By: Sims S.B. No. 1487
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the ad valorem taxation of cotton.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 11.251, Tax Code, is amended by adding
1-4 Subsection (k) to read as follows:
1-5 (k) Property that meets the requirements of Article VIII,
1-6 Sections 1-j(a)(1) and (2), of the Texas Constitution and that is
1-7 transported outside of this state not later than 175 days after the
1-8 date the person who owns it on January 1 acquired it or imported it
1-9 into this state is freeport goods regardless of whether the person
1-10 who owns it on January 1 is the person who transports it outside of
1-11 this state.
1-12 SECTION 2. Subsection (b), Section 11.43, Tax Code, is
1-13 amended to read as follows:
1-14 (b) Except as provided by Subsection (c) and Section 11.436
1-15 <of this section>, a person required to apply for an exemption must
1-16 apply each year the person <he> claims entitlement to the
1-17 exemption.
1-18 SECTION 3. Subchapter C, Chapter 11, Tax Code, is amended by
1-19 adding Section 11.436 to read as follows:
1-20 Sec. 11.436. EXEMPTION FOR COTTON STORED IN WAREHOUSE.
1-21 (a) A person who operates a warehouse used primarily for the
1-22 storage of cotton for transportation outside of this state may
1-23 apply for an exemption under Section 11.251 for cotton stored in
1-24 the warehouse on behalf of all the owners of the cotton. An
2-1 exemption granted under this section applies to all cotton stored
2-2 in the warehouse that is eligible to be exempt under Section
2-3 11.251. Cotton that is stored in a warehouse covered by an
2-4 exemption granted under this section and that is transported
2-5 outside of this state is presumed to have been transported outside
2-6 of this state within the time permitted by Article VIII, Section
2-7 1-j, of the Texas Constitution for cotton to qualify for an
2-8 exemption under that section.
2-9 (b) An exemption granted under this section, once allowed,
2-10 need not be claimed in subsequent years, and except as provided by
2-11 Section 11.43(e), the exemption applies to cotton stored in the
2-12 warehouse until the warehouse changes ownership or the cotton's
2-13 qualification for the exemption changes. The chief appraiser may,
2-14 however, require a person who operates a warehouse for which an
2-15 exemption for cotton has been granted in a prior year to file a new
2-16 application to confirm the cotton's current qualification for the
2-17 exemption by delivering a written notice that a new application is
2-18 required, accompanied by an appropriate application form, to the
2-19 person.
2-20 SECTION 4. Section 22.01, Tax Code, is amended by adding
2-21 Subsection (e) to read as follows:
2-22 (e) Notwithstanding Subsections (a) and (b), a person is not
2-23 required to render for taxation cotton that:
2-24 (1) the person manages and controls as a fiduciary;
2-25 (2) is stored in a warehouse for which an exemption
2-26 for cotton has been granted under Section 11.436; and
2-27 (3) the person intends to transport outside of the
3-1 state within the time permitted by Article VIII, Section 1-j, of
3-2 the Texas Constitution for cotton to qualify for an exemption under
3-3 that section.
3-4 SECTION 5. Section 22.04, Tax Code, is amended by adding
3-5 Subsection (c) to read as follows:
3-6 (c) This section does not apply to a warehouse for which an
3-7 exemption for cotton has been granted under Section 11.436.
3-8 SECTION 6. This Act takes effect January 1, 1994.
3-9 SECTION 7. The importance of this legislation and the
3-10 crowded condition of the calendars in both houses create an
3-11 emergency and an imperative public necessity that the
3-12 constitutional rule requiring bills to be read on three several
3-13 days in each house be suspended, and this rule is hereby suspended.