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A BILL TO BE ENTITLED
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AN ACT
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relating to the calculation of the penalty for filing a late |
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application for certain ad valorem tax exemptions and allocations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.4391, Tax Code, is amended by |
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amending Subsection (b) and adding Subsection (b-1) to read as |
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follows: |
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(b) Except as provided by Subsection (b-1), if [If] the |
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application is approved, the property owner is liable to each |
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taxing unit allowing the exemption for a penalty in an amount equal |
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to 10 percent of the difference between the amount of tax imposed by |
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the taxing unit on the inventory or property, a portion of which |
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consists of freeport goods, and the amount that would otherwise |
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have been imposed up to a maximum penalty of 10 percent of the tax |
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imposed with the exemption. |
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(b-1) If the total amount of the penalties for which a |
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property owner is liable under Subsection (b) to the taxing units |
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allowing the exemption is less than $5,000, the amount of the |
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penalty for which the owner is liable to each taxing unit allowing |
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the exemption is computed by multiplying $5,000 by a fraction, the |
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numerator of which is the amount of the penalty to which that taxing |
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unit is entitled as calculated under that subsection and the |
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denominator of which is the total amount of the penalties to which |
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the taxing units allowing the exemption are entitled as calculated |
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under that subsection. |
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SECTION 2. Section 21.10, Tax Code, is amended by amending |
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Subsection (b) and adding Subsection (b-1) to read as follows: |
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(b) Except as provided by Subsection (b-1), if [If] the |
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application is approved, the property owner is liable to each |
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taxing unit for a penalty in an amount equal to 10 percent of the |
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difference between the amount of tax imposed by the taxing unit on |
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the property without the allocation and the amount of tax imposed on |
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the property with the allocation up to a maximum penalty of 10 |
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percent of the tax imposed with the allocation. |
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(b-1) If the total amount of the penalties for which a |
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property owner is liable under Subsection (b) to the taxing units |
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that tax the property is less than $5,000, the amount of the penalty |
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for which the owner is liable to each taxing unit that taxes the |
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property is computed by multiplying $5,000 by a fraction, the |
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numerator of which is the amount of the penalty to which that taxing |
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unit is entitled as calculated under that subsection and the |
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denominator of which is the total amount of the penalties to which |
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the taxing units that tax the property are entitled as calculated |
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under that subsection. |
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SECTION 3. Section 11.4391, Tax Code, as amended by this |
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Act, applies only to an application for an exemption for freeport |
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goods under Section 11.251, Tax Code, filed on or after the |
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effective date of this Act. |
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SECTION 4. Section 21.10, Tax Code, as amended by this Act, |
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applies only to an application for an allocation under Section |
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21.09, Tax Code, filed on or after the effective date of this Act. |
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SECTION 5. This Act takes effect September 1, 2019. |