SRC-PNG S.B. 1462 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1462
76R4491 SMH-DBy: Cain
Finance
4/9/1999
As Filed


DIGEST 

Currently, under Texas law, the courts have ruled that the statutory law
requiring a person to render, for the purposes of ad valorem taxation, all
business personal property was merely directory not mandatory.  This bill
would provide a tax exemption on business personal property rendered at the
appraisal district and would create incentives for property owners to
render all business personal property. 

PURPOSE

As proposed, S.B. 1462 provides a tax exemption on business personal
property rendered at the appraisal district and creates incentives for
property owners to render all business personal property. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 11B, Tax Code, by adding Section 11.147, as
follows: 

Sec.  11.147.  INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY RENDERED FOR
TAXATION.   Sets forth the tangible personal property for which a person is
entitled to an exemption from taxation by each taxing unit of $10,000 of
the total appraised value. 

SECTION 2. Amends Section 11.43(a), Tax Code, to make conforming and
nonsubstantive changes.   

SECTION 3. Amends Chapter 22B, Tax Code, by adding Section 22.231, as
follows: 

Sec.  22.231.  REQUIREMENT TO DELIVER RENDITION STATEMENT OR PROPERTY
REPORT; INJUNCTION.  Provides that a requirement under this chapter to
deliver a rendition statement or property report to a chief appraiser is
mandatory.  Authorizes the chief appraiser to bring suit for an injunction
requiring the person to deliver the required statement or report.   

SECTION 4.  Amends Section 41.43, Tax Code, by amending Subsection (a) and
adding Subsection (d), to provide that if the property owner failed to
timely deliver a rendition statement or property report for a property that
is the subject of the protest as required by Chapter 22, the property owner
has the burden of establishing the value of the property by a preponderance
of the evidence at the hearing, and if the property owner fails to meet the
standard provided by Subdivision (1), the protest shall be determined in
favor of the appraisal district.  Makes conforming and nonsubstantive
changes. 

SECTION 5. Amends Section 42.29, Tax Code, by adding Subsection (c), to
prohibit a property owner from being awarded attorney's fees if the
property owner failed to timely deliver a rendition statement or property
report as required by Chapter 22, notwithstanding Subsection (a). 

SECTION 6. Effective date: January 1, 2000.  Makes application of this Act
prospective.   Provides  that SECTIONS 1 and 2 of this Act take effect only
if the constitutional amendment to authorize tax incentives to encourage
the voluntary rendition of commercial tangible personal property for
taxation is approved by the voters. 

SECTION 7. Emergency clause.