88R7058 DRS-F
 
  By: Huffman S.B. No. 2289
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exemption from ad valorem taxation of certain
  tangible personal property held by a manufacturer of medical or
  biomedical products as a finished good or used in the manufacturing
  or processing of medical or biomedical products.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
  adding Section 11.36 to read as follows:
         Sec. 11.36.  MEDICAL OR BIOMEDICAL PROPERTY.  (a)  In this
  section:
               (1)  "Medical or biomedical property" means tangible
  personal property that is:
                     (A)  stored, used, or consumed in the
  manufacturing or processing of medical or biomedical products by a
  medical or biomedical manufacturer; or
                     (B)  intended for use in the diagnosis, cure,
  mitigation, treatment, or prevention of a condition or disease or
  in medical or biomedical research, including the invention,
  development, and dissemination of materials, tools, technologies,
  processes, and similar means for translating and applying medical
  and scientific research for practical applications to advance
  public health, including:
                           (i)  devices;
                           (ii)  therapeutics;
                           (iii)  pharmaceuticals;
                           (iv)  personal protective equipment;
                           (v)  tools, apparatuses, instruments,
  implants, or other similar or related component parts or
  accessories;
                           (vi)  property exempted under Section
  151.318 from the taxes imposed by Chapter 151; and
                           (vii)  manufacturing inventories, including
  finished goods.
               (2)  "Medical or biomedical manufacturing facility"
  means a facility at which a person conducts manufacturing or
  processing of medical or biomedical products for the purpose of
  development and commercialization of products to advance public
  health.
         (b)  A person is entitled to an exemption from taxation of
  medical or biomedical property the person owns or leases that is
  located in a medical or biomedical manufacturing facility that the
  person owns or leases.
         (c)  Notwithstanding Section 11.14(c), the governing body of
  a taxing unit may not provide for taxation of medical or biomedical
  property exempted under this section.
         SECTION 2.  Section 11.42(d), Tax Code, is amended to read as
  follows:
         (d)  A person who acquires property after January 1 of a tax
  year may receive an exemption authorized by Section 11.17, 11.18,
  11.19, 11.20, 11.21, 11.23, 11.231, [or] 11.30, or 11.36 for the
  applicable portion of that tax year immediately on qualification
  for the exemption.
         SECTION 3.  Section 11.43(c), Tax Code, is amended to read as
  follows:
         (c)  An exemption provided by Section 11.13, 11.131, 11.132,
  11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
  11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
  11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, [or] 11.35, or
  11.36, once allowed, need not be claimed in subsequent years, and
  except as otherwise provided by Subsection (e), the exemption
  applies to the property until it changes ownership or the person's
  qualification for the exemption changes.  However, except as
  provided by Subsection (r), the chief appraiser may require a
  person allowed one of the exemptions in a prior year to file a new
  application to confirm the person's current qualification for the
  exemption by delivering a written notice that a new application is
  required, accompanied by an appropriate application form, to the
  person previously allowed the exemption.  If the person previously
  allowed the exemption is 65 years of age or older, the chief
  appraiser may not cancel the exemption due to the person's failure
  to file the new application unless the chief appraiser complies
  with the requirements of Subsection (q), if applicable.
         SECTION 4.  This Act applies only to a tax year that begins
  on or after the effective date of this Act.
         SECTION 5.  This Act takes effect January 1, 2024, but only
  if the constitutional amendment proposed by the 88th Legislature,
  Regular Session, 2023, to authorize the legislature to exempt from
  ad valorem taxation certain tangible personal property held by a
  manufacturer of medical or biomedical products as a finished good
  or used in the manufacturing or processing of medical or biomedical
  products is approved by the voters.  If that amendment is not
  approved by the voters, this Act has no effect.