Bill Text: TX SB1013 | 2019-2020 | 86th Legislature | Comm Sub
Bill Title: Relating to the calculation of the penalty for filing a late application for certain ad valorem tax exemptions and allocations.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2019-05-14 - Committee report sent to Calendars [SB1013 Detail]
Download: Texas-2019-SB1013-Comm_Sub.html
86R21834 JES-F | ||
By: Hughes | S.B. No. 1013 | |
(Murphy) | ||
Substitute the following for S.B. No. 1013: No. |
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relating to the calculation of the penalty for filing a late | ||
application for certain ad valorem tax exemptions and allocations. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 11.4391, Tax Code, is amended by | ||
amending Subsection (b) and adding Subsection (b-1) to read as | ||
follows: | ||
(b) Except as provided by Subsection (b-1), if [ |
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application is approved, the property owner is liable to each | ||
taxing unit allowing the exemption for a penalty in an amount equal | ||
to 10 percent of the difference between the amount of tax imposed by | ||
the taxing unit on the inventory or property, a portion of which | ||
consists of freeport goods, and the amount that would otherwise | ||
have been imposed up to a maximum penalty of 10 percent of the tax | ||
imposed with the exemption. | ||
(b-1) If the total amount of the penalties for which a | ||
property owner is liable under Subsection (b) to the taxing units | ||
allowing the exemption is less than $5,000, the amount of the | ||
penalty for which the owner is liable to each taxing unit allowing | ||
the exemption is computed by multiplying $5,000 by a fraction, the | ||
numerator of which is the amount of the penalty to which that taxing | ||
unit is entitled as calculated under that subsection and the | ||
denominator of which is the total amount of the penalties to which | ||
the taxing units allowing the exemption are entitled as calculated | ||
under that subsection. | ||
SECTION 2. Section 21.10, Tax Code, is amended by amending | ||
Subsection (b) and adding Subsection (b-1) to read as follows: | ||
(b) Except as provided by Subsection (b-1), if [ |
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application is approved, the property owner is liable to each | ||
taxing unit for a penalty in an amount equal to 10 percent of the | ||
difference between the amount of tax imposed by the taxing unit on | ||
the property without the allocation and the amount of tax imposed on | ||
the property with the allocation up to a maximum penalty of 10 | ||
percent of the tax imposed with the allocation. | ||
(b-1) If the total amount of the penalties for which a | ||
property owner is liable under Subsection (b) to the taxing units | ||
that tax the property is less than $5,000, the amount of the penalty | ||
for which the owner is liable to each taxing unit that taxes the | ||
property is computed by multiplying $5,000 by a fraction, the | ||
numerator of which is the amount of the penalty to which that taxing | ||
unit is entitled as calculated under that subsection and the | ||
denominator of which is the total amount of the penalties to which | ||
the taxing units that tax the property are entitled as calculated | ||
under that subsection. | ||
SECTION 3. Section 11.4391, Tax Code, as amended by this | ||
Act, applies only to an application for an exemption for freeport | ||
goods under Section 11.251, Tax Code, filed on or after the | ||
effective date of this Act. | ||
SECTION 4. Section 21.10, Tax Code, as amended by this Act, | ||
applies only to an application for an allocation under Section | ||
21.09, Tax Code, filed on or after the effective date of this Act. | ||
SECTION 5. This Act takes effect September 1, 2019. |