Bill Text: TX SB1422 | 2021-2022 | 87th Legislature | Introduced


Bill Title: Relating to the number of days that certain tangible personal property that is exempt from ad valorem taxation due to its location in this state for a temporary period may be located in this state for the purpose of qualifying for the tax exemption.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-03-18 - Referred to Finance [SB1422 Detail]

Download: Texas-2021-SB1422-Introduced.html
  87R854 TJB-D
 
  By: Bettencourt S.B. No. 1422
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the number of days that certain tangible personal
  property that is exempt from ad valorem taxation due to its location
  in this state for a temporary period may be located in this state
  for the purpose of qualifying for the tax exemption.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 11.251(e), (g), and (k), Tax Code, are
  amended to read as follows:
         (e)  In determining the market value of freeport goods that
  in the preceding year were assembled, manufactured, repaired,
  maintained, processed, or fabricated in this state or used by the
  person who acquired or imported the property in the repair or
  maintenance of aircraft operated by a certificated air carrier, the
  chief appraiser shall exclude the cost of equipment, machinery, or
  materials that entered into and became component parts of the
  freeport goods but were not themselves freeport goods or that were
  not transported outside the state before the expiration of 365
  [175] days, or, if applicable, the greater number of days adopted by
  the taxing unit as authorized by Subsection (l), after they were
  brought into this state by the property owner or acquired by the
  property owner in this state. For component parts held in bulk, the
  chief appraiser may use the average length of time a component part
  was held in this state by the property owner during the preceding
  year in determining whether the component parts were transported
  out of this state before the expiration of 365 [175] days or, if
  applicable, the greater number of days adopted by the taxing unit as
  authorized by Subsection (l).
         (g)  If the property owner or the chief appraiser
  demonstrates that the method provided by Subsection (d)
  significantly understates or overstates the market value of the
  property qualified for an exemption under Subsection (b) in the
  current year, the chief appraiser shall determine the market value
  of the freeport goods to be exempt by determining, according to the
  property owner's records and any other available information, the
  market value of those freeport goods owned by the property owner on
  January 1 of the current year, excluding the cost of equipment,
  machinery, or materials that entered into and became component
  parts of the freeport goods but were not themselves freeport goods
  or that were not transported outside the state before the
  expiration of 365 [175] days, or, if applicable, the greater number
  of days adopted by the taxing unit as authorized by Subsection (l),
  after they were brought into this state by the property owner or
  acquired by the property owner in this state.
         (k)  Property that meets the requirements of Article VIII,
  Sections 1-j(a)(1) and (2), of the Texas Constitution and that is
  transported outside of this state not later than 365 [175] days, or,
  if applicable, the greater number of days adopted by the taxing unit
  as authorized by Subsection (l), after the date the person who owns
  it on January 1 acquired it or imported it into this state is
  freeport goods regardless of whether the person who owns it on
  January 1 is the person who transports it outside of this state.
         SECTION 2.  This Act applies only to a tax year beginning on
  or after the effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2022, but only
  if the constitutional amendment proposed by the 87th Legislature,
  Regular Session, 2021, to extend the number of days that certain
  tangible personal property that is exempt from ad valorem taxation
  due to its location in this state for a temporary period may be
  located in this state for the purpose of qualifying for the tax
  exemption is approved by the voters. If that amendment is not
  approved by the voters, this Act has no effect.
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