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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 and associated equipment. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 21.02(a), Tax Code, is amended to read as |
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follows: |
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(a) Except as provided by Subsection [Subsections] (b) [and
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(e)] and by Sections 21.021, 21.022, 21.04, and 21.05, tangible |
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personal property is taxable by a taxing unit if: |
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(1) it is located in the unit on January 1 for more |
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than a temporary period; |
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(2) it normally is located in the unit, even though it |
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is outside the unit on January 1, if it is outside the unit only |
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temporarily; |
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(3) it normally is returned to the unit between uses |
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elsewhere and is not located in any one place for more than a |
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temporary period; or |
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(4) the owner resides (for property not used for |
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business purposes) or maintains the owner's principal place of |
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business in this state (for property used for business purposes) in |
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the unit and the property is taxable in this state but does not have |
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a taxable situs pursuant to Subdivisions (1) through (3) of this |
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subsection. |
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SECTION 2. Chapter 21, Tax Code, is amended by adding |
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Section 21.022 to read as follows: |
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Sec. 21.022. PORTABLE DRILLING RIGS. (a) In this section, |
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"portable drilling rig" includes equipment associated with the |
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drilling rig. |
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(b) A portable drilling rig designed for land-based oil or |
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gas drilling or exploration operations is taxable by each taxing |
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unit in which the rig is located on January 1 if the rig was located |
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in the appraisal district that appraises property for the unit for |
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the preceding 10 consecutive days. If the drilling rig was not |
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located in the appraisal district where it is located on January 1 |
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for the preceding 10 days, it is taxable by each taxing unit in |
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which the owner's principal place of business in this state is |
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located on January 1. |
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SECTION 3. Section 21.02(e), Tax Code, is repealed. |
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SECTION 4. 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 5. This Act takes effect January 1, 2008. |