1-1 By: Sims S.B. No. 1487
1-2 (In the Senate - Filed May 7, 1993; May 10, 1993, read first
1-3 time and referred to Committee on Finance; May 10, 1993, reported
1-4 favorably by the following vote: Yeas 10, Nays 0; May 10, 1993,
1-5 sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Montford x
1-9 Turner x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Ellis x
1-14 Haley x
1-15 Moncrief x
1-16 Parker x
1-17 Ratliff x
1-18 Sims x
1-19 Truan x
1-20 Zaffirini x
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the ad valorem taxation of cotton.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Section 11.251, Tax Code, is amended by adding
1-26 Subsection (k) to read as follows:
1-27 (k) Property that meets the requirements of Article VIII,
1-28 Sections 1-j(a)(1) and (2), of the Texas Constitution and that is
1-29 transported outside of this state not later than 175 days after the
1-30 date the person who owns it on January 1 acquired it or imported it
1-31 into this state is freeport goods regardless of whether the person
1-32 who owns it on January 1 is the person who transports it outside of
1-33 this state.
1-34 SECTION 2. Subsection (b), Section 11.43, Tax Code, is
1-35 amended to read as follows:
1-36 (b) Except as provided by Subsection (c) and Section 11.436
1-37 <of this section>, a person required to apply for an exemption must
1-38 apply each year the person <he> claims entitlement to the
1-39 exemption.
1-40 SECTION 3. Subchapter C, Chapter 11, Tax Code, is amended by
1-41 adding Section 11.436 to read as follows:
1-42 Sec. 11.436. EXEMPTION FOR COTTON STORED IN WAREHOUSE.
1-43 (a) A person who operates a warehouse used primarily for the
1-44 storage of cotton for transportation outside of this state may
1-45 apply for an exemption under Section 11.251 for cotton stored in
1-46 the warehouse on behalf of all the owners of the cotton. An
1-47 exemption granted under this section applies to all cotton stored
1-48 in the warehouse that is eligible to be exempt under Section
1-49 11.251. Cotton that is stored in a warehouse covered by an
1-50 exemption granted under this section and that is transported
1-51 outside of this state is presumed to have been transported outside
1-52 of this state within the time permitted by Article VIII, Section
1-53 1-j, of the Texas Constitution for cotton to qualify for an
1-54 exemption under that section.
1-55 (b) An exemption granted under this section, once allowed,
1-56 need not be claimed in subsequent years, and except as provided by
1-57 Section 11.43(e), the exemption applies to cotton stored in the
1-58 warehouse until the warehouse changes ownership or the cotton's
1-59 qualification for the exemption changes. The chief appraiser may,
1-60 however, require a person who operates a warehouse for which an
1-61 exemption for cotton has been granted in a prior year to file a new
1-62 application to confirm the cotton's current qualification for the
1-63 exemption by delivering a written notice that a new application is
1-64 required, accompanied by an appropriate application form, to the
1-65 person.
1-66 SECTION 4. Section 22.01, Tax Code, is amended by adding
1-67 Subsection (e) to read as follows:
1-68 (e) Notwithstanding Subsections (a) and (b), a person is not
2-1 required to render for taxation cotton that:
2-2 (1) the person manages and controls as a fiduciary;
2-3 (2) is stored in a warehouse for which an exemption
2-4 for cotton has been granted under Section 11.436; and
2-5 (3) the person intends to transport outside of the
2-6 state within the time permitted by Article VIII, Section 1-j, of
2-7 the Texas Constitution for cotton to qualify for an exemption under
2-8 that section.
2-9 SECTION 5. Section 22.04, Tax Code, is amended by adding
2-10 Subsection (c) to read as follows:
2-11 (c) This section does not apply to a warehouse for which an
2-12 exemption for cotton has been granted under Section 11.436.
2-13 SECTION 6. This Act takes effect January 1, 1994.
2-14 SECTION 7. The importance of this legislation and the
2-15 crowded condition of the calendars in both houses create an
2-16 emergency and an imperative public necessity that the
2-17 constitutional rule requiring bills to be read on three several
2-18 days in each house be suspended, and this rule is hereby suspended.
2-19 * * * * *
2-20 Austin,
2-21 Texas
2-22 May 10, 1993
2-23 Hon. Bob Bullock
2-24 President of the Senate
2-25 Sir:
2-26 We, your Committee on Finance to which was referred S.B. No. 1487,
2-27 have had the same under consideration, and I am instructed to
2-28 report it back to the Senate with the recommendation that it do
2-29 pass and be printed.
2-30 Montford,
2-31 Chairman
2-32 * * * * *
2-33 WITNESSES
2-34 FOR AGAINST ON
2-35 ___________________________________________________________________
2-36 Name: H. F. Hassett x
2-37 Representing: Port City Compress & Waste Co
2-38 City: Houston
2-39 -------------------------------------------------------------------
2-40 Name: H. A. (Bob) Poteet, Exec. Vice Pres. x
2-41 Representing: Texas Cotton Association
2-42 City: Dallas
2-43 -------------------------------------------------------------------
2-44 Name: Durwood Tucker x
2-45 Representing: Texas Farm Bureau
2-46 City: Austin
2-47 -------------------------------------------------------------------
2-48 Name: Tony Williams, Exec. Vice Pres. x
2-49 Representing: Texas Cotton Ginners Assn
2-50 City: Austin
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