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House Bill 621 |
House Author: Chavez |
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Effective: 1-1-08 |
Senate Sponsor: Duncan et al. |
House Bill 621 amends the Tax Code and the Government Code to add an exemption from ad valorem taxation for "goods-in-transit." The exemption applies to tangible personal property that is acquired in or imported into Texas, detained at a location in Texas in which the property owner does not have a direct or indirect ownership interest, used for assembling, storing, manufacturing, processing, or fabricating purposes, and transported to another location in Texas or out of state not later than 175 days after the property was acquired in or imported into Texas. "Goods-in-transit" 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. House Bill 621 sets out provisions relating to the calculation of the exemption by the chief appraiser. The bill provides that the exemption applies to all taxing units unless the governing body of a taxing unit takes specified action to tax the exempt property, and the property remains subject to ad valorem taxation by such a taxing unit until the taxing unit rescinds or repeals the action to tax the property. House Bill 621 provides that a property owner who receives the exemption for "goods-in-transit" is not eligible to receive certain other exemptions for tangible personal property.