By: Staples S.B. No. 862
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the exemption from ad valorem taxation for freeport
1-3 goods.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subsection (h), Section 11.251, Tax Code, is
1-6 amended to read as follows:
1-7 (h) The chief appraiser by written notice delivered to a
1-8 property owner who claims an exemption under this section may
1-9 require the property owner to provide copies of inventory or
1-10 property records in order to determine the amount and value of
1-11 freeport goods. If the property owner fails to deliver the
1-12 information requested in the notice before the 31st day after the
1-13 date the notice is delivered to the property owner or before the
1-14 date the appraisal review board approves the appraisal records
1-15 under Section 41.12, whichever is later, the property owner
1-16 forfeits the right to claim or receive the exemption for that year.
1-17 If the property owner delivers the information requested in the
1-18 notice before the date the appraisal review board approves the
1-19 appraisal records but not before the 31st day after the date the
1-20 notice is delivered to the property owner and the exemption is
1-21 allowed, the property owner is liable to each taxing unit for a
1-22 penalty in an amount equal to 10 percent of the difference between
1-23 the amount of tax imposed by the taxing unit on the inventory or
1-24 property and the amount that would otherwise have been imposed.
1-25 The chief appraiser shall make an entry on the appraisal records
2-1 for the inventory or property indicating the property owner's
2-2 liability for the penalty and shall deliver a written notice of
2-3 imposition of the penalty, explaining the reason for its
2-4 imposition, to the property owner. The assessor for a taxing unit
2-5 that taxes the inventory or property shall add the amount of the
2-6 penalty to the property owner's tax bill, and the tax collector for
2-7 the unit shall collect the penalty at the time and in the manner
2-8 the collector collects the tax. The amount of the penalty
2-9 constitutes a lien against the inventory or property against which
2-10 the penalty is imposed, as if it were a tax, and accrues penalty
2-11 and interest in the same manner as a delinquent tax.
2-12 SECTION 2. Subsection (e), Section 11.43, Tax Code, is
2-13 amended to read as follows:
2-14 (e) Except as provided by Section 11.422, 11.431, 11.433,
2-15 11.434, [or] 11.435, or 11.439 [of this code], if a person required
2-16 to apply for an exemption in a given year fails to file timely a
2-17 completed application form, the person may not receive the
2-18 exemption for that year.
2-19 SECTION 3. Subchapter C, Chapter 11, Tax Code, is amended by
2-20 adding Section 11.439 to read as follows:
2-21 Sec. 11.439. LATE APPLICATION FOR FREEPORT EXEMPTION.
2-22 (a) The chief appraiser shall accept and approve or deny an
2-23 application for an exemption for freeport goods under Section
2-24 11.251 after the deadline for filing it has passed if it is filed
2-25 before the date the appraisal review board approves the appraisal
2-26 records.
3-1 (b) If the application is approved, the property owner is
3-2 liable to each taxing unit for a penalty in an amount equal to 10
3-3 percent of the difference between the amount of tax imposed by the
3-4 taxing unit on the inventory or property, a portion of which
3-5 consists of freeport goods, and the amount that would otherwise
3-6 have been imposed.
3-7 (c) The chief appraiser shall make an entry on the appraisal
3-8 records for the inventory or property indicating the property
3-9 owner's liability for the penalty and shall deliver a written
3-10 notice of imposition of the penalty, explaining the reason for its
3-11 imposition, to the property owner.
3-12 (d) The tax assessor for a taxing unit that taxes the
3-13 inventory or property shall add the amount of the penalty to the
3-14 property owner's tax bill, and the tax collector for the unit shall
3-15 collect the penalty at the time and in the manner the collector
3-16 collects the tax. The amount of the penalty constitutes a lien
3-17 against the inventory or property against which the penalty is
3-18 imposed, as if it were a tax, and accrues penalty and interest in
3-19 the same manner as a delinquent tax.
3-20 SECTION 4. This Act takes effect September 1, 2001.