Bill Text: TX SB1439 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to the ad valorem taxation of tangible personal property held or used for the production of income by related business entities.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Vetoed) 2023-06-18 - Vetoed by the Governor [SB1439 Detail]
Download: Texas-2023-SB1439-Enrolled.html
S.B. No. 1439 |
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relating to the ad valorem taxation of tangible personal property | ||
held or used for the production of income by related business | ||
entities. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 11.145, Tax Code, is amended to read as | ||
follows: | ||
Sec. 11.145. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY | ||
HAVING VALUE OF LESS THAN $2,500. (a) In this section: | ||
(1) "Related business entity" means a business entity | ||
that: | ||
(A) engages in a common business enterprise with | ||
at least one other business entity; and | ||
(B) owns tangible personal property that: | ||
(i) is held or used for the production of | ||
income as part of the common business enterprise; and | ||
(ii) is located at the same physical | ||
address that tangible personal property owned by at least one other | ||
business entity engaged in the common business enterprise is | ||
located. | ||
(2) "Unified business enterprise" means a common | ||
business enterprise composed of more than one related business | ||
entity. | ||
(b) Subject to Subsection (d), a [ |
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an exemption from taxation of the tangible personal property the | ||
person owns that is held or used for the production of income if | ||
that property has a taxable value of less than $2,500. | ||
(c) [ |
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applies to each separate taxing unit in which a person holds or uses | ||
tangible personal property for the production of income. | ||
(d) For[ |
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[ |
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unit that is owned by a person is: | ||
(1) aggregated to determine taxable value; and | ||
(2) if the person is a related business entity, | ||
aggregated with the property described by that subsection in the | ||
taxing unit that is owned by each other related business enterprise | ||
that composes the same unified business enterprise to determine | ||
taxable value for the entity. | ||
(e) A chief appraiser may investigate a business entity to | ||
determine whether the entity: | ||
(1) is a related business entity; and | ||
(2) has aggregated tangible personal property as | ||
provided by Subsection (d)(2). | ||
SECTION 2. Section 22.01, Tax Code, is amended by amending | ||
Subsections (a), (c-1), and (f) and adding Subsection (n) 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 address [ |
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of the property; and | ||
(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. | ||
(c-1) In this section: | ||
(1) "Related business entity" and "unified business | ||
enterprise" have the meanings assigned by Section 11.145. | ||
(2) "Secured party" has the meaning assigned by | ||
Section 9.102, Business & Commerce Code. | ||
(3) [ |
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assigned by Section 1.201, Business & Commerce Code. | ||
(f) Notwithstanding 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 address [ |
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of the property. | ||
(n) A rendition statement of a related business entity must | ||
contain the information required by Subsection (a) or (f), as | ||
applicable, stated for each related business entity that composes | ||
the unified business enterprise of which the related business | ||
entity that is the subject of the rendition is a part. | ||
SECTION 3. Section 22.24(c), Tax Code, is amended to read as | ||
follows: | ||
(c) The comptroller may prescribe or approve different | ||
forms for different kinds of property but shall ensure that each | ||
form requires a property owner to furnish the information necessary | ||
to identify the property and to determine its ownership, | ||
taxability, and situs. Each form must include a box that the | ||
property owner may check to permit the property owner to affirm that | ||
the information contained in the most recent rendition statement | ||
filed by the property owner in a prior tax year is accurate with | ||
respect to the current tax year in accordance with Section | ||
22.01(l). Each form must include a box that a property owner that is | ||
a related business entity, as defined by Section 11.145, must check | ||
to identify the owner as a related business entity. A form may not | ||
require but may permit a property owner to furnish information not | ||
specifically required by this chapter to be reported. In addition, | ||
a form prescribed or approved under this subsection must contain | ||
the following statement in bold type: "If you make a false statement | ||
on this form, you could be found guilty of a Class A misdemeanor or a | ||
state jail felony under Section 37.10, Penal Code." | ||
SECTION 4. The changes in law made by this Act apply only to | ||
an ad valorem tax year that begins on or after the effective date of | ||
this Act. | ||
SECTION 5. This Act takes effect January 1, 2024. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1439 passed the Senate on | ||
April 12, 2023, by the following vote: Yeas 29, Nays 2. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1439 passed the House on | ||
May 19, 2023, by the following vote: Yeas 139, Nays 4, | ||
two present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |