Floor Packet Page No. 93                                                    



	

Amend CSHB 3 by adding the following appropriately numbered 

section and renumbering existing sections accordingly:

	SECTION ____.  (a)  Section 21.02, Tax Code, is amended by 

amending Subsection (a) and adding Subsection (e) to read as 

follows:

	(a)  Except as provided by Subsections [Subsection] (b) and 

(e) and by Sections 21.021, 21.04, and 21.05, tangible personal 

property is taxable by a taxing unit if:

		(1)  it is located in the unit on January 1 for more 

than a temporary period;

		(2)  it normally is located in the unit, even though it 

is outside the unit on January 1, if it is outside the unit only 

temporarily;

		(3)  it normally is returned to the unit between uses 

elsewhere and is not located in any one place for more than a 

temporary period;  or

		(4)  the owner resides (for property not used for 

business purposes) or maintains the owner's [his] principal place 

of business in this state (for property used for business purposes) 

in the unit and the property is taxable in this state but does not 

have a taxable situs pursuant to Subdivisions (1) through (3) of 

this subsection [section].

	(e)  In this subsection, "portable drilling rig" includes 

equipment associated with the drilling rig.  A portable drilling 

rig designed for land-based oil or gas drilling or exploration 

operations is taxable by the taxing unit in which the rig is located 

on January 1 if the rig was located in the appraisal district that 

appraises property for the unit for the preceding 365 consecutive 

days.  If the drilling rig was not located in the appraisal district 

where it is located on January 1 for the preceding 365 days, it is 

taxable by the taxing unit in which the owner's principal place of 

business in this state is located on January 1.

	(b)  Section 21.02, Tax Code, as amended by this section, 

applies only to the taxable situs of property for an ad valorem tax 

year that begins on or after January 1, 2007.

	(c)  This section takes effect January 1, 2007.