By Horn H.B. No. 495
Substitute the following for H.B. No. 495:
By Craddick C.S.H.B. No. 495
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the appraisal of an inventory for ad valorem tax
1-3 purposes.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 23.12(a), Tax Code, is amended to read as
1-6 follows:
1-7 (a) Except as provided by Sections 23.12A and 23.12D of this
1-8 code, the market value of [an] a personal property inventory is the
1-9 cost to the owner of acquiring the property, plus, in the case of a
1-10 manufacturer, the cost of putting the property in its current
1-11 condition, less accrued physical, functional, and economic
1-12 obsolescence. The market value of an inventory consisting of [the
1-13 price for which it would sell as a unit to a purchaser who would
1-14 continue the business. An inventory shall include] residential
1-15 real property which has never been occupied as a residence and is
1-16 held for sale in the ordinary course of a trade or business,
1-17 provided that the residential real property remains unoccupied, is
1-18 not leased or rented, and produces no income is the price for which
1-19 it would sell as a unit to a purchaser who would continue the
1-20 business.
1-21 SECTION 2. This Act takes effect January 1, 1998. The
1-22 change in law made by this Act applies only to an appraisal of an
1-23 inventory for ad valorem tax purposes for a tax year that begins on
1-24 or after the effective date of this Act. The appraisal of an
2-1 inventory for ad valorem tax purposes for a tax year that began
2-2 before the effective date of this Act is governed by the law in
2-3 effect when the appraisal of the inventory was made, and the former
2-4 law is continued in effect for that purpose.
2-5 SECTION 3. The importance of this legislation and the
2-6 crowded condition of the calendars in both houses create an
2-7 emergency and an imperative public necessity that the
2-8 constitutional rule requiring bills to be read on three several
2-9 days in each house be suspended, and this rule is hereby suspended.