By Duncan S.B. No. 563
76R3707 JD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the exemption of personal property from ad valorem
1-3 taxation.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 11.01, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 11.01. REAL [AND TANGIBLE PERSONAL] PROPERTY. (a) All
1-8 real [and tangible personal] property that this state has
1-9 jurisdiction to tax is taxable unless exempt by law.
1-10 (b) This state has jurisdiction to tax real property if
1-11 located in this state.
1-12 (c) For a tax year that begins after December 31, 1999,
1-13 tangible personal property is not taxable.
1-14 (d) On and after January 1, 2000, a provision of this code
1-15 or another law that would otherwise apply to the taxation of
1-16 tangible personal property for a tax year that begins after
1-17 December 31, 1999, has no effect.
1-18 (e) Subsections (c) and (d) do not apply to personal
1-19 property taxable under Section 1(g), Article VIII, Texas
1-20 Constitution. [This state has jurisdiction to tax tangible personal
1-21 property if the property is:]
1-22 [(1) located in this state for longer than a temporary
1-23 period;]
1-24 [(2) temporarily located outside this state and the
2-1 owner resides in this state; or]
2-2 [(3) used continually, whether regularly or
2-3 irregularly, in this state.]
2-4 [(d) Tangible personal property that is operated or located
2-5 exclusively outside this state during the year preceding the tax
2-6 year and on January 1 of the tax year is not taxable in this
2-7 state.]
2-8 SECTION 2. Sections 22.01 and 22.05, Tax Code, are amended
2-9 to read as follows:
2-10 Sec. 22.01. RENDITION GENERALLY. (a) [Except as provided by
2-11 Chapter 24 of this code, a person shall render for taxation all
2-12 tangible personal property used for the production of income that
2-13 he owns or that he manages and controls as a fiduciary on January
2-14 1.]
2-15 [(b)] When required by the chief appraiser, a person shall
2-16 render for taxation any [other] taxable property that the person
2-17 [he] owns or that the person [he] manages and controls as a
2-18 fiduciary on January 1.
2-19 (b) [(c)] A person may render for taxation any property that
2-20 the person [he] owns or that the person [he] manages and controls
2-21 as a fiduciary on January 1, although the person [he] is not
2-22 required to render it by Subsection (a) [or (b) of this section].
2-23 (c) [(d)] A fiduciary who renders property shall indicate
2-24 the person's [his] fiduciary capacity and shall state the name and
2-25 address of the owner.
2-26 [(e) Notwithstanding Subsections (a) and (b), a person is
2-27 not required to render for taxation cotton that:]
3-1 [(1) the person manages and controls as a fiduciary;]
3-2 [(2) is stored in a warehouse for which an exemption
3-3 for cotton has been granted under Section 11.436; and]
3-4 [(3) the person intends to transport outside of the
3-5 state within the time permitted by Article VIII, Section 1-j, of
3-6 the Texas Constitution for cotton to qualify for an exemption under
3-7 that section.]
3-8 Sec. 22.05. RENDITION BY RAILROAD. (a) A [In addition to
3-9 other reports required by Chapter 24 of this code, a] railroad
3-10 corporation shall render the real property the railroad corporation
3-11 owns or possesses as of January 1.
3-12 (b) The rendition shall:
3-13 (1) list all real property other than the property
3-14 covered by Subdivision (2) [of this subsection]; and
3-15 (2) list the number of miles of railroad together with
3-16 the market value per mile, which value shall include right-of-way,
3-17 roadbed, superstructure, and all buildings and improvements used in
3-18 the operation of the railroad[; and]
3-19 [(3) list all personal property as required by Section
3-20 22.01 of this code].
3-21 SECTION 3. Section 23.12(a), Tax Code, is amended to read as
3-22 follows:
3-23 (a) The [Except as provided by Sections 23.121, 23.1241,
3-24 23.124, and 23.127, the] market value of a real property [an]
3-25 inventory is the price for which it would sell as a unit to a
3-26 purchaser who would continue the business. A real property [An]
3-27 inventory includes [shall include] residential real property which
4-1 has never been occupied as a residence and is held for sale in the
4-2 ordinary course of a trade or business, provided that the
4-3 residential real property remains unoccupied, is not leased or
4-4 rented, and produces no income.
4-5 SECTION 4. Section 403.302(d), Government Code, as amended
4-6 by Section 44, Chapter 1039, Section 63, Chapter 1040, and Section
4-7 27, Chapter 1071, Acts of the 75th Legislature, Regular Session,
4-8 1997, is reenacted and amended to read as follows:
4-9 (d) For the purposes of this section, "taxable value" means
4-10 the market value of all taxable property less:
4-11 (1) the total dollar amount of any residence homestead
4-12 exemptions lawfully granted under Section 11.13(b) or (c), Tax
4-13 Code, in the year that is the subject of the study for each school
4-14 district;
4-15 (2) the total dollar amount of any exemptions granted
4-16 before May 31, 1993, within a reinvestment zone under agreements
4-17 authorized by Chapter 312, Tax Code;
4-18 (3) the total dollar amount of any captured appraised
4-19 value of property that is located in a reinvestment zone on August
4-20 31, 1999, generates a tax increment paid into a tax increment fund,
4-21 and is eligible for tax increment financing under Chapter 311, Tax
4-22 Code, under a reinvestment zone financing plan approved under
4-23 Section 311.011(d), Tax Code, before September 1, 1999;
4-24 (4) [the total dollar amount of any exemptions granted
4-25 under Section 11.251, Tax Code;]
4-26 [(5)] the difference between the comptroller's
4-27 estimate of the market value and the productivity value of land
5-1 that qualifies for appraisal on the basis of its productive
5-2 capacity, except that the productivity value estimated by the
5-3 comptroller may not exceed the fair market value of the land;
5-4 (5) [(6)] the portion of the appraised value of
5-5 residence homesteads of the elderly on which school district taxes
5-6 are not imposed in the year that is the subject of the study,
5-7 calculated as if the residence homesteads were appraised at the
5-8 full value required by law;
5-9 (6) [(7)] a portion of the market value of property
5-10 not otherwise fully taxable by the district at market value because
5-11 of action required by statute or the constitution of this state
5-12 that, if the tax rate adopted by the district is applied to it,
5-13 produces an amount equal to the difference between the tax that the
5-14 district would have imposed on the property if the property were
5-15 fully taxable at market value and the tax that the district is
5-16 actually authorized to impose on the property, if this subsection
5-17 does not otherwise require that portion to be deducted;
5-18 (7) [(8) the market value of all tangible personal
5-19 property, other than manufactured homes, owned by a family or
5-20 individual and not held or used for the production of income;]
5-21 [(9)] the appraised value of property the collection
5-22 of delinquent taxes on which is deferred under Section 33.06, Tax
5-23 Code;
5-24 (8) [(10)] the portion of the appraised value of
5-25 property the collection of delinquent taxes on which is deferred
5-26 under Section 33.065, Tax Code; and
5-27 (9) [(11)] the amount by which the market value of a
6-1 residence homestead to which Section 23.23, Tax Code, applies
6-2 exceeds the appraised value of that property as calculated under
6-3 that section.
6-4 SECTION 5. Article 4.01, Insurance Code, is amended to read
6-5 as follows:
6-6 Art. 4.01. TAX OTHER THAN PREMIUM TAX. (a) All insurance
6-7 companies incorporated under the laws of this state shall hereafter
6-8 be required to render for county and municipal taxation all of
6-9 their real estate [and all furniture, fixtures, automobiles,
6-10 equipment, and data processing systems, as other such real estate
6-11 and tangible personal property is rendered] in the city and county
6-12 where such real estate [property] is located.
6-13 (b) [All other personal property owned by such insurance
6-14 companies, except fire insurance companies and casualty insurance
6-15 companies, shall be valued as other such property is valued for
6-16 assessment by the taxing authority in the following manner:]
6-17 [From the total valuation of the entire assets of each
6-18 insurance company shall be deducted:]
6-19 [(a) All the debts of every kind and character
6-20 owed by such insurance company;]
6-21 [(b) All intangible personal property owned by
6-22 such insurance company;]
6-23 [(c) All reserves, being the amount of the debts
6-24 of such insurance company by reason of its outstanding policies in
6-25 gross.]
6-26 [From the remainder shall be deducted the assessed
6-27 value of all real estate and the assessed value of all furniture,
7-1 fixtures, automobiles, equipment, and data-processing systems,
7-2 rendered for taxation, and the remainder, if any there be, shall be
7-3 taxable as personal property by the city and county where the
7-4 principal business office of any such company is fixed by its
7-5 charter.]
7-6 [All other personal property of fire insurance companies and
7-7 casualty insurance companies incorporated under the laws of this
7-8 state shall be valued as other such property is valued for
7-9 assessment by the taxing authority in the following manner:]
7-10 [From the total valuation of the entire assets of each
7-11 insurance company shall be deducted:]
7-12 [(a) All the debts of every kind and character
7-13 owed by such insurance company;]
7-14 [(b) All intangible personal property owned by
7-15 such insurance company;]
7-16 [(c) All reserves, which reserves shall be
7-17 computed in such manner as may be prescribed by the rules and
7-18 regulations of the State Board of Insurance, for unearned premiums
7-19 and for all bona fide outstanding losses.]
7-20 [From the remainder shall be deducted the assessed
7-21 value of all real estate and the assessed value of all furniture,
7-22 fixtures, automobiles, equipment, and data-processing systems,
7-23 rendered for taxation, and the remainder, if any there be, shall be
7-24 taxable as personal property by the city and county where the
7-25 principal business office of any company is fixed by its charter.]
7-26 Domestic insurance companies shall not be required to pay any
7-27 occupation or gross receipts tax except as otherwise provided by
8-1 this code.
8-2 SECTION 6. (a) The following provisions of the Tax Code are
8-3 repealed:
8-4 (1) Section 11.02;
8-5 (2) Section 11.14;
8-6 (3) Section 11.145;
8-7 (4) Section 11.15;
8-8 (5) Section 11.16;
8-9 (6) Section 11.161;
8-10 (7) Section 11.25;
8-11 (8) Section 11.251;
8-12 (9) Section 11.271;
8-13 (10) Section 11.437;
8-14 (11) Section 21.02;
8-15 (12) Section 21.021;
8-16 (13) Section 21.03;
8-17 (14) Section 21.031;
8-18 (15) Section 21.04;
8-19 (16) Section 21.05;
8-20 (17) Section 21.06;
8-21 (18) Section 21.07;
8-22 (19) Section 21.08;
8-23 (20) Sections 22.04(b) and (c);
8-24 (21) Section 22.07;
8-25 (22) Section 23.12(f);
8-26 (23) Section 23.121;
8-27 (24) Section 23.122;
9-1 (25) Section 23.123;
9-2 (26) Section 23.124;
9-3 (27) Section 23.1241;
9-4 (28) Section 23.1242;
9-5 (29) Section 23.125;
9-6 (30) Section 23.126;
9-7 (31) Section 23.127;
9-8 (32) Section 23.128;
9-9 (33) Subchapter B, Chapter 24; and
9-10 (34) Subchapter B, Chapter 33.
9-11 (b) Section 89.003, Finance Code, is repealed.
9-12 SECTION 7. (a) This Act takes effect January 1, 2000, but
9-13 only if the constitutional amendment proposed by the 76th
9-14 Legislature, Regular Session, 1999, exempting all personal property
9-15 in this state from ad valorem taxation is approved by the voters.
9-16 If that amendment is not approved by the voters, this Act has no
9-17 effect.
9-18 (b) The change in law made by this Act to Section
9-19 403.302(d), Government Code, applies only to the determination of
9-20 the total taxable value of property in a school district for a tax
9-21 year that begins after December 31, 1999. The determination of the
9-22 total taxable value of property in a school district for a tax year
9-23 that begins before that date is covered by Section 403.302(d),
9-24 Government Code, as that section existed when the tax year began,
9-25 and the former law is continued in effect for that purpose.
9-26 (c) Notwithstanding the change in law made by this Act to
9-27 Sections 11.01, 22.01, 22.05, and 23.12(a), Tax Code, and Article
10-1 4.01, Insurance Code, and the repeal by Section 6 of this Act of
10-2 the statutes listed in that section, each of those statutes, as it
10-3 existed immediately before January 1, 2000, is continued in effect
10-4 for the purpose of the levy and collection of an ad valorem tax on
10-5 personal property imposed:
10-6 (1) before January 1, 2000; or
10-7 (2) pursuant to Section 1(g), Article VIII, Texas
10-8 Constitution.
10-9 SECTION 8. The importance of this legislation and the
10-10 crowded condition of the calendars in both houses create an
10-11 emergency and an imperative public necessity that the
10-12 constitutional rule requiring bills to be read on three several
10-13 days in each house be suspended, and this rule is hereby suspended.