Honorable Dustin Burrows, Chair, House Committee on Ways & Means
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
SB1013 by Hughes (Relating to the calculation of the penalty for filing a late application for certain ad valorem tax exemptions and allocations.), As Engrossed
No fiscal implication to the State is anticipated.
The bill would amend Chapter 11 of the Tax Code, regarding taxable property and exemptions, to provide that if a late application for freeport exemption is approved, the maximum penalty for which a property owner would be liable to each taxing unit allowing the exemption is 10 percent of the tax imposed with the exemption.
The bill would amend Chapter 21 of the Tax Code, regarding taxable situs, to provide that if a late application for interstate allocation is approved, the maximum penalty for which a property owner would be liable to each taxing unit is 10 percent of the tax imposed with the allocation.
The bill's provisions setting maximum penalties for an approved late freeport exemption application and for an approved late interstate allocation application would create a cost to local taxing units. The number of approved late applications in which the current penalty would exceed the proposed maximum is unknown, thus the cost cannot be estimated.
The bill would take effect September 1, 2019.
Local Government Impact
The bill's provisions setting maximum penalties for an approved late freeport exemption application and for an approved late interstate allocation application would create a cost to local taxing units.