BILL ANALYSIS
By: Phillips
Local Government Ways & Means
Committee Report (Substituted)
BACKGROUND AND PURPOSE
Chapter 22 of the Tax Code requires an annual rendition for taxation of all tangible personal property used for the production of income. For businesses in the service industry, inventory often remains unchanged from year to year. C.S.H.B. 264 allows such a person to comply with rendition requirements by filing a rendition statement on a form prescribed by the comptroller of public accounts.
C.S.H.B. 264 further requires the comptroller's form under Section 22.24(c) of the Tax Code to include a box that the property owner may check to permit the property owner to affirm that the information contained in the most recent rendition statement filed by the property owner in a prior tax year is accurate with respect to the current tax year.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
SECTION 1. Amends Section 22.01, Tax Code, by adding Subsection (k), as follows:
(k) Authorizes a person, if the information contained in the most recent rendition statement filed by the person in a prior tax year is accurate with respect to the current tax year, to comply with the requirements of Subsection (a) by filing a rendition statement on a form prescribed or approved by the comptroller of public accounts (comptroller) under Section 22.24(c) (Rendition and Report Forms) on which the person has checked the appropriate box to affirm that the information continues to be accurate.
SECTION 2. Amends Section 22.24(c), Tax Code, as follows:
(c) Requires each form to include a box that the property owner may check to permit the property owner to affirm that the information contained in the most recent rendition statement filed by the property owner in a prior tax year is accurate with respect to the current tax year in accordance with Section 22.01(k).
SECTION 3. (a) Requires the comptroller as soon as practicable after the effective date of this Act, but not later than January 1, 2006, to prescribe or approve the forms required by Section 22.24(c), Tax Code, as amended by this Act.
(b) Makes application of this Act prospective to January 1, 2008.
SECTION 4. (a) Effective date: September 1, 2007, except as provided by Subsection (b) of this section.
(b) Provides that Section 1 of this Act takes effect January 1, 2008.
EFFECTIVE DATE
Section 1 of this Act takes effect January 1, 2008. The rest of this Act takes effect September 1, 2007.
COMPARISON OF ORIGINAL TO SUBSTITUTE
The substitute adds the words "complete and" between "be" and "accurate" to Section 1 of the bill. This change clarifies that information contained in the most recently filed rendition statement continues to be accurate as well as complete. This amendment is a clarifying amendment and does not substantively alter the intent of the original bill.