Bill Text: TX HB2987 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to the exemption of tangible personal property from ad valorem taxation; making conforming changes.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced - Dead) 2023-04-24 - Left pending in committee [HB2987 Detail]

Download: Texas-2023-HB2987-Introduced.html

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88R2892 RDS-D
By: Metcalf H.B. No. 2987

A BILL TO BE ENTITLED
AN ACT
relating to the exemption of tangible personal property from ad
valorem taxation; making conforming changes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 6.24(b), Tax Code, is amended to read as
follows:
(b) The commissioners court with the approval of the county
assessor-collector may contract as provided by the Interlocal
Cooperation Act with the governing body of another taxing unit in
the county or with the board of directors of the appraisal district
for the other taxing unit or the district to perform duties relating
to the assessment or collection of taxes for the county. If a
county contracts to have its taxes assessed and collected by
another taxing unit or by the appraisal district, [except as
provided by Subsection (c),] the contract shall require the other
taxing unit or the district to assess and collect all taxes the
county is required to assess and collect.
SECTION 2. The heading to Section 11.01, Tax Code, is
amended to read as follows:
Sec. 11.01. REAL [AND TANGIBLE PERSONAL] PROPERTY.
SECTION 3. Section 11.01(a), Tax Code, is amended to read as
follows:
(a) All real [and tangible personal] property that this
state has jurisdiction to tax is taxable unless exempt by law.
SECTION 4. Subchapter A, Chapter 11, Tax Code, is amended by
adding Section 11.015 to read as follows:
Sec. 11.015. TANGIBLE PERSONAL PROPERTY. (a) Tangible
personal property is not taxable for a tax year that begins on or
after January 1, 2024.
(b) On and after January 1, 2024, a provision of this code or
another law that would otherwise apply to the taxation of tangible
personal property for a tax year that begins on or after that date
has no effect for that tax year.
SECTION 5. Section 11.18(a), Tax Code, is amended to read as
follows:
(a) An organization that qualifies as a charitable
organization as provided by this section is entitled to an
exemption from taxation of:
(1) the buildings [and tangible personal property]
that:
(A) are owned by the charitable organization; and
(B) except as permitted by Subsection (b), are
used exclusively by qualified charitable organizations; and
(2) the real property owned by the charitable
organization consisting of:
(A) an incomplete improvement that:
(i) is under active construction or other
physical preparation; and
(ii) is designed and intended to be used
exclusively by qualified charitable organizations; and
(B) the land on which the incomplete improvement
is located that will be reasonably necessary for the use of the
improvement by qualified charitable organizations.
SECTION 6. Section 11.181(c), Tax Code, is amended to read
as follows:
(c) An organization entitled to an exemption under
Subsection (a) is also entitled to an exemption from taxation of any
building [or tangible personal property] the organization owns and
uses in the administration of its acquisition, building, repair, or
sale of property. To qualify for an exemption under this
subsection, property must be used exclusively by the charitable
organization, except that another individual or organization may
use the property for activities incidental to the charitable
organization's use that benefit the beneficiaries of the charitable
organization.
SECTION 7. Section 11.182(f), Tax Code, is amended to read
as follows:
(f) An organization entitled to an exemption under
Subsection (b) is also entitled to an exemption from taxation of any
building [or tangible personal property] the organization owns and
uses in the administration of its acquisition, building, repair,
sale, or rental of property. To qualify for an exemption under this
subsection, property must be used exclusively by the organization,
except that another person may use the property for activities
incidental to the organization's use that benefit the beneficiaries
of the organization.
SECTION 8. Section 11.1827(d), Tax Code, is amended to read
as follows:
(d) A community land trust entitled to an exemption from
taxation by a taxing unit under Subsection (b) is also entitled to
an exemption from taxation by the taxing unit of any real [or
tangible personal] property the trust owns and uses in the
administration of its acquisition, construction, repair, sale, or
leasing of property. To qualify for an exemption under this
subsection, property must be used exclusively by the trust, except
that another person may use the property for activities incidental
to the trust's use that benefit the beneficiaries of the trust.
SECTION 9. Section 11.184(c), Tax Code, is amended to read
as follows:
(c) A qualified charitable organization is entitled to an
exemption from taxation of:
(1) the buildings and other real property [and the
tangible personal property] that:
(A) are owned by the organization; and
(B) except as permitted by Subsection (d), are
used exclusively by the organization and other organizations
eligible for an exemption from taxation under this section or
Section 11.18; and
(2) the real property owned by the organization
consisting of:
(A) an incomplete improvement that:
(i) is under active construction or other
physical preparation; and
(ii) is designed and intended to be used
exclusively by the organization and other organizations eligible
for an exemption from taxation under this section or Section 11.18;
and
(B) the land on which the incomplete improvement
is located that will be reasonably necessary for the use of the
improvement by the organization and other organizations eligible
for an exemption from taxation under this section or Section 11.18.
SECTION 10. Section 11.185(c), Tax Code, is amended to read
as follows:
(c) An organization entitled to an exemption under
Subsection (a) is also entitled to an exemption from taxation of any
building [or tangible personal property] the organization owns and
uses in the administration of its acquisition, building, repair, or
sale of property. To qualify for an exemption under this
subsection, property must be used exclusively by the charitable
organization, except that another individual or organization may
use the property for activities incidental to the charitable
organization's use that benefit the beneficiaries of the charitable
organization.
SECTION 11. Sections 11.20(a), (d), (f), (g), (h), (j), and
(k), Tax Code, are amended to read as follows:
(a) An organization that qualifies as a religious
organization as provided by Subsection (c) is entitled to an
exemption from taxation of:
(1) the real property that is owned by the religious
organization, is used primarily as a place of regular religious
worship, and is reasonably necessary for engaging in religious
worship;
(2) [the tangible personal property that is owned by
the religious organization and is reasonably necessary for engaging
in worship at the place of worship specified in Subdivision (1);
[(3)] the real property that is owned by the religious
organization and is reasonably necessary for use as a residence
(but not more than one acre of land for each residence) if the
property:
(A) is used exclusively as a residence for those
individuals whose principal occupation is to serve in the clergy of
the religious organization; and
(B) produces no revenue for the religious
organization;
(3) [(4) the tangible personal property that is owned
by the religious organization and is reasonably necessary for use
of the residence specified by Subdivision (3);
[(5)] the real property owned by the religious
organization consisting of:
(A) an incomplete improvement that is under
active construction or other physical preparation and that is
designed and intended to be used by the religious organization as a
place of regular religious worship when complete; and
(B) the land on which the incomplete improvement
is located that will be reasonably necessary for the religious
organization's use of the improvement as a place of regular
religious worship;
(4) [(6)] the land that the religious organization
owns for the purpose of expansion of the religious organization's
place of regular religious worship or construction of a new place of
regular religious worship if:
(A) the religious organization qualifies other
property, including a portion of the same tract or parcel of land,
owned by the organization for an exemption under Subdivision (1) or
(3) [(5)]; and
(B) the land produces no revenue for the
religious organization; and
(5) [(7)] the real property owned by the religious
organization that is leased to another person and used by that
person for the operation of a school that qualifies as a school
under Section 11.21(d).
(d) Use of property that qualifies for the exemption
prescribed by Subsection (a)(1) or [(2) or by Subsection] (h)(1)
for occasional secular purposes other than religious worship does
not result in loss of the exemption if the primary use of the
property is for religious worship and all income from the other use
is devoted exclusively to the maintenance and development of the
property as a place of religious worship.
(f) A property may not be exempted under Subsection (a)(3)
[(a)(5)] for more than three years.
(g) For purposes of Subsection (a)(3) [(a)(5)], an
incomplete improvement is under physical preparation if the
religious organization has engaged in architectural or engineering
work, soil testing, land clearing activities, or site improvement
work necessary for the construction of the improvement or has
conducted an environmental or land use study relating to the
construction of the improvement.
(h) Property owned by this state or a political subdivision
of this state, including a leasehold or other possessory interest
in the property, that is held or occupied by an organization that
qualifies as a religious organization as provided by Subsection (c)
is entitled to an exemption from taxation if the property:
(1) is used by the organization primarily as a place of
regular religious worship and is reasonably necessary for engaging
in religious worship; or
(2) meets the qualifications for an exemption under
Subsection (a)(3) [(a)(5)].
(j) A tract of land that is contiguous to the tract of land
on which the religious organization's place of regular religious
worship is located may not be exempted under Subsection (a)(4)
[(a)(6)] for more than 10 years. A tract of land that is not
contiguous to the tract of land on which the religious
organization's place of regular religious worship is located may
not be exempted under Subsection (a)(4) [(a)(6)] for more than
three years. For purposes of this subsection, a tract of land is
considered to be contiguous with another tract of land if the tracts
are divided only by a road, railroad track, river, or stream.
(k) For purposes of Subsection (a)(4) [(a)(6)], an
application or statement accompanying an application for the
exemption stating that the land is owned for the purposes described
by Subsection (a)(4) [(a)(6)] and signed by an authorized officer
of the organization is sufficient to establish that the land is
owned for those purposes.
SECTION 12. Sections 11.201(a) and (c), Tax Code, are
amended to read as follows:
(a) If land is sold or otherwise transferred to another
person in a year in which the land receives an exemption under
Section 11.20(a)(4) [11.20(a)(6)], an additional tax is imposed on
the land equal to the tax that would have been imposed on the land
had the land been taxed for each of the five years preceding the
year in which the sale or transfer occurs in which the land received
an exemption under that subsection, plus interest at an annual rate
of seven percent calculated from the dates on which the taxes would
have become due.
(c) If only part of a parcel of land that is exempted under
Section 11.20(a)(4) [11.20(a)(6)] is sold or transferred, the tax
applies only to that part of the parcel and equals the taxes that
would have been imposed had that part been taxed.
SECTION 13. Sections 11.21(a), (b), and (f), Tax Code, are
amended to read as follows:
(a) A person is entitled to an exemption from taxation of:
(1) the buildings [and tangible personal property]
that the person owns and that are used for a school that is
qualified as provided by Subsection (d) if:
(A) the school is operated exclusively by the
person owning the property;
(B) except as permitted by Subsection (b), the
buildings [and tangible personal property] are used exclusively for
educational functions; and
(C) the buildings [and tangible personal
property] are reasonably necessary for the operation of the school;
and
(2) the real property owned by the person consisting
of:
(A) an incomplete improvement that:
(i) is under active construction or other
physical preparation; and
(ii) is designed and intended to be used for
a school that is qualified as provided by Subsection (d); and
(B) the land on which the incomplete improvement
is located that will be reasonably necessary for the use of the
improvement for a school that is qualified as provided by
Subsection (d).
(b) Use of exempt [tangible] property for functions other
than educational functions does not result in loss of an exemption
authorized by this section if those other functions are incidental
to use of the property for educational functions and benefit the
students or faculty of the school.
(f) Notwithstanding Subsection (a), a person is entitled to
an exemption from taxation of the buildings [and tangible personal
property] the person acquires for use for a school that meets each
requirement of Subsection (d) if:
(1) the person authorizes the former owner to continue
to use the property pending the use of the property for a school;
and
(2) the former owner would be entitled to an exemption
from taxation of the property if the former owner continued to own
the property.
SECTION 14. Section 11.23(m), Tax Code, is amended to read
as follows:
(m) National Hispanic Institute. The National Hispanic
Institute is entitled to an exemption from taxation of the real [and
tangible personal] property it owns as long as the organization is
exempt from federal income taxation under Section 501(a), Internal
Revenue Code of 1986, as an organization described by Section
501(c)(3) of that code.
SECTION 15. Section 11.231(b), Tax Code, is amended to read
as follows:
(b) An association that qualifies as a nonprofit community
business organization as provided by this section is entitled to an
exemption from taxation of:
(1) the buildings [and tangible personal property]
that:
(A) are owned by the nonprofit community business
organization; and
(B) except as permitted by Subsection (c), are
used exclusively by qualified nonprofit community business
organizations to perform their primary functions; and
(2) the real property owned by the nonprofit community
business organization consisting of:
(A) an incomplete improvement that:
(i) is under active construction or other
physical preparation; and
(ii) is designed and intended to be used
exclusively by qualified nonprofit community business
organizations; and
(B) the land on which the incomplete improvement
is located that will be reasonably necessary for the use of the
improvement by qualified nonprofit community business
organizations.
SECTION 16. Section 11.35(a)(2), Tax Code, is amended to
read as follows:
(2) "Qualified property" means property that:
(A) consists of:
(i) [tangible personal property used for
the production of income;
[(ii)] an improvement to real property; or
(ii) [(iii)] a manufactured home as that
term is defined by Section 1201.003, Occupations Code, that is used
as a dwelling, regardless of whether the owner of the manufactured
home elects to treat the manufactured home as real property under
Section 1201.2055, Occupations Code;
(B) is located in an area declared by the
governor to be a disaster area following a disaster; and
(C) is at least 15 percent damaged by the
disaster, as determined by the chief appraiser under this section[;
and
[(D) for property described by Paragraph (A)(i),
is the subject of a rendition statement or property report filed by
the property owner under Section 22.01 that demonstrates that the
property had taxable situs in the disaster area for the tax year in
which the disaster occurred].
SECTION 17. Section 11.35(g), Tax Code, is amended to read
as follows:
(g) The chief appraiser shall assign to an item of qualified
property:
(1) a Level I damage assessment rating if the property
is at least 15 percent, but less than 30 percent, damaged, meaning
that the property suffered minimal damage and may continue to be
used as intended;
(2) a Level II damage assessment rating if the
property is at least 30 percent, but less than 60 percent, damaged,
meaning [which, for qualified property described by Subsection
(a)(2)(A)(ii) or (iii), means] that the property has suffered only
nonstructural damage, including nonstructural damage to the roof,
walls, foundation, or mechanical components, and the waterline, if
any, is less than 18 inches above the floor;
(3) a Level III damage assessment rating if the
property is at least 60 percent damaged but is not a total loss,
meaning [which, for qualified property described by Subsection
(a)(2)(A)(ii) or (iii), means] that the property has suffered
significant structural damage requiring extensive repair due to the
failure or partial failure of structural elements, wall elements,
or the foundation, or the waterline is at least 18 inches above the
floor; or
(4) a Level IV damage assessment rating if the
property is a total loss, meaning that repair of the property is not
feasible.
SECTION 18. Section 11.42(b), Tax Code, is amended to read
as follows:
(b) An exemption authorized by Section 11.11 [or 11.141] is
effective immediately on qualification for the exemption.
SECTION 19. Sections 11.43(a), (b), (c), and (e), Tax Code,
are amended to read as follows:
(a) To receive an exemption, a person claiming the
exemption, other than an exemption authorized by Section 11.11,
11.12, or [11.14, 11.141, 11.145,] 11.146[, 11.15, 11.16, 11.161,
or 11.25], must apply for the exemption. To apply for an exemption,
a person must file an exemption application form with the chief
appraiser for each appraisal district in which the property subject
to the claimed exemption has situs.
(b) Except as provided by Subsection (c) and by Section
[Sections] 11.184 [and 11.437], a person required to apply for an
exemption must apply each year the person claims entitlement to the
exemption.
(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,
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.
(e) Except as provided by Section 11.422, 11.431, 11.433,
11.434, 11.435, or 11.439, [or 11.4391,] if a person required to
apply for an exemption in a given year fails to file timely a
completed application form, the person may not receive the
exemption for that year.
SECTION 20. Section 21.06(a), Tax Code, is amended to read
as follows:
(a) Except as provided by Section 21.08 [Sections 21.07
through 21.09 of this code], intangible property is taxable by a
taxing unit if the owner of the property resides in the taxing unit
on January 1, unless the property normally is used in this state for
business purposes outside the taxing unit. In that event, the
intangible property is taxable by each taxing unit in which the
property normally is used for business purposes.
SECTION 21. Sections 22.01(a), (b), (c), (c-2), (f), and
(g), Tax Code, are amended to read as follows:
(a) [Except as provided by Chapter 24, a person shall render
for taxation all tangible personal property used for the production
of income that the person owns or that the person manages and
controls as a fiduciary on January 1.] A rendition statement shall
contain:
(1) the name and address of the property owner;
(2) a description of the property by type or category;
(3) [if the property is inventory, a description of
each type of inventory and a general estimate of the quantity of
each type of inventory;
[(4)] the physical location or taxable situs of the
property; and
(4) [(5)] the property owner's good faith estimate of
the market value of the property or, at the option of the property
owner, the historical cost when new and the year of acquisition of
the property.
(b) When required by the chief appraiser, a person shall
render for taxation any [other] taxable property that the person
[he] owns or that the person [he] manages and controls as a
fiduciary on January 1.
(c) A person may render for taxation any property that the
person [he] owns or that the person [he] manages and controls as a
fiduciary on January 1, although the person [he] is not required to
render it by Subsection [(a) or] (b) [of this section].
(c-2) With the consent of the property owner, a secured
party may render for taxation any property of the property owner in
which the secured party has a security interest on January 1,
although the secured party is not required to render the property by
Subsection [(a) or] (b). This subsection applies only to property
that has a historical cost when new of more than $50,000.
(f) Notwithstanding Subsection [Subsections] (a) [and (b)],
a rendition statement of a person who owns [tangible personal]
property [used for the production of income] located in the
appraisal district that, in the owner's opinion, has an aggregate
value of less than $20,000 is required to contain only:
(1) the name and address of the property owner;
(2) a general description of the property by type or
category; and
(3) the physical location or taxable situs of the
property.
(g) A person's good faith estimate of the market value of
the property under Subsection (a)(4) [(a)(5)] is solely for the
purpose of compliance with any [the] requirement to render
[tangible personal] property and is inadmissible in any subsequent
protest, hearing, appeal, suit, or other proceeding under this
title involving the property, except for:
(1) a proceeding to determine whether the person
complied with this section;
(2) a proceeding under Section 22.29(b); or
(3) a protest under Section 41.41.
SECTION 22. Section 22.02, Tax Code, is amended to read as
follows:
Sec. 22.02. RENDITION OF PROPERTY LOSING EXEMPTION DURING
TAX YEAR [OR FOR WHICH EXEMPTION APPLICATION IS DENIED]. [(a)] If
an exemption applicable to a property on January 1 terminates
during the tax year, the person who owns or acquires the property on
the date applicability of the exemption terminates shall render the
property for taxation within 30 days after the date of termination.
[(b) If the chief appraiser denies an application for an
exemption for property described by Section 22.01(a), the person
who owns the property on the date the application is denied shall
render the property for taxation in the manner provided by Section
22.01 within 30 days after the date of denial.]
SECTION 23. Section 22.05, Tax Code, is amended to read as
follows:
Sec. 22.05. RENDITION BY RAILROAD. (a) A [In addition to
other reports required by Chapter 24 of this code, a] railroad
corporation shall render the real property the railroad corporation
owns or possesses as of January 1.
(b) The rendition shall:
(1) list all real property other than the property
covered by Subdivision (2) [of this subsection]; and
(2) list the number of miles of railroad together with
the market value per mile, which value shall include right-of-way,
roadbed, superstructure, and all buildings and improvements used in
the operation of the railroad[; and
[(3) list all personal property as required by Section
22.01 of this code].
SECTION 24. The heading to Section 22.07, Tax Code, is
amended to read as follows:
Sec. 22.07. STATEMENT INDICATING HOW VALUE RENDERED
[INSPECTION OF PROPERTY].
SECTION 25. Section 22.07, Tax Code, is amended by amending
Subsection (c) and adding Subsection (c-1) to read as follows:
(c) The chief appraiser may request, either in writing or by
electronic means, that the property owner provide a statement
containing supporting information indicating how the value
rendered under Section 22.01(a)(4) [22.01(a)(5)] was determined.
The statement must:
(1) summarize information sufficient to identify the
property, including:
(A) the physical and economic characteristics
relevant to the opinion of value, if appropriate; and
(B) the source of the information used;
(2) state the effective date of the opinion of value;
and
(3) explain the basis of the value rendered.
(c-1) If the property owner is a business with 50 employees
or less, the property owner may base the estimate of value on the
depreciation schedules used for federal income tax purposes.
SECTION 26. Section 23.014, Tax Code, is amended to read as
follows:
Sec. 23.014. EXCLUSION OF PROPERTY AS REAL PROPERTY. In
[Except as provided by Section 23.24(b), in] determining the market
value of real property, the chief appraiser shall analyze the
effect on that value of, and exclude from that value the value of,
any:
(1) tangible personal property, including trade
fixtures;
(2) intangible personal property;
(3) chicken coops or rabbit pens used for the
noncommercial production of food for personal consumption; or
(4) other property that is not subject to appraisal as
real property.
SECTION 27. Sections 23.12(a) and (f), Tax Code, are
amended to read as follows:
(a) The [Except as provided by Sections 23.121, 23.1241,
23.124, and 23.127, the] market value of a real property [an]
inventory is the price for which it would sell as a unit to a
purchaser who would continue the business. A real property [An]
inventory includes [shall include] residential real property which
has never been occupied as a residence and is held for sale in the
ordinary course of a trade or business, provided that the
residential real property remains unoccupied, is not leased or
rented, and produces no income.
(f) The owner of an inventory [other than a dealer's motor
vehicle inventory as that term is defined by Section 23.121, a
dealer's heavy equipment inventory as that term is defined by
Section 23.1241, or a dealer's vessel and outboard motor inventory
as that term is defined by Section 23.124, or a retail manufactured
housing inventory as that term is defined by Section 23.127] may
elect to have the inventory appraised at its market value as of
September 1 of the year preceding the tax year to which the
appraisal applies by filing an application with the chief appraiser
requesting that the inventory be appraised as of September 1. The
application must clearly describe the inventory to which it applies
and be signed by the owner of the inventory. The application
applies to the appraisal of the inventory in each tax year that
begins after the next August 1 following the date the application is
filed with the chief appraiser unless the owner of the inventory by
written notice filed with the chief appraiser revokes the
application or the ownership of the inventory changes. A notice
revoking the application is effective for each tax year that begins
after the next September following the date the notice of
revocation is filed with the chief appraiser.
SECTION 28. Sections 25.25(e) and (m), Tax Code, are
amended to read as follows:
(e) If the chief appraiser and the property owner do not
agree to the correction before the 15th day after the date the
motion is filed, a party bringing a motion under Subsection (c)[,
(c-1),] or (d) is entitled on request to a hearing on and a
determination of the motion by the appraisal review board. A party
bringing a motion under this section must describe the error or
errors that the motion is seeking to correct. If a request for
hearing is made on or after January 1 but before September 1, the
appraisal review board shall schedule the hearing to be held as soon
as practicable but not later than the 90th day after the date the
board approves the appraisal records as provided by Section 41.12.
If a request for hearing is made on or after September 1 but before
January 1 of the following tax year, the appraisal review board
shall schedule the hearing to be held as soon as practicable but not
later than the 90th day after the date the request for the hearing
is made. Not later than 15 days before the date of the hearing, the
board shall deliver written notice of the date, time, and place of
the hearing to the chief appraiser, the property owner, and the
presiding officer of the governing body of each taxing unit in which
the property is located. The chief appraiser, the property owner,
and each taxing unit are entitled to present evidence and argument
at the hearing and to receive written notice of the board's
determination of the motion. The property owner is entitled to
elect to present the owner's evidence and argument before, after,
or between the cases presented by the chief appraiser and each
taxing unit. A property owner who files the motion must comply with
the payment requirements of Section 25.26 or forfeit the right to a
final determination of the motion.
(m) The hearing on a motion under Subsection (c)[, (c-1),]
or (d) shall be conducted in the manner provided by Subchapter C,
Chapter 41.
SECTION 29. Sections 26.012(6) and (15), Tax Code, are
amended to read as follows:
(6) "Current total value" means the total taxable
value of property listed on the appraisal roll for the current year,
including all appraisal roll supplements and corrections as of the
date of the calculation, less the taxable value of property
exempted for the current tax year for the first time under Section
11.31 [or 11.315], except that:
(A) the current total value for a school district
excludes:
(i) the total value of homesteads that
qualify for a tax limitation as provided by Section 11.26; and
(ii) new property value of property that is
subject to an agreement entered into under Chapter 313; and
(B) the current total value for a county,
municipality, or junior college district excludes the total value
of homesteads that qualify for a tax limitation provided by Section
11.261.
(15) "Lost property levy" means the amount of taxes
levied in the preceding year on property value that was taxable in
the preceding year but is not taxable in the current year because
the property is exempt in the current year under a provision of this
code other than Section [11.251, 11.253, or] 11.35, the property
has qualified for special appraisal under Chapter 23 in the current
year, or the property is located in territory that has ceased to be
a part of the taxing unit since the preceding year.
SECTION 30. Section 26.09(b), Tax Code, is amended to read
as follows:
(b) [The county assessor-collector shall add the properties
and their values certified to him as provided by Chapter 24 of this
code to the appraisal roll for county tax purposes.] The county
assessor-collector shall use the appraisal roll certified to the
county assessor-collector [him] as provided by Section 26.01 [with
the added properties and values] to calculate county taxes.
SECTION 31. Section 31.032(a), Tax Code, is amended to read
as follows:
(a) This section applies only to:
(1) real property that:
(A) is:
(i) the residence homestead of the owner or
consists of property that is used for residential purposes and that
has fewer than five living units; or
(ii) owned or leased by a business entity
that had not more than the amount calculated as provided by
Subsection (h) in gross receipts in the entity's most recent
federal tax year or state franchise tax annual period, according to
the applicable federal income tax return or state franchise tax
report of the entity;
(B) is located in a disaster area or emergency
area; and
(C) has been damaged as a direct result of the
disaster or emergency; and
(2) [tangible personal property that is owned or
leased by a business entity described by Subdivision (1)(A)(ii);
and
[(3)] taxes that are imposed on the property by a
taxing unit before the first anniversary of the disaster or
emergency.
SECTION 32. Section 31.033(b), Tax Code, is amended to read
as follows:
(b) This section applies only to:
(1) real property that:
(A) is owned or leased by a business entity that
had not more than the amount calculated as provided by Section
31.032(h) in gross receipts in the entity's most recent federal tax
year or state franchise tax annual period, according to the
applicable federal income tax return or state franchise tax report
of the entity;
(B) is located in a disaster area or emergency
area; and
(C) has not been damaged as a direct result of the
disaster or emergency; and
(2) [tangible personal property that is owned or
leased by a business entity described by Subdivision (1)(A); and
[(3)] taxes that are imposed on the property by a
taxing unit before the first anniversary of the disaster or
emergency.
SECTION 33. Section 31.06(e), Tax Code, is amended to read
as follows:
(e) A collector may adopt a written policy that requires
payment of delinquent taxes, penalties, interest, and costs and
expenses recoverable under Section 33.48 only with United States
currency, a cashier's check, a certified check, or an electronic
funds transfer if the payment relates to:
(1) [personal property seized under Subchapter B,
Chapter 33;
[(2)] property subject to an order of sale under
Subchapter C, Chapter 33; or
(2) [(3)] real property seized under Subchapter E,
Chapter 33.
SECTION 34. Section 41.44(a), Tax Code, is amended to read
as follows:
(a) Except as provided by Subsections (b), (c), (c-1), and
(c-2), to be entitled to a hearing and determination of a protest,
the property owner initiating the protest must file a written
notice of the protest with the appraisal review board having
authority to hear the matter protested:
(1) not later than May 15 or the 30th day after the
date that notice to the property owner was delivered to the property
owner as provided by Section 25.19, whichever is later;
(2) in the case of a protest of a change in the
appraisal records ordered as provided by Subchapter A of this
chapter or by Chapter 25, not later than the 30th day after the date
notice of the change is delivered to the property owner;
(3) in the case of a determination that a change in the
use of land appraised under Subchapter C, D, E, or H, Chapter 23,
has occurred, not later than the 30th day after the date the notice
of the determination is delivered to the property owner; or
(4) [in the case of a determination of eligibility for
a refund under Section 23.1243, not later than the 30th day after
the date the notice of the determination is delivered to the
property owner; or
[(5)] in the case of a protest of the modification or
denial of an application for an exemption under Section 11.35, or
the determination of an appropriate damage assessment rating for an
item of qualified property under that section, not later than the
30th day after the date the property owner receives the notice
required under Section 11.45(e).
SECTION 35. Section 42.01, Tax Code, is amended to read as
follows:
Sec. 42.01. RIGHT OF APPEAL BY PROPERTY OWNER. (a) A
property owner is entitled to appeal[:
[(1)] an order of the appraisal review board
determining:
(1) [(A)] a protest by the property owner as provided
by Subchapter C of Chapter 41;
(2) [(B)] a motion filed under Section 25.25;
(3) [(C)] that the property owner has forfeited the
right to a final determination of a motion filed under Section 25.25
or of a protest under Section 41.411 for failing to comply with the
prepayment requirements of Section 25.26 or 41.4115, as applicable;
or
(4) [(D) eligibility for a refund requested under
Section 23.1243; or
[(E)] that the appraisal review board lacks
jurisdiction to finally determine a protest by the property owner
under Subchapter C, Chapter 41, or a motion filed by the property
owner under Section 25.25 because the property owner failed to
comply with a requirement of Subchapter C, Chapter 41, or Section
25.25, as applicable[; or
[(2) an order of the comptroller issued as provided by
Subchapter B, Chapter 24, apportioning among the counties the
appraised value of railroad rolling stock owned by the property
owner].
(b) A property owner who establishes that the owner did not
forfeit the right to a final determination of a motion or of a
protest in an appeal under Subsection (a)(3) [(a)(1)(C)] is
entitled to a final determination of the court, as applicable:
(1) of the motion filed under Section 25.25; or
(2) of the protest under Section 41.411 of the failure
of the chief appraiser or appraisal review board to provide or
deliver a notice to which the property owner is entitled, and, if
failure to provide or deliver the notice is established, of a
protest made by the property owner on any other grounds of protest
authorized by this title relating to the property to which the
notice applies.
(c) A property owner who establishes that the appraisal
review board had jurisdiction to issue a final determination of the
protest by the property owner under Subchapter C, Chapter 41, or of
the motion filed by the property owner under Section 25.25 in an
appeal under Subsection (a)(4) [(a)(1)(E)] of this section is
entitled to a final determination by the court of the protest under
Subchapter C, Chapter 41, or of the motion filed under Section
25.25. A final determination of a protest under Subchapter C,
Chapter 41, by the court under this subsection may be on any ground
of protest authorized by this title applicable to the property that
is the subject of the protest, regardless of whether the property
owner included the ground in the property owner's notice of
protest.
SECTION 36. Section 42.21(b), Tax Code, is amended to read
as follows:
(b) A petition for review brought under Section 42.02 must
be brought against the owner of the property involved in the appeal.
A petition for review brought under Section 42.031 must be brought
against the appraisal district and against the owner of the
property involved in the appeal. [A petition for review brought
under Section 42.01(a)(2) or 42.03 must be brought against the
comptroller.] Any other petition for review under this chapter
must be brought against the appraisal district. A petition for
review may not be brought against the appraisal review board. An
appraisal district may hire an attorney that represents the
district to represent the appraisal review board established for
the district to file an answer and obtain a dismissal of a suit
filed against the appraisal review board in violation of this
subsection.
SECTION 37. Section 42.22, Tax Code, as amended by Chapters
667 (S.B. 548) and 1033 (H.B. 301), Acts of the 73rd Legislature,
Regular Session, 1993, is reenacted and amended to read as follows:
Sec. 42.22. VENUE. (a) Except as provided by Subsection
[Subsections] (b) of this section [and (c),] and by Section 42.221,
venue is in the county in which the appraisal review board that
issued the order appealed is located.
(b) Venue of an action brought under Section 42.01(a)
[42.01(1)] is in the county in which the property is located or in
the county in which the appraisal review board that issued the order
is located.
[(c) Venue is in Travis County if the order appealed was
issued by the comptroller.]
SECTION 38. Sections 151.356(a) and (c), Tax Code, are
amended to read as follows:
(a) In this section:
(1) "Environmental protection agency of the United
States" includes:
(A) the United States Department of the Interior
and any agency, bureau, or other entity established in that
department, including the Bureau of Safety and Environmental
Enforcement and the Bureau of Ocean Energy Management; and
(B) any other department, agency, bureau, or
entity of the United States that prescribes rules or regulations
described by Subdivision (3)(A).
(2) "Offshore[, "offshore] spill response containment
property" means tangible personal property:
(A) used, constructed, acquired, stored, or
installed solely as part of, or used solely for the development,
improvement, storage, deployment, repair, maintenance, or testing
of, an offshore spill response containment system that is stored
while not in use in a county bordering on the Gulf of Mexico or on a
bay or other body of water immediately adjacent to the Gulf of
Mexico [(1) described by Section 11.271(c)];
(B) [(2)] owned or leased by an entity formed
primarily for the purpose of designing, developing, modifying,
enhancing, assembling, operating, deploying, and maintaining an
offshore spill response containment system [described by Section
11.271(f)]; and
(C) [(3)] used or intended to be used solely in
an offshore spill response containment system [as defined by
Section 11.271(a)].
(3) "Offshore spill response containment system"
means a marine or mobile containment system that:
(A) is designed and used or intended to be used
solely to implement a response plan that meets or exceeds rules or
regulations adopted by any environmental protection agency of the
United States, this state, or a political subdivision of this state
for the control, reduction, or monitoring of air, water, or land
pollution in the event of a blowout or loss of control of an
offshore well drilled or used for the exploration for or production
of oil or gas;
(B) has a design capability to respond to a
blowout or loss of control of an offshore well drilled or used for
the exploration for or production of oil or gas that is drilled in
more than 5,000 feet of water;
(C) is used or intended to be used solely to
respond to a blowout or loss of control of an offshore well drilled
or used for the exploration for or production of oil or gas without
regard to the depth of the water in which the well is drilled; and
(D) except for any monitoring function for which
the system may be used, is used or intended to be used as a temporary
measure to address fugitive oil, gas, sulfur, or other minerals
after a leak has occurred and is not used or intended to be used
after the leak has been contained as a continuing means of producing
oil, gas, sulfur, or other minerals.
(4) "Rules or regulations adopted by any environmental
protection agency of the United States" includes 30 C.F.R. Part 254
and any corresponding provision or provisions of succeeding,
similar, substitute, proposed, or final federal regulations.
(c) The sale, lease, rental, storage, use, or other
consumption by an entity described by Subsection (a)(2)(B) [Section
11.271(f)] of offshore spill response containment property used
solely for the purposes described by [Section 11.271(c) and] this
section is exempted from the taxes imposed by this chapter.
SECTION 39. Section 312.0021(b), Tax Code, is amended to
read as follows:
(b) Notwithstanding any other provision of this chapter, an
owner or lessee of a parcel of real property that is located wholly
or partly in a reinvestment zone may not receive an exemption from
taxation of any portion of the value of the parcel of real property
[or of tangible personal property located on the parcel of real
property] under a tax abatement agreement under this chapter that
is entered into on or after September 1, 2017, if, on or after that
date, a wind-powered energy device is installed or constructed on
the same parcel of real property at a location that is within 25
nautical miles of the boundaries of a military aviation facility
located in this state. The prohibition provided by this section
applies regardless of whether the wind-powered energy device is
installed or constructed at a location that is in the reinvestment
zone.
SECTION 40. Section 312.007(a), Tax Code, is amended to
read as follows:
(a) In this section, "abatement period" means the period
during which all or a portion of the value of real property [or
tangible personal property] that is the subject of a tax abatement
agreement is exempt from taxation.
SECTION 41. Sections 312.204(a), (e), and (g), Tax Code,
are amended to read as follows:
(a) The governing body of a municipality eligible to enter
into tax abatement agreements under Section 312.002 may agree in
writing with the owner of taxable real property that is located in a
reinvestment zone, but that is not in an improvement project
financed by tax increment bonds, to exempt from taxation a portion
of the value of the real property [or of tangible personal property
located on the real property, or both,] for a period not to exceed
10 years, on the condition that the owner of the property make
specific improvements or repairs to the property. The governing
body of an eligible municipality may agree in writing with the owner
of a leasehold interest in tax-exempt real property that is located
in a reinvestment zone, but that is not in an improvement project
financed by tax increment bonds, to exempt a portion of the value of
property subject to ad valorem taxation, including the leasehold
interest or [,] improvements [, or tangible personal property]
located on the real property, for a period not to exceed 10 years,
on the condition that the owner of the leasehold interest make
specific improvements or repairs to the real property. A tax
abatement agreement under this section is subject to the rights of
holders of outstanding bonds of the municipality. An agreement
exempting taxable real property or leasehold interests or
improvements on tax-exempt real property may provide for the
exemption of such taxable interests in each year covered by the
agreement only to the extent its value for that year exceeds its
value for the year in which the agreement is executed. [An
agreement exempting tangible personal property located on taxable
or tax-exempt real property may provide for the exemption of
tangible personal property located on the real property in each
year covered by the agreement other than tangible personal property
that was located on the real property at any time before the period
covered by the agreement with the municipality, including inventory
and supplies.] In a municipality that has a comprehensive zoning
ordinance, an improvement, repair, development, or redevelopment
taking place under an agreement under this section must conform to
the comprehensive zoning ordinance.
(e) The governing body of a municipality eligible to enter
into tax abatement agreements under Section 312.002 may agree in
writing with the owner or lessee of real property that is located in
a reinvestment zone to exempt from taxation for a period not to
exceed 10 years a portion of the value of the real property [or of
personal property, or both,] located within the zone and owned or
leased by a certificated air carrier, on the condition that the
certificated air carrier make specific real property improvements
or lease for a term of 10 years or more real property improvements
located within the reinvestment zone. An agreement may provide for
the exemption of the real property in each year covered by the
agreement to the extent its value for that year exceeds its value
for the year in which the agreement is executed. [An agreement may
provide for the exemption of the personal property owned or leased
by a certificated air carrier located within the reinvestment zone
in each year covered by the agreement other than specific personal
property that was located within the reinvestment zone at any time
before the period covered by the agreement with the municipality.]
(g) Notwithstanding the other provisions of this chapter,
the governing body of a municipality eligible to enter into tax
abatement agreements under Section 312.002 may agree in writing
with the owner of real property that is located in a reinvestment
zone to exempt from taxation for a period not to exceed five years a
portion of the value of the real property [or of tangible personal
property located on the real property, or both,] that is used to
provide housing for military personnel employed at a military
facility located in or near the municipality. An agreement may
provide for the exemption of the real property in each year covered
by the agreement only to the extent its value for that year exceeds
its value for the year in which the agreement is executed. [An
agreement may provide for the exemption of tangible personal
property located on the real property in each year covered by the
agreement other than tangible personal property that was located on
the real property at any time before the period covered by the
agreement with the municipality and other than inventory or
supplies.] The governing body of the municipality may adopt
guidelines and criteria for tax abatement agreements entered into
under this subsection that are different from the guidelines and
criteria that apply to tax abatement agreements entered into under
another provision of this section. Tax abatement agreements
entered into under this subsection are not required to contain
identical terms for the portion of the value of the property that is
to be exempt or for the duration of the exemption as tax abatement
agreements entered into with the owners of property in the
reinvestment zone under another provision of this section.
SECTION 42. Section 312.210(b), Tax Code, is amended to
read as follows:
(b) A tax abatement agreement with the owner of real
property [or tangible personal property] that is located in the
reinvestment zone described by Subsection (a) and in a school
district that has a local revenue level that does not exceed the
level established under Section 48.257, Education Code, must exempt
from taxation:
(1) the portion of the value of the property in the
amount specified in the joint agreement among the municipality,
county, and junior college district; and
(2) an amount equal to 10 percent of the maximum
portion of the value of the property that may under Section
312.204(a) be otherwise exempted from taxation.
SECTION 43. Section 312.211(a), Tax Code, is amended to
read as follows:
(a) This section applies only to [:
[(1)] real property:
(1) [(A)] that is located in a reinvestment zone;
(2) [(B)] that is not in an improvement project
financed by tax increment bonds; and
(3) [(C)] that is the subject of a voluntary cleanup
agreement under Section 361.606, Health and Safety Code [; and
[(2) tangible personal property located on the real
property].
SECTION 44. Sections 312.402(a), (a-1), and (a-3), Tax
Code, are amended to read as follows:
(a) The commissioners court may execute a tax abatement
agreement with the owner of taxable real property located in a
reinvestment zone designated under this subchapter [or with the
owner of tangible personal property located on real property in a
reinvestment zone] to exempt from taxation all or a portion of the
value of the real property [, all or a portion of the value of the
tangible personal property located on the real property, or all or a
portion of the value of both].
(a-1) The commissioners court may execute a tax abatement
agreement with the owner of a leasehold interest in tax-exempt real
property located in a reinvestment zone designated under this
subchapter to exempt all or a portion of the value of the leasehold
interest in the real property. The court may execute a tax
abatement agreement with the owner of [tangible personal property
or] an improvement located on tax-exempt real property that is
located in a designated reinvestment zone to exempt all or a portion
of the value of the [tangible personal property or] improvement
located on the real property.
(a-3) The commissioners court may execute a tax abatement
agreement with a lessee of taxable real property located in a
reinvestment zone designated under this subchapter to exempt from
taxation all or a portion of the value of the fixtures,
improvements, or other real property owned by the lessee and
located on the property that is subject to the lease [, all or a
portion of the value of tangible personal property owned by the
lessee and located on the real property that is the subject of the
lease, or all or a portion of the value of both the fixtures,
improvements, or other real property and the tangible personal
property described by this subsection].
SECTION 45. Section 71.041(5), Agriculture Code, is amended
to read as follows:
(5) "Nursery stock weather protection unit" means a
plant cover consisting of a series of removable, portable metal
hoops, covered by nonreusable plastic sheeting, shade cloth, or
other similar removable material, used exclusively for protecting
nursery products from weather elements. A nursery stock weather
protection unit is an implement of husbandry for all purposes[,
including Article VIII, Section 19a, of the Texas Constitution].
SECTION 46. Section 93.001(2), Business & Commerce Code, is
amended to read as follows:
(2) "Heavy equipment" means self-propelled,
self-powered, or pull-type equipment, including farm equipment or a
diesel engine, that weighs at least 1,500 pounds and is intended to
be used for agricultural, construction, industrial, maritime,
mining, or forestry uses. The term does not include a motor
vehicle that is required by:
(A) Chapter 501, Transportation Code, to be
titled; or
(B) Chapter 502, Transportation Code, to be
registered [has the meaning assigned by Section 23.1241, Tax Code].
SECTION 47. Sections 89.003(a) and (b), Finance Code, are
amended to read as follows:
(a) Each association and each federal association shall
render for ad valorem taxation all of its personal property, other
than tangible personal property [furniture, fixtures, equipment,
and automobiles], as a whole at the value remaining after deducting
the following from the total value of its entire assets:
(1) all debts that it owes;
(2) all tax-free securities that it owns;
(3) its loss reserves and surplus;
(4) its savings liability; [and]
(5) the appraised value of its [furniture, fixtures,
and] real property; and
(6) the value of its tangible personal property.
(b) The association or federal association shall render the
personal property, other than tangible personal property
[furniture, fixtures, equipment, and automobiles], to the chief
appraiser of the appraisal district in the county in which its
principal office is located.
SECTION 48. Sections 403.302(d) and (i), Government Code,
are amended to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by former Section 311.003(e), Tax Code, before May 31,
1999, and within the boundaries of the zone as those boundaries
existed on September 1, 1999, including subsequent improvements to
the property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) the total dollar amount of any captured appraised
value of property that:
(A) is within a reinvestment zone:
(i) created on or before December 31, 2008,
by a municipality with a population of less than 18,000; and
(ii) the project plan for which includes
the alteration, remodeling, repair, or reconstruction of a
structure that is included on the National Register of Historic
Places and requires that a portion of the tax increment of the zone
be used for the improvement or construction of related facilities
or for affordable housing;
(B) generates school district taxes that are paid
into a tax increment fund created under Chapter 311, Tax Code; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(6) [the total dollar amount of any exemptions granted
under Section 11.251 or 11.253, Tax Code;
[(7)] the difference between the comptroller's
estimate of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(7) [(8)] the portion of the appraised value of
residence homesteads of individuals who receive a tax limitation
under Section 11.26, Tax Code, on which school district taxes are
not imposed in the year that is the subject of the study, calculated
as if the residence homesteads were appraised at the full value
required by law;
(8) [(9)] a portion of the market value of property
not otherwise fully taxable by the district at market value because
of action required by statute or the constitution of this state[,
other than Section 11.311, Tax Code,] that, if the tax rate adopted
by the district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted;
(9) [(10) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
[(11)] the appraised value of property the collection
of delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(10) [(12)] the portion of the appraised value of
property the collection of delinquent taxes on which is deferred
under Section 33.065, Tax Code;
(11) [(13)] the amount by which the market value of a
residence homestead to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section; and
(12) [(14)] the total dollar amount of any exemptions
granted under Section 11.35, Tax Code.
(i) If the comptroller determines in the study that the
market value of property in a school district as determined by the
appraisal district that appraises property for the school district,
less the total of the amounts and values listed in Subsection (d) as
determined by that appraisal district, is valid, the comptroller,
in determining the taxable value of property in the school district
under Subsection (d), shall for purposes of Subsection (d)(11)
[(d)(13)] subtract from the market value as determined by the
appraisal district of residence homesteads to which Section 23.23,
Tax Code, applies the amount by which that amount exceeds the
appraised value of those properties as calculated by the appraisal
district under Section 23.23, Tax Code. If the comptroller
determines in the study that the market value of property in a
school district as determined by the appraisal district that
appraises property for the school district, less the total of the
amounts and values listed in Subsection (d) as determined by that
appraisal district, is not valid, the comptroller, in determining
the taxable value of property in the school district under
Subsection (d), shall for purposes of Subsection (d)(11) [(d)(13)]
subtract from the market value as estimated by the comptroller of
residence homesteads to which Section 23.23, Tax Code, applies the
amount by which that amount exceeds the appraised value of those
properties as calculated by the appraisal district under Section
23.23, Tax Code.
SECTION 49. Section 503.038(a), Transportation Code, is
amended to read as follows:
(a) The department may cancel a dealer's general
distinguishing number if the dealer:
(1) falsifies or forges a title document, including an
affidavit making application for a certified copy of a title;
(2) files a false or forged tax document, including a
sales tax affidavit;
(3) fails to take assignment of any basic evidence of
ownership, including a certificate of title or manufacturer's
certificate, for a vehicle the dealer acquires;
(4) fails to assign any basic evidence of ownership,
including a certificate of title or manufacturer's certificate, for
a vehicle the dealer sells;
(5) uses or permits the use of a metal dealer's license
plate or a dealer's temporary tag on a vehicle that the dealer does
not own or control or that is not in stock and offered for sale;
(6) makes a material misrepresentation in an
application or other information filed with the department;
(7) fails to maintain the qualifications for a general
distinguishing number;
(8) fails to provide to the department within 30 days
after the date of demand by the department satisfactory and
reasonable evidence that the person is regularly and actively
engaged in business as a wholesale or retail dealer;
(9) has been licensed for at least 12 months and has
not assigned at least five vehicles during the previous 12-month
period;
(10) [has failed to demonstrate compliance with
Sections 23.12, 23.121, and 23.122, Tax Code;
[(11)] uses or allows the use of the dealer's general
distinguishing number or the location for which the general
distinguishing number is issued to avoid the requirements of this
chapter;
(11) [(12)] misuses or allows the misuse of a
temporary tag authorized under this chapter;
(12) [(13)] refuses to show on a buyer's temporary tag
the date of sale or other reasonable information required by the
department; or
(13) [(14)] otherwise violates this chapter or a rule
adopted under this chapter.
SECTION 50. (a) The following provisions of the Tax Code
are repealed:
(1) Section 6.24(c);
(2) Sections 11.01(c), (d), and (e);
(3) Section 11.11(h);
(4) Section 11.14;
(5) Section 11.141;
(6) Section 11.145;
(7) Section 11.15;
(8) Section 11.16;
(9) Section 11.161;
(10) Section 11.23(f);
(11) Section 11.25;
(12) Section 11.251;
(13) Section 11.252;
(14) Section 11.253;
(15) Section 11.254;
(16) Section 11.27(a-1);
(17) Section 11.271;
(18) Section 11.311;
(19) Section 11.315;
(20) Section 11.33;
(21) Section 11.437;
(22) Section 11.4391;
(23) Section 21.02;
(24) Section 21.021;
(25) Section 21.03;
(26) Section 21.031;
(27) Section 21.04;
(28) Section 21.05;
(29) Section 21.055;
(30) Section 21.07;
(31) Section 21.09;
(32) Section 21.10;
(33) Sections 22.01(e), (i), (j), (k), and (m);
(34) Sections 22.04(b), (c), and (d);
(35) Sections 22.07(a) and (b);
(36) Section 23.121;
(37) Section 23.1211;
(38) Section 23.122;
(39) Section 23.123;
(40) Section 23.124;
(41) Section 23.1241;
(42) Section 23.1242;
(43) Section 23.1243;
(44) Section 23.125;
(45) Section 23.126;
(46) Section 23.127;
(47) Section 23.128;
(48) Section 23.129;
(49) Section 23.24;
(50) Chapter 24;
(51) Section 25.25(c-1);
(52) Section 33.11;
(53) Subchapter B, Chapter 33;
(54) Section 41.413(a);
(55) Section 41.47(c-1);
(56) Section 42.03; and
(57) Section 42.05.
(b) Sections 49.302(b) and 49.304, Education Code, are
repealed.
(c) Section 89.003(c), Finance Code, is repealed.
(d) Sections 379B.011(c), (d), and (e), Local Government
Code, are repealed.
SECTION 51. Sections 23.121, 23.122, 23.123, 23.124,
23.125, 23.126, 23.127, and 23.128, Tax Code, as repealed by this
Act, apply only to an offense committed before the effective date of
this Act. An offense committed before the effective date of this Act
is governed by the law in effect on the date the offense was
committed, and the former law is continued in effect for that
purpose. For purposes of this subsection, an offense was committed
before the effective date of this Act if any element of the offense
occurred before that date.
SECTION 52. The changes made to Section 25.25, Tax Code, by
this Act apply only to a motion to correct an appraisal roll filed
on or after the effective date of this Act. A motion to correct an
appraisal roll filed before the effective date of this Act is
governed by the law in effect on the date the motion was filed, and
the former law is continued in effect for that purpose.
SECTION 53. Sections 403.302(d) and (i), Government Code, as
amended by this Act, apply only to the determination of the total
taxable value of property in a school district for a tax year that
begins on or after the effective date of this Act. The determination
of the total taxable value of property in a school district for a
tax year that begins before the effective date of this Act is
governed by the law in effect immediately before that date, and the
former law is continued in effect for that purpose.
SECTION 54. Notwithstanding the changes in law made by this
Act to the provisions of the Tax Code, Agriculture Code, Business &
Commerce Code, Finance Code, and Transportation Code amended by
this Act and the repeal by this Act of provisions of the Tax Code and
Finance Code, each of those provisions, as it existed immediately
before January 1, 2024, is continued in effect for the purpose of
the levy and collection of an ad valorem tax on tangible personal
property imposed:
(1) before January 1, 2024; or
(2) pursuant to Section 1(b-1), Article VIII, Texas
Constitution.
SECTION 55. This Act takes effect January 1, 2024, but only
if the constitutional amendment proposed by the 88th Legislature,
Regular Session, 2023, exempting tangible personal property from ad
valorem taxation is approved by the voters. If that amendment is
not approved by the voters, this Act has no effect.