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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption of inventory of certain retail businesses |
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from ad valorem taxation by a school district. |
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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 |
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by adding Section 11.35 to read as follows: |
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Sec. 11.35. RETAIL INVENTORY. (a) A person is entitled to |
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an exemption from taxation by a school district of the appraised |
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value of the person's inventory held for sale at retail. |
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(b) The exemption provided by Subsection (a) does not apply |
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to: |
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(1) real property; |
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(2) a dealer's motor vehicle inventory, as defined by |
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Section 23.121; |
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(3) a dealer's heavy equipment inventory, as defined |
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by Section 23.1241; |
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(4) a dealer's vessel and outboard motor inventory, as |
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defined by Section 23.124; or |
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(5) retail manufactured housing inventory, as defined |
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by Section 23.127. |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year that begins on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect January 1, 2018, but only |
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if the constitutional amendment proposed by the 85th Legislature, |
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Regular Session, 2017, authorizing the legislature to exempt from |
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ad valorem taxation by one or more political subdivisions of this |
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state a person's inventory held for sale at retail is approved by |
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the voters. If that amendment is not approved by the voters, this |
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Act has no effect. |