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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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tangible personal property used by the owner of the property to |
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manufacture, process, or fabricate tangible personal property for |
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ultimate sale. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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adding Section 11.36 to read as follows: |
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Sec. 11.36. PROPERTY USED IN MANUFACTURING. The owner of |
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tangible personal property that is exempted from the sales and use |
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tax under Section 151.318 is entitled to an exemption from ad |
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valorem taxation of the appraised value of the property if the |
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property is used by the owner to manufacture, process, or fabricate |
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tangible personal property for ultimate sale. |
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SECTION 2. Section 11.43, Tax Code, is amended by adding |
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Subsection (q) to read as follows: |
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(q) The application form for an exemption authorized by |
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Section 11.36 must require an applicant to submit with the |
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application: |
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(1) a copy of the issued exemption certificate |
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claiming the exemption under Section 151.318 of the property |
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described in the application; or |
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(2) if the applicant is unable to obtain a copy of the |
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exemption certificate described by Subdivision (1), a statement |
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that the property described in the application is exempted from the |
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sales and use tax under Section 151.318. |
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SECTION 3. This Act applies only to an ad valorem tax year |
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that begins on or after the effective date of this Act. |
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SECTION 4. This Act takes effect January 1, 2016, but only |
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if the constitutional amendment proposed by the 84th Legislature, |
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Regular Session, 2015, authorizing the legislature to exempt from |
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ad valorem taxation by one or more political subdivisions tangible |
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personal property used by the owner of the property to manufacture, |
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process, or fabricate tangible personal property for ultimate sale |
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is approved by the voters. If that amendment is not approved by the |
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voters, this Act has no effect. |