AN ACT
1-1 relating to appraisal of heavy equipment for ad valorem tax
1-2 purposes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subdivision (2), Subsection (a), Section 23.1241,
1-5 Tax Code, is amended to read as follows:
1-6 (2) "Dealer's heavy equipment inventory" means all
1-7 items of heavy equipment that a dealer holds for sale at retail.
1-8 The term includes items of heavy equipment that are leased or
1-9 rented but subject to a purchase option by the lessee or renter.
1-10 SECTION 2. Subdivision (7), Subsection (a), Section 23.1241,
1-11 Tax Code, is amended to read as follows:
1-12 (7) "Sales price" means:
1-13 (A) the total amount of money paid or to be paid
1-14 to a dealer for the purchase of an item of heavy equipment; or
1-15 (B) for a lease or rental with an option to
1-16 purchase, the total amount of the lease or rental payments plus any
1-17 final consideration, excluding interest.
1-18 SECTION 3. Subsection (b), Section 23.1241, Tax Code, is
1-19 amended to read as follows:
1-20 (b) For the purpose of the computation of property tax:
1-21 (1) [,] the market value of a dealer's heavy
1-22 equipment inventory on January 1 is the total annual sales, less
1-23 sales to dealers, fleet transactions, and subsequent sales, for the
1-24 12-month period corresponding to the preceding tax year, divided by
2-1 12; and
2-2 (2) a sale is considered to occur when possession of
2-3 an item of heavy equipment is transferred from the dealer to the
2-4 purchaser.
2-5 SECTION 4. This Act takes effect January 1, 2000, and
2-6 applies to the appraisal of heavy equipment for ad valorem tax
2-7 purposes for a tax year that begins on or after that date.
2-8 SECTION 5. The importance of this legislation and the
2-9 crowded condition of the calendars in both houses create an
2-10 emergency and an imperative public necessity that the
2-11 constitutional rule requiring bills to be read on three several
2-12 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1435 passed the Senate on
April 29, 1999, by the following vote: Yeas 30, Nays 0; and that
the Senate concurred in House amendment on May 28, 1999, by a
viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1435 passed the House, with
amendment, on May 26, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor