By Staples S.B. No. 862
77R4120 SMH-F
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. Section 11.251(h), Tax Code, is amended to read as
1-6 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. The
2-1 chief appraiser shall make an entry on the appraisal records for
2-2 the inventory or property indicating the property owner's liability
2-3 for the penalty and shall deliver a written notice of imposition of
2-4 the penalty, explaining the reason for its imposition, to the
2-5 property owner. The assessor for a taxing unit that taxes the
2-6 inventory or property shall add the amount of the penalty to the
2-7 property owner's tax bill, and the tax collector for the unit shall
2-8 collect the penalty at the time and in the manner the collector
2-9 collects the tax. The amount of the penalty constitutes a lien
2-10 against the inventory or property against which the penalty is
2-11 imposed, as if it were a tax, and accrues penalty and interest in
2-12 the same manner as a delinquent tax.
2-13 SECTION 2. Section 11.43(e), Tax Code, is amended to read as
2-14 follows:
2-15 (e) Except as provided by Section 11.422, 11.431, 11.433,
2-16 11.434, [or] 11.435, or 11.439 [of this code], if a person required
2-17 to apply for an exemption in a given year fails to file timely a
2-18 completed application form, the person may not receive the
2-19 exemption for that year.
2-20 SECTION 3. Subchapter C, Chapter 11, Tax Code, is amended by
2-21 adding Section 11.439 to read as follows:
2-22 Sec. 11.439. LATE APPLICATION FOR FREEPORT EXEMPTION. (a)
2-23 The chief appraiser shall accept and approve or deny an application
2-24 for an exemption for freeport goods under Section 11.251 after the
2-25 deadline for filing it has passed if it is filed before the date
2-26 the appraisal review board approves the appraisal records.
2-27 (b) If the application is approved, the property owner is
3-1 liable to each taxing unit for a penalty in an amount equal to 10
3-2 percent of the difference between the amount of tax imposed by the
3-3 taxing unit on the inventory or property, a portion of which
3-4 consists of freeport goods, and the amount that would otherwise
3-5 have been imposed.
3-6 (c) The chief appraiser shall make an entry on the appraisal
3-7 records for the inventory or property indicating the property
3-8 owner's liability for the penalty and shall deliver a written
3-9 notice of imposition of the penalty, explaining the reason for its
3-10 imposition, to the property owner.
3-11 (d) The tax assessor for a taxing unit that taxes the
3-12 inventory or property shall add the amount of the penalty to the
3-13 property owner's tax bill, and the tax collector for the unit shall
3-14 collect the penalty at the time and in the manner the collector
3-15 collects the tax. The amount of the penalty constitutes a lien
3-16 against the inventory or property against which the penalty is
3-17 imposed, as if it were a tax, and accrues penalty and interest in
3-18 the same manner as a delinquent tax.
3-19 SECTION 4. This Act takes effect September 1, 2001.