(2) a person is considered to have purchased the
260	260	inventory of a business if the person purchases inventory of a
261	261	business, the value of which is at least 50 percent of the value of
262	262	the total inventory of the business on the date of the purchase].
263	263	SECTION 14. Section 32.01(b), Tax Code, is amended to read
264	264	as follows:
265	265	(b) A tax lien on [inventory,] furniture, equipment, or
266	266	other personal property is a lien in solido and attaches to all
267	267	[inventory,] furniture, equipment, and other personal property
268	268	that the property owner owns on January 1 of the year the lien
269	269	attaches or that the property owner subsequently acquires.
270	270	SECTION 15. Section 41.44(a), Tax Code, is amended to read
271	271	as follows:
272	272	(a) Except as provided by Subsections (b), (c), (c-1), and
273	273	(c-2), to be entitled to a hearing and determination of a protest,
274	274	the property owner initiating the protest must file a written
275	275	notice of the protest with the appraisal review board having
276	276	authority to hear the matter protested:
277	277	(1) not later than May 15 or the 30th day after the
278	278	date that notice to the property owner was delivered to the property
279	279	owner as provided by Section 25.19, whichever is later;
280	280	(2) in the case of a protest of a change in the
281	281	appraisal records ordered as provided by Subchapter A of this
282	282	chapter or by Chapter 25, not later than the 30th day after the date
283	283	notice of the change is delivered to the property owner;
284	284	(3) in the case of a determination that a change in the
285	285	use of land appraised under Subchapter C, D, E, or H, Chapter 23,
286	286	has occurred, not later than the 30th day after the date the notice
287	287	of the determination is delivered to the property owner; or
288	288	(4) [in the case of a determination of eligibility for
289	289	a refund under Section 23.1243, not later than the 30th day after
290	290	the date the notice of the determination is delivered to the
291	291	property owner; or
292	292	[(5)] in the case of a protest of the modification or
293	293	denial of an application for an exemption under Section 11.35, or
294	294	the determination of an appropriate damage assessment rating for an
295	295	item of qualified property under that section, not later than the
296	296	30th day after the date the property owner receives the notice
297	297	required under Section 11.45(e).
298	298	SECTION 16. Sections 42.01(a) and (c), Tax Code, are
299	299	amended to read as follows:
300	300	(a) A property owner is entitled to appeal:
301	301	(1) an order of the appraisal review board
302	302	determining:
303	303	(A) a protest by the property owner as provided
304	304	by Subchapter C of Chapter 41;
305	305	(B) a motion filed under Section 25.25;
306	306	(C) that the property owner has forfeited the
307	307	right to a final determination of a motion filed under Section 25.25
308	308	or of a protest under Section 41.411 for failing to comply with the
309	309	prepayment requirements of Section 25.26 or 41.4115, as applicable;
310	310	or
311	311	(D) [eligibility for a refund requested under
312	312	Section 23.1243; or
313	313	[(E)] that the appraisal review board lacks
314	314	jurisdiction to finally determine a protest by the property owner
315	315	under Subchapter C, Chapter 41, or a motion filed by the property
316	316	owner under Section 25.25 because the property owner failed to
317	317	comply with a requirement of Subchapter C, Chapter 41, or Section
318	318	25.25, as applicable; or
319	319	(2) an order of the comptroller issued as provided by
320	320	Subchapter B, Chapter 24, apportioning among the counties the
321	321	appraised value of railroad rolling stock owned by the property
322	322	owner.
323	323	(c) A property owner who establishes that the appraisal
324	324	review board had jurisdiction to issue a final determination of the
325	325	protest by the property owner under Subchapter C, Chapter 41, or of
326	326	the motion filed by the property owner under Section 25.25 in an
327	327	appeal under Subsection (a)(1)(D) [(a)(1)(E)] of this section is
328	328	entitled to a final determination by the court of the protest under
329	329	Subchapter C, Chapter 41, or of the motion filed under Section
330	330	25.25. A final determination of a protest under Subchapter C,
331	331	Chapter 41, by the court under this subsection may be on any ground
332	332	of protest authorized by this title applicable to the property that
333	333	is the subject of the protest, regardless of whether the property
334	334	owner included the ground in the property owner's notice of
335	335	protest.
336	336	SECTION 17. Sections 312.204(a) and (g), Tax Code, are
337	337	amended to read as follows:
338	338	(a) The governing body of a municipality eligible to enter
339	339	into tax abatement agreements under Section 312.002 may agree in
340	340	writing with the owner of taxable real property that is located in a
341	341	reinvestment zone, but that is not in an improvement project
342	342	financed by tax increment bonds, to exempt from taxation a portion
343	343	of the value of the real property or of tangible personal property
344	344	located on the real property, or both, for a period not to exceed 10
345	345	years, on the condition that the owner of the property make specific
346	346	improvements or repairs to the property. The governing body of an
347	347	eligible municipality may agree in writing with the owner of a
348	348	leasehold interest in tax-exempt real property that is located in a
349	349	reinvestment zone, but that is not in an improvement project
350	350	financed by tax increment bonds, to exempt a portion of the value of
351	351	property subject to ad valorem taxation, including the leasehold
352	352	interest, improvements, or tangible personal property located on
353	353	the real property, for a period not to exceed 10 years, on the
354	354	condition that the owner of the leasehold interest make specific
355	355	improvements or repairs to the real property. A tax abatement
356	356	agreement under this section is subject to the rights of holders of
357	357	outstanding bonds of the municipality. An agreement exempting
358	358	taxable real property or leasehold interests or improvements on
359	359	tax-exempt real property may provide for the exemption of such
360	360	taxable interests in each year covered by the agreement only to the
361	361	extent its value for that year exceeds its value for the year in
362	362	which the agreement is executed. An agreement exempting tangible
363	363	personal property located on taxable or tax-exempt real property
364	364	may provide for the exemption of tangible personal property located
365	365	on the real property in each year covered by the agreement other
366	366	than tangible personal property that was located on the real
367	367	property at any time before the period covered by the agreement with
368	368	the municipality, including [inventory and] supplies. In a
369	369	municipality that has a comprehensive zoning ordinance, an
370	370	improvement, repair, development, or redevelopment taking place
371	371	under an agreement under this section must conform to the
372	372	comprehensive zoning ordinance.
373	373	(g) Notwithstanding the other provisions of this chapter,
374	374	the governing body of a municipality eligible to enter into tax
375	375	abatement agreements under Section 312.002 may agree in writing
376	376	with the owner of real property that is located in a reinvestment
377	377	zone to exempt from taxation for a period not to exceed five years a
378	378	portion of the value of the real property or of tangible personal
379	379	property located on the real property, or both, that is used to
380	380	provide housing for military personnel employed at a military
381	381	facility located in or near the municipality. An agreement may
382	382	provide for the exemption of the real property in each year covered
383	383	by the agreement only to the extent its value for that year exceeds
384	384	its value for the year in which the agreement is executed. An
385	385	agreement may provide for the exemption of tangible personal
386	386	property located on the real property in each year covered by the
387	387	agreement other than tangible personal property that was located on
388	388	the real property at any time before the period covered by the
389	389	agreement with the municipality and other than [inventory or]
390	390	supplies. The governing body of the municipality may adopt
391	391	guidelines and criteria for tax abatement agreements entered into
392	392	under this subsection that are different from the guidelines and
393	393	criteria that apply to tax abatement agreements entered into under
394	394	another provision of this section. Tax abatement agreements
395	395	entered into under this subsection are not required to contain
396	396	identical terms for the portion of the value of the property that is
397	397	to be exempt or for the duration of the exemption as tax abatement
398	398	agreements entered into with the owners of property in the
399	399	reinvestment zone under another provision of this section.
400	400	SECTION 18. Section 503.038(a), Transportation Code, is
401	401	amended to read as follows:
402	402	(a) The department may cancel a dealer's general
403	403	distinguishing number if the dealer:
404	404	(1) falsifies or forges a title document, including an
405	405	affidavit making application for a certified copy of a title;
406	406	(2) files a false or forged tax document, including a
407	407	sales tax affidavit;
408	408	(3) fails to take assignment of any basic evidence of
409	409	ownership, including a certificate of title or manufacturer's
410	410	certificate, for a vehicle the dealer acquires;
411	411	(4) fails to assign any basic evidence of ownership,
412	412	including a certificate of title or manufacturer's certificate, for
413	413	a vehicle the dealer sells;
414	414	(5) uses or permits the use of a metal dealer's license
415	415	plate or a dealer's temporary tag on a vehicle that the dealer does
416	416	not own or control or that is not in stock and offered for sale;
417	417	(6) makes a material misrepresentation in an
418	418	application or other information filed with the department;
419	419	(7) fails to maintain the qualifications for a general
420	420	distinguishing number;
421	421	(8) fails to provide to the department within 30 days
422	422	after the date of demand by the department satisfactory and
423	423	reasonable evidence that the person is regularly and actively
424	424	engaged in business as a wholesale or retail dealer;
425	425	(9) has been licensed for at least 12 months and has
426	426	not assigned at least five vehicles during the previous 12-month
427	427	period;
428	428	(10) [has failed to demonstrate compliance with
429	429	Sections 23.12, 23.121, and 23.122, Tax Code;
430	430	[(11)] uses or allows the use of the dealer's general
431	431	distinguishing number or the location for which the general
432	432	distinguishing number is issued to avoid the requirements of this
433	433	chapter;
434	434	(11) [(12)] misuses or allows the misuse of a
435	435	temporary tag authorized under this chapter;
436	436	(12) [(13)] refuses to show on a buyer's temporary tag
437	437	the date of sale or other reasonable information required by the
438	438	department; or
439	439	(13) [(14)] otherwise violates this chapter or a rule
440	440	adopted under this chapter.
441	441	SECTION 19. The following provisions of the Tax Code are
442	442	repealed:
443	443	(1) Section 6.24(c);
444	444	(2) Section 11.253(a)(1);
445	445	(3) Section 23.12;
446	446	(4) Section 23.121;
447	447	(5) Section 23.1211;
448	448	(6) Section 23.122;
449	449	(7) Section 23.123;
450	450	(8) Section 23.124;
451	451	(9) Section 23.1241;
452	452	(10) Section 23.1242;
453	453	(11) Section 23.1243;
454	454	(12) Section 23.125;
455	455	(13) Section 23.126;
456	456	(14) Section 23.127;
457	457	(15) Section 23.128;
458	458	(16) Section 23.129; and
459	459	(17) Section 41.47(c-1).
460	460	SECTION 20. (a) This Act applies only to a tax year that
461	461	begins on or after the effective date of this Act.
462	462	(b) Sections 23.121, 23.122, 23.123, 23.124, 23.125,
463	463	23.126, 23.127, and 23.128, Tax Code, as repealed by this Act, apply
464	464	only to an offense committed before the effective date of this Act.
465	465	An offense committed before the effective date of this Act is
466	466	governed by the law in effect on the date the offense was committed,
467	467	and the former law is continued in effect for that purpose. For
468	468	purposes of this subsection, an offense was committed before the
469	469	effective date of this Act if any element of the offense occurred
470	470	before that date.
471	471	(c) Notwithstanding the changes in law made by this Act to
472	472	the provisions of the Business & Commerce Code, Tax Code, and
473	473	Transportation Code amended by this Act and the repeal by this Act
474	474	of provisions of the Tax Code, each of those provisions, as it
475	475	existed immediately before January 1, 2024, is continued in effect
476	476	for the purpose of the levy and collection of an ad valorem tax on
477	477	inventory imposed before January 1, 2024.
478	478	SECTION 21. This Act takes effect January 1, 2024, but only
479	479	if the constitutional amendment proposed by the 88th Legislature,
480	480	Regular Session, 2023, authorizing the legislature to exempt from
481	481	ad valorem taxation a person's inventory is approved by the voters.
482	482	If that amendment is not approved by the voters, this Act has no
483	483	effect.