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79S30180 JD-F

By:  West                                                         H.B. No. 125



A BILL TO BE ENTITLED

AN ACT

relating to the ad valorem tax situs of certain portable drilling 
rigs.     
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  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 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.
	SECTION 2.  Section 21.02, Tax Code, as amended by this Act, 
applies only to the taxable situs of property for an ad valorem tax 
year that begins on or after January 1, 2007.
	SECTION 3.  This Act takes effect January 1, 2007.