H.B. No. 2859
 
 
 
 
AN ACT
  relating to the exemption from ad valorem taxation of precious
  metal held in a precious metal depository located in this state.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
  adding Section 11.141 to read as follows:
         Sec. 11.141.  PRECIOUS METAL HELD IN PRECIOUS METAL
  DEPOSITORY. (a) For purposes of this section:
               (1)  "Precious metal" has the meaning assigned by
  Section 2116.001, Government Code.
               (2)  "Precious metal depository" means a depository
  that:
                     (A)  is primarily engaged in the business of
  providing precious metal storage to the general public; and 
                     (B)  maintains sufficient insurance to cover
  precious metal deposited in the depository. 
         (b)  A person is entitled to an exemption from taxation of
  the precious metal that the person owns and that is held in a
  precious metal depository located in this state, regardless of
  whether the precious metal is held or used by the person for the
  production of income.
         (c)  Notwithstanding Section 11.14(c), the governing body of
  a taxing unit may not provide for the taxation of precious metal
  exempted from taxation under Subsection (b).
         SECTION 2.  Section 11.42(b), Tax Code, is amended to read as
  follows:
         (b)  An exemption authorized by Section 11.11 or 11.141 is
  effective immediately on qualification for the exemption.
         SECTION 3.  Section 11.43(a), Tax Code, is amended to read as
  follows:
         (a)  To receive an exemption, a person claiming the
  exemption, other than an exemption authorized by Section 11.11,
  11.12, 11.14, 11.141, 11.145, 11.146, 11.15, 11.16, 11.161, or
  11.25 [of this code], must apply for the exemption. To apply for an
  exemption, a person must file an exemption application form with
  the chief appraiser for each appraisal district in which the
  property subject to the claimed exemption has situs.
         SECTION 4.  Section 11.141, Tax Code, as added by this Act,
  applies only to a tax year beginning on or after January 1, 2020.
         SECTION 5.  This Act takes effect January 1, 2020, but only
  if the constitutional amendment proposed by the 86th Legislature,
  Regular Session, 2019, authorizing the legislature to exempt from
  ad valorem taxation precious metal held in a precious metal
  depository located in this state is approved by the voters. If that
  amendment is not approved by the voters, this Act has no effect.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2859 was passed by the House on May 3,
  2019, by the following vote:  Yeas 137, Nays 6, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2859 was passed by the Senate on May
  20, 2019, by the following vote:  Yeas 27, Nays 4.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor