Bill Text: TX SB326 | 2011-2012 | 82nd Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the exemption from ad valorem taxation of certain tangible personal property stored temporarily at a location in this state.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Engrossed - Dead) 2011-05-20 - Committee report sent to Calendars [SB326 Detail]
Download: Texas-2011-SB326-Comm_Sub.html
Bill Title: Relating to the exemption from ad valorem taxation of certain tangible personal property stored temporarily at a location in this state.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Engrossed - Dead) 2011-05-20 - Committee report sent to Calendars [SB326 Detail]
Download: Texas-2011-SB326-Comm_Sub.html
By: Duncan, West | S.B. No. 326 | |
(Hilderbran) | ||
|
||
|
||
relating to the exemption from ad valorem taxation of certain | ||
tangible personal property stored temporarily at a location in this | ||
state. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subsection (a), Section 11.253, Tax Code, is | ||
amended by amending Subdivision (2) and adding Subdivisions (5) and | ||
(6) to read as follows: | ||
(2) "Goods-in-transit" means tangible personal | ||
property that: | ||
(A) is acquired in or imported into this state to | ||
be forwarded to another location in this state or outside this | ||
state; | ||
(B) is stored under a contract of bailment by a | ||
public warehouse operator [ |
||
warehouse facilities [ |
||
way owned or controlled by [ |
||
property [ |
||
for the account of [ |
||
|
||
imported the property; | ||
(C) is transported to another location in this | ||
state or outside this state not later than 175 days after the date | ||
the person acquired the property in or imported the property into | ||
this state; and | ||
(D) does not include oil, natural gas, petroleum | ||
products, aircraft, dealer's motor vehicle inventory, dealer's | ||
vessel and outboard motor inventory, dealer's heavy equipment | ||
inventory, or retail manufactured housing inventory. | ||
(5) "Bailee" and "warehouse" have the meanings | ||
assigned by Section 7.102, Business & Commerce Code. | ||
(6) "Public warehouse operator" means a person that: | ||
(A) is both a bailee and a warehouse; and | ||
(B) stores under a contract of bailment, at one | ||
or more public warehouse facilities, tangible personal property | ||
that is owned by other persons solely for the account of those | ||
persons and not for the operator's account. | ||
SECTION 2. Section 11.253, Tax Code, is amended by amending | ||
Subsections (e) and (h) and adding Subsections (j-1) and (j-2) to | ||
read as follows: | ||
(e) In determining the market value of goods-in-transit | ||
that in the preceding year were [ |
||
|
||
exclude the cost of equipment, machinery, or materials that entered | ||
into and became component parts of the goods-in-transit but were | ||
not themselves goods-in-transit or that were not transported to | ||
another location in this state or outside this state before the | ||
expiration of 175 days after the date 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 by the | ||
owner of the component parts during the preceding year at a location | ||
in this state that was not owned by or under the control of the owner | ||
of the component parts in determining whether the component parts | ||
were transported to another location in this state or outside this | ||
state before the expiration of 175 days. | ||
(h) The chief appraiser by written notice delivered to a | ||
property owner who claims an exemption under this section may | ||
require the property owner to provide copies of property records so | ||
the chief appraiser can determine the amount and value of | ||
goods-in-transit and that the location in this state where the | ||
goods-in-transit were detained for storage [ |
||
|
||
by or under the control of the owner of the goods-in-transit. If | ||
the property owner fails to deliver the information requested in | ||
the notice before the 31st day after the date the notice is | ||
delivered to the property owner, the property owner forfeits the | ||
right to claim or receive the exemption for that year. | ||
(j-1) Notwithstanding Subsection (j) or official action | ||
that was taken under that subsection before September 1, 2011, to | ||
tax goods-in-transit exempt under Subsection (b) and not exempt | ||
under other law, a taxing unit may not tax such goods-in-transit in | ||
a tax year that begins on or after January 1, 2012, unless the | ||
governing body of the taxing unit takes action on or after September | ||
1, 2011, in the manner required for official action by the governing | ||
body, to provide for the taxation of the goods-in-transit. The | ||
official action to tax the goods-in-transit must be taken before | ||
January 1 of the first tax year in which the governing body proposes | ||
to tax goods-in-transit. Before acting to tax the exempt property, | ||
the governing body of the taxing unit must conduct a public hearing | ||
as required by Section 1-n(d), Article VIII, Texas Constitution. | ||
If the governing body of a taxing unit provides for the taxation of | ||
the goods-in-transit as provided by this subsection, the exemption | ||
prescribed by Subsection (b) does not apply to that unit. The | ||
goods-in-transit remain subject to taxation by the taxing unit | ||
until the governing body of the taxing unit, in the manner required | ||
for official action, rescinds or repeals its previous action to tax | ||
goods-in-transit or otherwise determines that the exemption | ||
prescribed by Subsection (b) will apply to that taxing unit. | ||
(j-2) Notwithstanding Subsection (j-1), if under Subsection | ||
(j) the governing body of a taxing unit, before September 1, 2011, | ||
took action to provide for the taxation of goods-in-transit and | ||
pledged the taxes imposed on the goods-in-transit for the payment | ||
of a debt of the taxing unit, the tax officials of the taxing unit | ||
may continue to impose the taxes against the goods-in-transit until | ||
the debt is discharged, if cessation of the imposition would impair | ||
the obligation of the contract by which the debt was created. | ||
SECTION 3. Subdivision (2), Subsection (a), Section 11.253, | ||
Tax Code, as amended by this Act, applies only to an ad valorem tax | ||
year that begins on or after January 1, 2012. | ||
SECTION 4. (a) Except as provided by Subsection (b) of | ||
this section, this Act takes effect January 1, 2012. | ||
(b) Section 2 of this Act takes effect September 1, 2011. |