Bill Text: TX SB2289 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to the exemption from ad valorem taxation of equipment or inventory held by a manufacturer of medical or biomedical products to protect the Texas healthcare network and strengthen our medical supply chain.
Spectrum: Bipartisan Bill
Status: (Passed) 2023-06-02 - See remarks for effective date [SB2289 Detail]
Download: Texas-2023-SB2289-Enrolled.html
| S.B. No. 2289 | ||
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| relating to the exemption from ad valorem taxation of equipment or | ||
| inventory held by a manufacturer of medical or biomedical products | ||
| to protect the Texas healthcare network and strengthen our medical | ||
| supply chain. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by | ||
| adding Section 11.36 to read as follows: | ||
| Sec. 11.36. MEDICAL OR BIOMEDICAL PROPERTY. (a) In this | ||
| section: | ||
| (1) "Medical or biomedical property" means tangible | ||
| personal property that is: | ||
| (A) stored, used, or consumed in the | ||
| manufacturing or processing of medical or biomedical products by a | ||
| medical or biomedical manufacturer; or | ||
| (B) intended for use in the diagnosis, cure, | ||
| mitigation, treatment, or prevention of a condition or disease or | ||
| in medical or biomedical research, including the invention, | ||
| development, and dissemination of materials, tools, technologies, | ||
| processes, and similar means for translating and applying medical | ||
| and scientific research for practical applications to advance | ||
| public health, including: | ||
| (i) devices; | ||
| (ii) therapeutics; | ||
| (iii) pharmaceuticals; | ||
| (iv) personal protective equipment; | ||
| (v) tools, apparatuses, instruments, | ||
| implants, or other similar or related component parts or | ||
| accessories; | ||
| (vi) property exempted under Section | ||
| 151.318 from the taxes imposed by Chapter 151; and | ||
| (vii) manufacturing inventories, including | ||
| finished goods. | ||
| (2) "Medical or biomedical manufacturing facility" | ||
| means a facility at which a person conducts manufacturing or | ||
| processing of medical or biomedical products for the purpose of | ||
| development and commercialization of products to advance public | ||
| health. | ||
| (b) A person is entitled to an exemption from taxation of | ||
| medical or biomedical property the person owns or leases that is | ||
| located in a medical or biomedical manufacturing facility that the | ||
| person owns or leases. | ||
| (c) Notwithstanding Section 11.14(c), the governing body of | ||
| a taxing unit may not provide for taxation of medical or biomedical | ||
| property exempted under this section. | ||
| SECTION 2. Section 11.42(d), Tax Code, is amended to read as | ||
| follows: | ||
| (d) A person who acquires property after January 1 of a tax | ||
| year may receive an exemption authorized by Section 11.17, 11.18, | ||
| 11.19, 11.20, 11.21, 11.23, 11.231, [ |
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| applicable portion of that tax year immediately on qualification | ||
| for the exemption. | ||
| SECTION 3. Section 11.43(c), Tax Code, is amended to read as | ||
| follows: | ||
| (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, [ |
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| 11.36, 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. | ||
| SECTION 4. This Act applies only to a tax year that begins | ||
| on or after the effective date of this Act. | ||
| SECTION 5. This Act takes effect January 1, 2024, but only | ||
| if the constitutional amendment proposed by the 88th Legislature, | ||
| Regular Session, 2023, to authorize the legislature to exempt from | ||
| ad valorem taxation equipment or inventory held by a manufacturer | ||
| of medical or biomedical products to protect the Texas healthcare | ||
| network and strengthen our medical supply chain is approved by the | ||
| voters. If that amendment is not approved by the voters, this Act | ||
| has no effect. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I hereby certify that S.B. No. 2289 passed the Senate on | ||
| April 13, 2023, by the following vote: Yeas 26, Nays 4. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| I hereby certify that S.B. No. 2289 passed the House on | ||
| May 18, 2023, by the following vote: Yeas 132, Nays 12, one | ||
| present not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| Approved: | ||
| ______________________________ | ||
| Date | ||
| ______________________________ | ||
| Governor | ||
