1-1 By: Staples S.B. No. 862
1-2 (In the Senate - Filed February 22, 2001; February 26, 2001,
1-3 read first time and referred to Committee on Intergovernmental
1-4 Relations; April 9, 2001, reported favorably by the following vote:
1-5 Yeas 6, Nays 0; April 9, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the exemption from ad valorem taxation for freeport
1-9 goods.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Subsection (h), Section 11.251, Tax Code, is
1-12 amended to read as follows:
1-13 (h) The chief appraiser by written notice delivered to a
1-14 property owner who claims an exemption under this section may
1-15 require the property owner to provide copies of inventory or
1-16 property records in order to determine the amount and value of
1-17 freeport goods. If the property owner fails to deliver the
1-18 information requested in the notice before the 31st day after the
1-19 date the notice is delivered to the property owner or before the
1-20 date the appraisal review board approves the appraisal records
1-21 under Section 41.12, whichever is later, the property owner
1-22 forfeits the right to claim or receive the exemption for that year.
1-23 If the property owner delivers the information requested in the
1-24 notice before the date the appraisal review board approves the
1-25 appraisal records but not before the 31st day after the date the
1-26 notice is delivered to the property owner and the exemption is
1-27 allowed, the property owner is liable to each taxing unit for a
1-28 penalty in an amount equal to 10 percent of the difference between
1-29 the amount of tax imposed by the taxing unit on the inventory or
1-30 property and the amount that would otherwise have been imposed.
1-31 The chief appraiser shall make an entry on the appraisal records
1-32 for the inventory or property indicating the property owner's
1-33 liability for the penalty and shall deliver a written notice of
1-34 imposition of the penalty, explaining the reason for its
1-35 imposition, to the property owner. The assessor for a taxing unit
1-36 that taxes the inventory or property shall add the amount of the
1-37 penalty to the property owner's tax bill, and the tax collector for
1-38 the unit shall collect the penalty at the time and in the manner
1-39 the collector collects the tax. The amount of the penalty
1-40 constitutes a lien against the inventory or property against which
1-41 the penalty is imposed, as if it were a tax, and accrues penalty
1-42 and interest in the same manner as a delinquent tax.
1-43 SECTION 2. Subsection (e), Section 11.43, Tax Code, is
1-44 amended to read as follows:
1-45 (e) Except as provided by Section 11.422, 11.431, 11.433,
1-46 11.434, [or] 11.435, or 11.439 [of this code], if a person required
1-47 to apply for an exemption in a given year fails to file timely a
1-48 completed application form, the person may not receive the
1-49 exemption for that year.
1-50 SECTION 3. Subchapter C, Chapter 11, Tax Code, is amended by
1-51 adding Section 11.439 to read as follows:
1-52 Sec. 11.439. LATE APPLICATION FOR FREEPORT EXEMPTION.
1-53 (a) The chief appraiser shall accept and approve or deny an
1-54 application for an exemption for freeport goods under Section
1-55 11.251 after the deadline for filing it has passed if it is filed
1-56 before the date the appraisal review board approves the appraisal
1-57 records.
1-58 (b) If the application is approved, the property owner is
1-59 liable to each taxing unit for a penalty in an amount equal to 10
1-60 percent of the difference between the amount of tax imposed by the
1-61 taxing unit on the inventory or property, a portion of which
1-62 consists of freeport goods, and the amount that would otherwise
1-63 have been imposed.
1-64 (c) The chief appraiser shall make an entry on the appraisal
2-1 records for the inventory or property indicating the property
2-2 owner's liability for the penalty and shall deliver a written
2-3 notice of imposition of the penalty, explaining the reason for its
2-4 imposition, to the property owner.
2-5 (d) The tax 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 4. This Act takes effect September 1, 2001.
2-14 * * * * *