By Gutierrez H.B. No. 453
76R688 GJH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the appraisal for ad valorem taxation of an inventory
1-3 of commercial real property.
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 23.121, 23.1241, 23.12D,
1-8 and 23.127, the market value of an inventory is the price for which
1-9 it would sell as a unit to a purchaser who would continue the
1-10 business. An inventory shall include residential real property
1-11 which has never been occupied as a residence and is held for sale
1-12 in the ordinary course of a trade or business, provided that the
1-13 residential real property remains unoccupied, is not leased or
1-14 rented, and produces no income. An inventory also includes real
1-15 property that:
1-16 (1) has been substantially developed or improved in a
1-17 manner that makes the property suitable for industrial or
1-18 commercial use, other than agricultural use;
1-19 (2) was vacant during the development or improvement
1-20 and remains vacant;
1-21 (3) has been publicly offered for sale in the ordinary
1-22 course of the owner's business and is available for purchase or is
1-23 under a contract for purchase; and
1-24 (4) is not leased or rented and does not produce
2-1 income.
2-2 SECTION 2. This Act takes effect January 1, 2000, and
2-3 applies only to ad valorem taxes imposed on or after that date.
2-4 SECTION 3. The importance of this legislation and the
2-5 crowded condition of the calendars in both houses create an
2-6 emergency and an imperative public necessity that the
2-7 constitutional rule requiring bills to be read on three several
2-8 days in each house be suspended, and this rule is hereby suspended.