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SECTION 1. Section 11.251,
Tax Code, is amended by amending Subsections (b), (c), (e), (g), and (k)
and adding Subsection (l) to read as follows:
(b) A person is entitled to
an exemption from taxation by a taxing unit of the appraised value
of that portion of the person's inventory or property consisting of
freeport goods as determined under this section for the taxing unit.
(c) The exemption provided
by Subsection (b) is subtracted from the market value of the inventory or
property determined under Section 23.12 to determine the taxable value of
the inventory or property for the taxing unit.
(e) In determining the
market value of freeport goods that in the preceding year were assembled,
manufactured, repaired, maintained, processed, or fabricated in this state
or used by the person who acquired or imported the property in the repair
or maintenance of aircraft operated by a certificated air carrier, the chief
appraiser shall exclude the cost of equipment, machinery, or materials that
entered into and became component parts of the freeport goods but were not
themselves freeport goods or that were not transported outside the state
before the expiration of 175 days, or the greater number of days adopted
by the taxing unit as authorized by Subsection (l), after they were
brought into this state by the property owner or acquired by the property
owner in this state. For component parts held in bulk, the chief appraiser
may use the average length of time a component part was held in this state
by the property owner during the preceding year in determining whether the
component parts were transported out of this state before the expiration of
175 days, or the greater number of days adopted by the taxing unit as
authorized by Subsection (l).
(g) If the property owner or
the chief appraiser demonstrates that the method provided by Subsection (d)
significantly understates or overstates the market value of the property qualified
for an exemption under Subsection (b) in the current year, the chief
appraiser shall determine the market value of the freeport goods to be
exempt by determining, according to the property owner's records and any
other available information, the market value of those freeport goods owned
by the property owner on January 1 of the current year, excluding the cost
of equipment, machinery, or materials that entered into and became
component parts of the freeport goods but were not themselves freeport goods
or that were not transported outside the state before the expiration of 175
days, or the greater number of days adopted by the taxing unit as
authorized by Subsection (l), after they were brought into this state
by the property owner or acquired by the property owner in this state.
(k) Property that meets the
requirements of Article VIII, Sections 1-j(a)(1) and (2), of the Texas
Constitution and that is transported outside of this state not later than
175 days, or the greater number of days adopted by the taxing unit as
authorized by Subsection (l), after the date the person who owns it on
January 1 acquired it or imported it into this state is freeport goods
regardless of whether the person who owns it on January 1 is the person who
transports it outside of this state.
(l) The governing body of
a taxing unit, in the manner provided by law for official action, may
extend the date by which freeport goods must be transported outside the
state to a date not later than the 730th day after the date the person
acquired or imported the property in this state. An extension adopted by
official action under this subsection applies only to the exemption from ad
valorem taxation by the taxing unit adopting the extension and applies to:
(1) the tax year:
(A) in which the
extension is adopted if officially adopted before June 1 of a tax year; or
(B) immediately following
the tax year in which the extension is adopted if officially adopted on or
after June 1 of a tax year; and
(2) each tax year
following the year of adoption of the extension until rescinded by the governing body in the manner provided by law
for official action.
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SECTION 1. Section 11.251,
Tax Code, is amended by amending Subsections (b), (c), (e), (g), and (k)
and adding Subsection (l) to read as follows:
(b) A person is entitled to
an exemption from taxation by a taxing unit of the appraised value
of that portion of the person's inventory or property consisting of
freeport goods as determined under this section for the taxing unit.
(c) The exemption provided
by Subsection (b) is subtracted from the market value of the inventory or
property determined under Section 23.12 to determine the taxable value of
the inventory or property for the taxing unit.
(e) In determining the
market value of freeport goods that in the preceding year were assembled,
manufactured, repaired, maintained, processed, or fabricated in this state
or used by the person who acquired or imported the property in the repair
or maintenance of aircraft operated by a certificated air carrier, the
chief appraiser shall exclude the cost of equipment, machinery, or
materials that entered into and became component parts of the freeport
goods but were not themselves freeport goods or that were not transported
outside the state before the expiration of 175 days, or, if applicable,
the greater number of days adopted by the taxing unit as authorized by
Subsection (l), after they were brought into this state by the property
owner or acquired by the property owner in this state. For component parts
held in bulk, the chief appraiser may use the average length of time a
component part was held in this state by the property owner during the
preceding year in determining whether the component parts were transported
out of this state before the expiration of 175 days or, if applicable,
the greater number of days adopted by the taxing unit as authorized by
Subsection (l).
(g) If the property owner or
the chief appraiser demonstrates that the method provided by Subsection (d)
significantly understates or overstates the market value of the property
qualified for an exemption under Subsection (b) in the current year, the
chief appraiser shall determine the market value of the freeport goods to
be exempt by determining, according to the property owner's records and any
other available information, the market value of those freeport goods owned
by the property owner on January 1 of the current year, excluding the cost
of equipment, machinery, or materials that entered into and became
component parts of the freeport goods but were not themselves freeport
goods or that were not transported outside the state before the expiration
of 175 days, or, if applicable, the greater number of days adopted by
the taxing unit as authorized by Subsection (l), after they were
brought into this state by the property owner or acquired by the property
owner in this state.
(k) Property that meets the
requirements of Article VIII, Sections 1-j(a)(1) and (2), of the Texas
Constitution and that is transported outside of this state not later than
175 days, or, if applicable, the greater number of days adopted by the
taxing unit as authorized by Subsection (l), after the date the person
who owns it on January 1 acquired it or imported it into this state is
freeport goods regardless of whether the person who owns it on January 1 is
the person who transports it outside of this state.
(l) The governing body of
a taxing unit, in the manner provided by law for official action, may
extend the date by which freeport goods that
are aircraft parts must be transported outside the state to a date
not later than the 730th day after the date the person acquired or imported
the property in this state. An extension adopted by official action under
this subsection applies only to the exemption from ad valorem taxation by
the taxing unit adopting the extension and applies to:
(1) the tax year:
(A) in which the
extension is adopted if officially adopted before June 1 of a tax year; or
(B) immediately following
the tax year in which the extension is adopted if officially adopted on or
after June 1 of a tax year; and
(2) each tax year
following the year of adoption of the extension.
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SECTION 2. Section
11.253(a)(2), Tax Code, is amended to read as follows:
(2)
"Goods-in-transit" means tangible personal property that:
(A) is acquired in or
imported into this state to be forwarded to another location in this state
or outside this state;
(B) is stored under a
contract of bailment by a public warehouse operator at one or more public
warehouse facilities in this state that are not in any way owned or
controlled by the owner of the personal property for the account of the
person who acquired or imported the property;
(C) is transported to
another location in this state or outside this state not later than 175
days, or the greater number of days adopted by a taxing unit as
authorized by Subsection (l), after the date the person acquired the
property in or imported the property into this state; and
(D) does not include oil,
natural gas, petroleum products, aircraft, dealer's motor vehicle
inventory, dealer's vessel and outboard motor inventory, dealer's heavy
equipment inventory, or retail manufactured housing inventory.
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No
equivalent provision.
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SECTION 3. Section 11.253,
Tax Code, is amended by amending Subsections (b), (c), (e), and (g) and
adding Subsection (l) to read as follows:
(b) A person is entitled to
an exemption from taxation by a taxing unit of the appraised value
of that portion of the person's property that consists of goods-in-transit as
determined under this section for the taxing unit.
(c) The exemption provided
by Subsection (b) is subtracted from the market value of the property
determined under Section 23.01 or 23.12, as applicable, to determine the
taxable value of the property for the taxing unit.
(e) In determining the
market value of goods-in-transit that in the preceding year were stored in
this state, the chief appraiser shall exclude the cost of equipment,
machinery, or materials that entered into and became component parts of the
goods-in-transit but were not themselves goods-in-transit or that were not
transported to another location in this state or outside this state before
the expiration of 175 days, or the greater number of days adopted by the
taxing unit as authorized by Subsection (l), after the date they were
brought into this state by the property owner or acquired by the property
owner in this state. For component parts held in bulk, the chief appraiser
may use the average length of time a component part was held by the owner
of the component parts during the preceding year at a location in this
state that was not owned by or under the control of the owner of the
component parts in determining whether the component parts were transported
to another location in this state or outside this state before the
expiration of 175 days, or the greater number of days adopted by the
taxing unit as authorized by Subsection (l).
(g) If the property owner or
the chief appraiser demonstrates that the method provided by Subsection (d)
significantly understates or overstates the market value of the property
qualified for an exemption under Subsection (b) in the current year, the
chief appraiser shall determine the market value of the goods-in-transit to
be exempt by determining, according to the property owner's records and any
other available information, the market value of those goods-in-transit
owned by the property owner on January 1 of the current year, excluding the
cost of equipment, machinery, or materials that entered into and became
component parts of the goods-in-transit but were not themselves
goods-in-transit or that were not transported to another location in this
state or outside this state before the expiration of 175 days, or the
greater number of days adopted by the taxing unit as authorized by
Subsection (l), after the date they were brought into this state by the
property owner or acquired by the property owner in this state.
(l) The governing body of
a taxing unit, in the manner provided by law for official action, may
extend the date by which goods-in-transit must be transported outside the
state to a date not later than the 730th day after the date the person
acquired the property in or imported the property into this state. An
extension adopted by official action under this subsection applies only to
the exemption from ad valorem taxation by the taxing unit adopting the
extension and applies to:
(1) the tax year:
(A) in which the
extension is adopted if officially adopted before June 1 of a tax year; or
(B) immediately following
the tax year in which the extension is adopted if officially adopted on or
after June 1 of a tax year; and
(2) each tax year
following the year of adoption of the extension until rescinded by the
governing body in the manner provided by law for official action.
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No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
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SECTION 5. This Act takes
effect January 1, 2014, but only if the constitutional amendment proposed
by the 83rd Legislature, Regular Session, 2013, to authorize a political
subdivision of this state to extend the number of days that certain tangible personal property that is
exempt from ad valorem taxation due to its location in this state for a
temporary period may be located in this state for purposes of qualifying
for the tax exemption is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.
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SECTION 3. This Act takes
effect January 1, 2014, but only if the constitutional amendment proposed
by the 83rd Legislature, Regular Session, 2013, to authorize a political
subdivision of this state to extend the number of days that aircraft parts that are exempt from ad
valorem taxation due to their location in this state for a temporary period
may be located in this state for purposes of qualifying for the tax
exemption is approved by the voters. If that amendment is not approved by
the voters, this Act has no effect.
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