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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption from ad valorem taxation of certain |
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income-producing tangible personal property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 22.01, Tax Code, is amended by amending |
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Subsection (f) and adding Subsection (f-1) to read as follows: |
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(f) Notwithstanding Subsections (a) and (b), a rendition |
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statement of a person who owns tangible personal property used for |
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the production of income located in the appraisal district that, in |
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the owner's opinion, has an aggregate value of less than $50,000 |
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[$20,000] is required to contain only: |
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(1) the name and address of the property owner; |
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(2) a general description of the property by type or |
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category; and |
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(3) the physical location or taxable situs of the |
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property. |
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(f-1) A person who owns tangible personal property used for |
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the production of income located in the appraisal district that, in |
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the owner's opinion, has an aggregate value of at least $50,000 must |
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render the property under Subsection (a), but any amount less than |
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$50,000 of that value is exempt from taxation under this title. The |
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exemption may not be transferred to another person. |
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SECTION 2. Section 22.07, Tax Code, is amended by amending |
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Subsections (c) and (f) and adding Subsection (g) to read as |
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follows: |
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(c) The chief appraiser may request, either in writing or by |
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electronic means, that the property owner provide a statement |
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containing supporting information indicating how the value |
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rendered under Section 22.01(a)(5) or claimed to be exempt under |
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Section 22.01(f) was determined. The statement must: |
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(1) summarize information sufficient to identify the |
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property, including: |
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(A) the physical and economic characteristics |
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relevant to the opinion of value, if appropriate; and |
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(B) the source of the information used; |
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(2) state the effective date of the opinion of value; |
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and |
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(3) explain the basis of the value rendered or claimed |
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exempt. If the property owner is a business with 50 employees or |
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less, the property owner may base the estimate of value on the |
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depreciation schedules used for federal income tax purposes. |
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(f) Except as provided by Subsection (g), failure [Failure] |
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to comply with this section in a timely manner is considered to be a |
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failure to timely render under Section 22.01 and penalties as |
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described in Section 22.28 shall be applied by the chief appraiser. |
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(g) Failure to provide in a timely manner a statement |
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requested under Subsection (c) indicating how the value claimed to |
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be exempt under Section 22.01(f) was determined is a violation of |
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Section 22.01 and the chief appraiser shall apply a penalty in an |
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amount equal to 10 percent of the total amount of taxes that would |
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have been imposed on the property for that year by taxing units |
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participating in the appraisal district but for the exemption under |
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Section 22.01(f). |
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SECTION 3. This Act applies beginning with the tax year that |
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begins January 1, 2016. |
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SECTION 4. This Act takes effect on the date on which the |
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constitutional amendment proposed by the 84th Legislature, Regular |
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Session, 2015, authorizing the legislature to exempt from ad |
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valorem taxation income-producing tangible personal property |
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valued at less than $50,000 takes effect, if that constitutional |
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amendment is approved by the voters. If that constitutional |
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amendment is not approved by the voters, this Act has no effect. |