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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the commissioners court of a county to |
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exempt the inventory of certain retail businesses from ad valorem |
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taxation by the county. |
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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 11.37 to read as follows: |
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Sec. 11.37. RETAIL INVENTORY. (a) A person is entitled to |
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an exemption from taxation by a county of the appraised value of the |
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person's inventory held for sale at retail if the exemption is |
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adopted by the commissioners court of the county in the manner |
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provided by law for official action by the commissioners court. |
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(b) The exemption provided by Subsection (a) and adopted by |
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a commissioners court applies to: |
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(1) the tax year: |
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(A) in which the exemption is adopted by the |
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commissioners court if officially adopted before April 15; or |
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(B) immediately following the tax year in which |
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the exemption is adopted by the commissioners court if officially |
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adopted on or after April 15; and |
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(2) the four tax years following that tax year. |
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(c) The exemption provided by Subsection (a) does not apply |
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to: |
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(1) real property; |
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(2) a dealer's motor vehicle inventory, as defined by |
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Section 23.121; |
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(3) a dealer's heavy equipment inventory, as defined |
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by Section 23.1241; |
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(4) a dealer's vessel and outboard motor inventory, as |
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defined by Section 23.124; or |
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(5) retail manufactured housing inventory, as defined |
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by Section 23.127. |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year that begins on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect January 1, 2018, but only |
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if the constitutional amendment proposed by the 85th Legislature, |
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Regular Session, 2017, authorizing the legislature to permit one or |
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more political subdivisions of this state to exempt from ad valorem |
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taxation a person's inventory held for sale at retail is approved by |
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the voters. If that amendment is not approved by the voters, this |
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Act has no effect. |