By:  Staples                                                      S.B. No. 1653


A BILL TO BE ENTITLED

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 new 
Subsection (h) to read as follows:
	(h)  In determining the market value of drug supplies held in 
surplus, the chief appraiser shall exclude as economic obsolescence 
from the market value cost attributable to drug supplies held in 
surplus which are in excess of the amount of drugs held for normal 
market purposes.  "Drug supplies held in surplus" consist of drugs 
or medicines as defined by Section 151.313, Tax Code that are owned 
by the holder of a license for the wholesale distribution of drugs 
under Chapter 431, Health Code and are held for less than sixty 
days, for response to public health demands, emergency treatment or 
similar health care needs.
	SECTION 2.  This Act takes effect January 1, 2006.