By Allen H.B. No. 3246
76R8928 JD-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to appraisal of heavy equipment 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 23.1241(a)(2), Tax Code, is amended to
1-6 read as follows:
1-7 (2) "Dealer's heavy equipment inventory" means all
1-8 items of heavy equipment that a dealer holds for sale at retail.
1-9 The term includes items of heavy equipment that are leased but
1-10 subject to a purchase option by the lessee.
1-11 SECTION 2. Section 23.1241(b), Tax Code, is amended to read
1-12 as follows:
1-13 (b) For the purpose of the computation of property tax:
1-14 (1) [,] the market value of a dealer's heavy
1-15 equipment inventory on January 1 is the total annual sales, less
1-16 sales to dealers, fleet transactions, and subsequent sales, for the
1-17 12-month period corresponding to the preceding tax year, divided by
1-18 12; and
1-19 (2) a sale is considered to occur when ownership of an
1-20 item of heavy equipment is transferred from the dealer to the
1-21 purchaser.
1-22 SECTION 3. This Act takes effect January 1, 2000, and
1-23 applies to the appraisal of heavy equipment for ad valorem tax
1-24 purposes for a tax year that begins on or after that date.
2-1 SECTION 4. The importance of this legislation and the
2-2 crowded condition of the calendars in both houses create an
2-3 emergency and an imperative public necessity that the
2-4 constitutional rule requiring bills to be read on three several
2-5 days in each house be suspended, and this rule is hereby suspended.