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H.B. No. 3016
AN ACT
relating to the determination of the market value of certain drug
supplies for ad valorem property tax purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.12, Tax Code, is amended by adding
Subsection (h) to read as follows:
(h) In this subsection, "drug supplies held in surplus"
means drugs, as defined by Section 431.002(14), Health and Safety
Code, that are owned by a person who holds a wholesale drug
distributor license under Chapter 431, Health and Safety Code,
other than a pharmaceutical drug manufacturer, retail pharmacy, or
chain pharmacy, and that are held for less than 60 days for use in
responding to terrorist attack, bioterrorism event, and
catastrophic man-made or natural disasters, but only that
percentage of the owner's inventory necessary to treat victims of
terrorist attack, bioterrorism event, or catastrophic man-made or
natural disasters by attending physicians or other emergency health
care personnel. In determining the market value of drug supplies
held in surplus, the chief appraiser shall exclude as economic
obsolescence from the market value the value attributable to drug
supplies held in surplus that exceed the amount of drugs held for
normal market purposes. For rendition purposes, in calculating the
number of days drug supplies held in surplus are held in an
inventory, the owner shall quantify the average number of days of
the owner's day-to-day working inventory (cycle stock) that the
owner holds to meet normal customer demand and shall subtract that
number of days from the average number of days the owner holds the
owner's total drug inventory. When the owner renders the owner's
total drug inventory, the owner shall include information
sufficient to establish the validity of the owner's calculations
under this subsection. Notwithstanding any other provision of this
subsection, the percentage of an owner's drug supplies held in
surplus inventory may not exceed 10 percent of the owner's total
inventory of drugs as defined by Section 431.002(14), Health and
Safety Code.
SECTION 2. This Act takes effect January 1, 2006.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3016 was passed by the House on April
19, 2005, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 3016 on May 26, 2005, by a non-record
vote.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3016 was passed by the Senate, with
amendments, on May 24, 2005, by the following vote: Yeas 27, Nays
4.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor