Bill Text: TX SB1005 | 2019-2020 | 86th 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: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2019-03-26 - Left pending in committee [SB1005 Detail]
Download: Texas-2019-SB1005-Introduced.html
| 86R2677 TJB-D | ||
| By: Bettencourt, Creighton, Paxton | S.B. No. 1005 | |
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| 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 | ||
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| 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 [ |
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| 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 [ |
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| 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 [ |
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| 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, 2020, but only | ||
| if the constitutional amendment proposed by the 86th Legislature, | ||
| Regular Session, 2019, 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. | ||
