Bill Text: TX HB3776 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the phasing out by 2025 of the ad valorem taxation by a school district of the tangible personal property a person owns that consists of inventory.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-03-23 - Referred to Ways & Means [HB3776 Detail]
Download: Texas-2015-HB3776-Introduced.html
| 84R12318 TJB-D | ||
| By: Workman | H.B. No. 3776 | |
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| relating to the phasing out by 2025 of the ad valorem taxation by a | ||
| school district of the tangible personal property a person owns | ||
| that consists of inventory. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by | ||
| adding Section 11.35 to read as follows: | ||
| Sec. 11.35. INVENTORY. (a) A person is entitled to an | ||
| exemption from taxation by a school district of the tangible | ||
| personal property the person owns that consists of inventory. | ||
| (b) This subsection expires January 1, 2025. Subsection (a) | ||
| applies to the taxation by a school district of tangible personal | ||
| property that consists of inventory only for the 2025 and | ||
| subsequent tax years. The taxation by a school district of tangible | ||
| personal property that consists of inventory for the 2016, 2017, | ||
| 2018, 2019, 2020, 2021, 2022, 2023, and 2024 tax years is governed | ||
| by this subsection. A person is entitled to an exemption from | ||
| taxation by a school district of the following percentages of the | ||
| appraised value of that portion of the tangible personal property | ||
| the person owns that consists of inventory for which the person is | ||
| not otherwise entitled to an exemption from taxation: | ||
| (1) for the 2016 tax year, 10 percent of the appraised | ||
| value of the inventory; | ||
| (2) for the 2017 tax year, 20 percent of the appraised | ||
| value of the inventory; | ||
| (3) for the 2018 tax year, 30 percent of the appraised | ||
| value of the inventory; | ||
| (4) for the 2019 tax year, 40 percent of the appraised | ||
| value of the inventory; | ||
| (5) for the 2020 tax year, 50 percent of the appraised | ||
| value of the inventory; | ||
| (6) for the 2021 tax year, 60 percent of the appraised | ||
| value of the inventory; | ||
| (7) for the 2022 tax year, 70 percent of the appraised | ||
| value of the inventory; | ||
| (8) for the 2023 tax year, 80 percent of the appraised | ||
| value of the inventory; and | ||
| (9) for the 2024 tax year, 90 percent of the appraised | ||
| value of the inventory. | ||
| SECTION 2. Subchapter E, Chapter 42, Education Code, is | ||
| amended by adding Section 42.2512 to read as follows: | ||
| Sec. 42.2512. ADDITIONAL STATE AID FOR EXEMPTION OF | ||
| INVENTORY. (a) Notwithstanding Section 42.2516 or any other | ||
| provision of this chapter, a school district is entitled to | ||
| additional state aid to the extent that state aid under this chapter | ||
| based on the determination of the school district's taxable value | ||
| of property as provided under Subchapter M, Chapter 403, Government | ||
| Code, does not fully compensate the district for ad valorem tax | ||
| revenue lost due to the exemption for inventory under Section | ||
| 11.35, Tax Code. | ||
| (b) The commissioner, using information provided by the | ||
| comptroller, shall compute the amount of additional state aid to | ||
| which a district is entitled under Subsection (a). A determination | ||
| by the commissioner under this section is final and may not be | ||
| appealed. | ||
| (c) Notwithstanding any other provision of this chapter, in | ||
| computing state aid for the 2016-2017 school year, the taxable | ||
| value of property in a school district shall be determined under | ||
| Subchapter M, Chapter 403, Government Code, as if the exemption for | ||
| inventory under Section 11.35, Tax Code, had been in effect for the | ||
| 2015 tax year. This subsection expires September 1, 2017. | ||
| SECTION 3. This Act applies only to ad valorem taxes imposed | ||
| for a tax year that begins on or after the effective date of this | ||
| Act. | ||
| SECTION 4. This Act takes effect January 1, 2016, but only | ||
| if the constitutional amendment proposed by the 84th Legislature, | ||
| Regular Session, 2015, authorizing the legislature to phase out by | ||
| 2025 the ad valorem taxation by a school district of the tangible | ||
| personal property a person owns that consists of inventory is | ||
| approved by the voters. If that amendment is not approved by the | ||
| voters, this Act has no effect. | ||
