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A BILL TO BE ENTITLED
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AN ACT
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relating to the ad valorem tax situs of certain portable drilling |
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rigs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 21.02(e), Tax Code, is amended to read as |
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follows: |
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(e) In this subsection, "portable drilling rig" includes |
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equipment associated with the drilling rig. A portable drilling |
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rig designed for land-based oil or gas drilling or exploration |
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operations is taxable by each [the] taxing unit in which the rig is |
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located on January 1 if the rig was located in the appraisal |
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district that appraises property for the unit for the preceding 365 |
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consecutive days. If the drilling rig was not located in the |
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appraisal district where it is located on January 1 for the |
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preceding 365 days, it is taxable by each [the] taxing unit in which |
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the owner's principal place of business in this state is located on |
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January 1, unless the owner renders the rig under Chapter 22 to the |
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appraisal district in which the rig is located on January 1, in |
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which event the rig is taxable by each taxing unit in which the rig |
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is located on January 1. If an owner elects to render any portable |
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drilling rig to the appraisal district in which the rig is located |
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on January 1 when the rig otherwise would be taxable at the owner's |
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principal place of business in this state, all the owner's portable |
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drilling rigs are taxable by the taxing units in which each rig is |
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located on January 1. Notwithstanding any other provision of this |
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subsection, if the owner of a portable drilling rig does not have a |
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place of business in this state, the rig is taxable by each taxing |
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unit in which the rig is located on January 1. |
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SECTION 2. This Act applies only to a tax year that begins |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2008. |