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 or a person designated in writing by the
1-10 importer of record to provide copies of inventory or property
1-11 records in order to determine the amount and value of freeport
1-12 goods. If the property owner or designated person fails to deliver
1-13 the information requested in the notice before the 31st day after
1-14 the date the notice is delivered to the property owner or before
1-15 the date the appraisal review board approves the appraisal records
1-16 under Section 41.12, whichever is later, the property owner
1-17 forfeits the right to claim or receive the exemption for that year.
1-18 If the property owner or designated person delivers the information
1-19 requested in the notice before the date the appraisal review board
1-20 approves the appraisal records but not before the 31st day after
1-21 the date the notice is delivered to the property owner and the
1-22 exemption is allowed, the property owner is liable to each taxing
1-23 unit for a penalty in an amount equal to 10 percent of the
1-24 difference between the amount of tax imposed by the taxing unit on
1-25 the inventory or property and the amount that would otherwise have
2-1 been imposed. The chief appraiser shall make an entry on the
2-2 appraisal records for the inventory or property indicating the
2-3 property owner's liability for the penalty and shall deliver a
2-4 written notice of imposition of the penalty, explaining the reason
2-5 for its imposition, to the property owner. The assessor for a
2-6 taxing unit that taxes the inventory or property shall add the
2-7 amount of the penalty to the property owner's tax bill, and the tax
2-8 collector for the unit shall collect the penalty at the time and in
2-9 the manner the collector collects the tax. The amount of the
2-10 penalty constitutes a lien against the inventory or property
2-11 against which the penalty is imposed, as if it were a tax, and
2-12 accrues penalty and interest in the same manner as a delinquent
2-13 tax.
2-14 SECTION 2. Subsection (e), Section 11.43, Tax Code, is
2-15 amended to read as follows:
2-16 (e) Except as provided by Section 11.422, 11.431, 11.433,
2-17 11.434, [or] 11.435, or 11.439 [of this code], if a person required
2-18 to apply for an exemption in a given year fails to file timely a
2-19 completed application form, the person may not receive the
2-20 exemption for that year.
2-21 SECTION 3. Subchapter C, Chapter 11, Tax Code, is amended by
2-22 adding Section 11.439 to read as follows:
2-23 Sec. 11.439. LATE APPLICATION FOR FREEPORT EXEMPTION.
2-24 (a) The chief appraiser shall accept and approve or deny an
2-25 application for an exemption for freeport goods under Section
2-26 11.251 after the deadline for filing it has passed if it is filed
3-1 before the date the appraisal review board approves the appraisal
3-2 records.
3-3 (b) If the application is approved, the property owner is
3-4 liable to each taxing unit for a penalty in an amount equal to 10
3-5 percent of the difference between the amount of tax imposed by the
3-6 taxing unit on the inventory or property, a portion of which
3-7 consists of freeport goods, and the amount that would otherwise
3-8 have been imposed.
3-9 (c) The chief appraiser shall make an entry on the appraisal
3-10 records for the inventory or property indicating the property
3-11 owner's liability for the penalty and shall deliver a written
3-12 notice of imposition of the penalty, explaining the reason for its
3-13 imposition, to the property owner.
3-14 (d) The tax assessor for a taxing unit that taxes the
3-15 inventory or property shall add the amount of the penalty to the
3-16 property owner's tax bill, and the tax collector for the unit shall
3-17 collect the penalty at the time and in the manner the collector
3-18 collects the tax. The amount of the penalty constitutes a lien
3-19 against the inventory or property against which the penalty is
3-20 imposed, as if it were a tax, and accrues penalty and interest in
3-21 the same manner as a delinquent tax.
3-22 SECTION 4. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 862 passed the Senate on
April 11, 2001, by a viva-voce vote; and that the Senate concurred
in House amendment on May 2, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 862 passed the House, with
amendment, on April 27, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor