By Duncan, et al. S.B. No. 1435
Substitute the following for S.B. No. 1435:
By Heflin C.S.S.B. No. 1435
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 or
1-10 rented but subject to a purchase option by the lessee or renter.
1-11 SECTION 2. Section 23.1241(a)(7), Tax Code, is amended to
1-12 read as follows:
1-13 (7) "Sales price" means:
1-14 (A) the total amount of money paid or to be paid
1-15 to a dealer for the purchase of an item of heavy equipment; or
1-16 (B) for a lease or rental with an option to
1-17 purchase, the total amount of the lease or rental payments plus any
1-18 final consideration, excluding interest.
1-19 SECTION 3. Section 23.1241(b), Tax Code, is amended to read
1-20 as follows:
1-21 (b) For the purpose of the computation of property tax:
1-22 (1) [,] the market value of a dealer's heavy
1-23 equipment inventory on January 1 is the total annual sales, less
2-1 sales to dealers, fleet transactions, and subsequent sales, for the
2-2 12-month period corresponding to the preceding tax year, divided by
2-3 12; and
2-4 (2) a sale is considered to occur when possession of
2-5 an item of heavy equipment is transferred from the dealer to the
2-6 purchaser.
2-7 SECTION 3. This Act takes effect January 1, 2000, and
2-8 applies to the appraisal of heavy equipment for ad valorem tax
2-9 purposes for a tax year that begins on or after that date.
2-10 SECTION 4. The importance of this legislation and the
2-11 crowded condition of the calendars in both houses create an
2-12 emergency and an imperative public necessity that the
2-13 constitutional rule requiring bills to be read on three several
2-14 days in each house be suspended, and this rule is hereby suspended.