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.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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 [If] the
  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 [If] the
  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.
feedback