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A BILL TO BE ENTITLED
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AN ACT
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relating to the qualifications for the exemption from ad valorem |
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taxation for aircraft parts located in this state for a limited |
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time. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.251, Tax Code, is amended by amending |
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Subsections (b), (c), (e), (g), and (k) and adding Subsection (l) to |
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read as follows: |
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(b) A person is entitled to an exemption from taxation by a |
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taxing unit of the appraised value of that portion of the person's |
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inventory or property consisting of freeport goods as determined |
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under this section for the taxing unit. |
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(c) The exemption provided by Subsection (b) is subtracted |
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from the market value of the inventory or property determined under |
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Section 23.12 to determine the taxable value of the inventory or |
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property for the taxing unit. |
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(e) In determining the market value of freeport goods that |
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in the preceding year were assembled, manufactured, repaired, |
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maintained, processed, or fabricated in this state or used by the |
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person who acquired or imported the property in the repair or |
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maintenance of aircraft operated by a certificated air carrier, the |
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chief appraiser shall exclude the cost of equipment, machinery, or |
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materials that entered into and became component parts of the |
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freeport goods but were not themselves freeport goods or that were |
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not transported outside the state before the expiration of 175 |
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days, or, if applicable, the greater number of days adopted by the |
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taxing unit as authorized by Subsection (l), after they were |
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brought into this state by the property owner or acquired by the |
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property owner in this state. For component parts held in bulk, the |
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chief appraiser may use the average length of time a component part |
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was held in this state by the property owner during the preceding |
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year in determining whether the component parts were transported |
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out of this state before the expiration of 175 days or, if |
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applicable, the greater number of days adopted by the taxing unit as |
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authorized by Subsection (l). |
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(g) If the property owner or the chief appraiser |
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demonstrates that the method provided by Subsection (d) |
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significantly understates or overstates the market value of the |
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property qualified for an exemption under Subsection (b) in the |
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current year, the chief appraiser shall determine the market value |
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of the freeport goods to be exempt by determining, according to the |
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property owner's records and any other available information, the |
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market value of those freeport goods owned by the property owner on |
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January 1 of the current year, excluding the cost of equipment, |
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machinery, or materials that entered into and became component |
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parts of the freeport goods but were not themselves freeport goods |
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or that were not transported outside the state before the |
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expiration of 175 days, or, if applicable, the greater number of |
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days adopted by the taxing unit as authorized by Subsection (l), |
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after they were brought into this state by the property owner or |
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acquired by the property owner in this state. |
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(k) Property that meets the requirements of Article VIII, |
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Sections 1-j(a)(1) and (2), of the Texas Constitution and that is |
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transported outside of this state not later than 175 days, or, if |
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applicable, the greater number of days adopted by the taxing unit as |
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authorized by Subsection (l), after the date the person who owns it |
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on January 1 acquired it or imported it into this state is freeport |
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goods regardless of whether the person who owns it on January 1 is |
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the person who transports it outside of this state. |
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(l) The governing body of a taxing unit, in the manner |
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provided by law for official action, may extend the date by which |
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freeport goods that are aircraft parts must be transported outside |
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the state to a date not later than the 730th day after the date the |
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person acquired or imported the property in this state. An |
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extension adopted by official action under this subsection applies |
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only to the exemption from ad valorem taxation by the taxing unit |
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adopting the extension and applies to: |
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(1) the tax year: |
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(A) in which the extension is adopted if |
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officially adopted before June 1 of a tax year; or |
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(B) immediately following the tax year in which |
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the extension is adopted if officially adopted on or after June 1 of |
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a tax year; and |
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(2) each tax year following the year of adoption of the |
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extension. |
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SECTION 2. This Act applies only to a tax year beginning on |
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or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2014, but only |
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if the constitutional amendment proposed by the 83rd Legislature, |
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Regular Session, 2013, to authorize a political subdivision of this |
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state to extend the number of days that aircraft parts that are |
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exempt from ad valorem taxation due to their location in this state |
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for a temporary period may be located in this state for purposes of |
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qualifying for the tax exemption is approved by the voters. If that |
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amendment is not approved by the voters, this Act has no effect. |