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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 held by a manufacturer of medical or |
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biomedical products as a finished good or used in the manufacturing |
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or processing of medical or biomedical products. |
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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. MEDICAL OR BIOMEDICAL PROPERTY. (a) In this |
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section: |
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(1) "Medical or biomedical property" means tangible |
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personal property that is: |
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(A) stored, used, or consumed in the |
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manufacturing or processing of medical or biomedical products by a |
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medical or biomedical manufacturer; or |
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(B) intended for use in the diagnosis, cure, |
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mitigation, treatment, or prevention of a condition or disease or |
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in medical or biomedical research, including the invention, |
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development, and dissemination of materials, tools, technologies, |
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processes, and similar means for translating and applying medical |
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and scientific research for practical applications to advance |
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public health, including: |
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(i) devices; |
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(ii) therapeutics; |
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(iii) pharmaceuticals; |
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(iv) personal protective equipment; |
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(v) tools, apparatuses, instruments, |
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implants, or other similar or related component parts or |
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accessories; |
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(vi) property exempted under Section |
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151.318 from the taxes imposed by Chapter 151; and |
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(vii) manufacturing inventories, including |
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finished goods. |
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(2) "Medical or biomedical manufacturing facility" |
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means a facility at which a person conducts manufacturing or |
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processing of medical or biomedical products for the purpose of |
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development and commercialization of products to advance public |
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health. |
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(b) A person is entitled to an exemption from taxation of |
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medical or biomedical property the person owns or leases that is |
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located in a medical or biomedical manufacturing facility that the |
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person owns or leases. |
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(c) Notwithstanding Section 11.14(c), the governing body of |
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a taxing unit may not provide for taxation of medical or biomedical |
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property exempted under this section. |
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SECTION 2. Section 11.42(d), Tax Code, is amended to read as |
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follows: |
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(d) A person who acquires property after January 1 of a tax |
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year may receive an exemption authorized by Section 11.17, 11.18, |
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11.19, 11.20, 11.21, 11.23, 11.231, [or] 11.30, or 11.36 for the |
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applicable portion of that tax year immediately on qualification |
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for the exemption. |
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SECTION 3. Section 11.43(c), Tax Code, is amended to read as |
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follows: |
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(c) An exemption provided by Section 11.13, 11.131, 11.132, |
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11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, |
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11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231, |
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11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, [or] 11.35, or |
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11.36, once allowed, need not be claimed in subsequent years, and |
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except as otherwise provided by Subsection (e), the exemption |
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applies to the property until it changes ownership or the person's |
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qualification for the exemption changes. However, except as |
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provided by Subsection (r), the chief appraiser may require a |
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person allowed one of the exemptions in a prior year to file a new |
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application to confirm the person's current qualification for the |
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exemption by delivering a written notice that a new application is |
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required, accompanied by an appropriate application form, to the |
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person previously allowed the exemption. If the person previously |
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allowed the exemption is 65 years of age or older, the chief |
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appraiser may not cancel the exemption due to the person's failure |
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to file the new application unless the chief appraiser complies |
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with the requirements of Subsection (q), if applicable. |
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SECTION 4. This Act applies only to a tax year that begins |
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on or after the effective date of this Act. |
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SECTION 5. This Act takes effect January 1, 2024, but only |
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if the constitutional amendment proposed by the 88th Legislature, |
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Regular Session, 2023, to authorize the legislature to exempt from |
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ad valorem taxation certain tangible personal property held by a |
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manufacturer of medical or biomedical products as a finished good |
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or used in the manufacturing or processing of medical or biomedical |
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products is approved by the voters. If that amendment is not |
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approved by the voters, this Act has no effect. |