83R17646 CJC-D
 
  By: Menendez H.B. No. 2387
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the ad valorem taxation of certain tangible personal
  property located inside a defense base development authority.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 379B.011, Local Government Code, is
  amended by adding Subsections (c) and (d) to read as follows:
         (c)  A commercial product that is in the process of being
  manufactured, assembled, or produced inside the authority is
  presumed to be in interstate, international, or foreign commerce
  and not located in this state for longer than a temporary period for
  purposes of Sections 11.01 and 21.02, Tax Code, if:
               (1)  the entity manufacturing, assembling, or
  producing the product is engaged in a business activity described
  by sectors 31 through 33 of the 2012 North American Industry
  Classification System (NAICS); and
               (2)  the product is eligible under guidelines and
  criteria established by the commissioners court of the county in
  which the authority is located under Section 312.002, Tax Code.
         (d)  Tangible personal property located inside the authority
  is presumed to be in interstate, international, or foreign commerce
  and not located in this state for longer than a temporary period for
  purposes of Sections 11.01 and 21.02, Tax Code, if the owner
  demonstrates to the chief appraiser for the appraisal district in
  which the authority is located that the owner intends to
  incorporate the property into or attach the property to a
  commercial product described by Subsection (c).
         SECTION 2.  The change in law made by this Act applies only
  to ad valorem taxes imposed for a tax year beginning on or after the
  effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2014.