| |
|
|
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(a), Tax Code, is amended to read as |
|
|
follows: |
|
|
(a) Except as provided by Subsection [Subsections] (b) [and
|
|
|
(e)] and by Sections 21.021, 21.022, 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 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 |
|
|
subsection. |
|
|
SECTION 2. Chapter 21, Tax Code, is amended by adding |
|
|
Section 21.022 to read as follows: |
|
|
Sec. 21.022. PORTABLE DRILLING RIGS. (a) In this section, |
|
|
"portable drilling rig" includes equipment associated with the |
|
|
drilling rig. |
|
|
(b) A portable drilling rig designed for land-based oil or |
|
|
gas drilling or exploration operations is considered to be located |
|
|
on January 1 for more than a temporary period for purposes of |
|
|
Section 21.02 in the taxing unit in which the drilling rig was |
|
|
located during the preceding tax year. If the drilling rig was |
|
|
located in more than one taxing unit during the preceding tax year, |
|
|
the drilling rig is considered to be located for more than a |
|
|
temporary period for purposes of Section 21.02 in the taxing unit in |
|
|
which the drilling rig was located for the longest period during the |
|
|
preceding tax year or for 30 days, whichever period is longer. |
|
|
(c) If a portable drilling rig is not considered to be |
|
|
located in any taxing unit on January 1 for more than a temporary |
|
|
period under Subsection (b), the drilling rig is taxable as |
|
|
provided by Sections 21.02(a)(2) through (4). |
|
|
SECTION 3. Section 21.02(e), Tax Code, is repealed. |
|
|
SECTION 4. This Act applies only to a tax year that begins |
|
|
on or after the effective date of this Act. |
|
|
SECTION 5. This Act takes effect January 1, 2008. |