(A) (1) In 2001, the Texas Legislature approved Senate Joint Resolution 6, which was subsequently approved by the eligible voters of the State of Texas authorizing a "super freeport" property tax exemption for certain tangible personal property; and
(2) The Texas Legislature in the 80th Legislative Session approved House Bill 621 (hereinafter referred to as "HB 621"), as the enabling statute for the "super freeport" property tax exemption approved by the voters in 2001; and
(3) HB 621 adds Tex. Tax Code, § 11.253 and exempts from property taxes any tangible personal property (other than oil and gas, aircraft, dealer's motor vehicle inventory, dealer's boat inventory, dealer's heavy equipment inventory, and retail manufactured housing) that is located at a site for less than 175 days and is not under the control of the property owner; and
(4) Tex. Tax Code, § 11.253(j) provides that the City Council of the City of Martindale, Texas, may in the manner required for official action by the governing body, provide for the taxation of goods-in-transit exempt provided for pursuant to Tex. Tax Code, § 11.253(b), and not exempt under other law. Moreover, the official action to tax the goods-in-transit must be taken before January 1 of the first tax year in which the City Council of the City of Martindale, Texas, proposes to tax goods-in-transit; and
(5) Tex. Tax Code, § 11.253(j) also provides that "before acting to tax the exempt property, the governing body of the taxing unit must conduct a public hearing as required by Section 1-n(d), Article VIII, Texas Constitution. If the governing body of a taxing unit provides for the taxation of the goods-in-transit as provided by this subsection, the exemption prescribed by Subsection (b) does not apply to that unit. The goods-in-transit remain subject to taxation by the taxing unit until the governing body of the taxing unit, in the manner required for official action, rescinds or repeals its previous action to tax goods-in-transit, or otherwise determines that the exemption prescribed by Subsection (b) will apply to that taxing unit"; and
(6) Tex. Tax Code, § 11.253(j) also provides that a decision to continue taxing super freeport goods can be reversed for a future tax year; and
(7) The City Council of the City of Martindale, Texas, held a public hearing prior to the passage of this section, consistent with HB 621 and Tex. Tax Code, § 11.253; and
(8) The City Council of the City of Martindale, Texas, finds and determines that the super freeport exemption as authorized by Tex. Tax Code, § 11.253 is not in the best interest of the City of Martindale, Texas.
(B) The following terms have the same meaning as defined in Tex. Tax Code, § 11.253, as amended. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
DEALER'S MOTOR VEHICLE INVENTORY, DEALER'S VESSEL AND OUTBOARD MOTOR INVENTORY, DEALER'S HEAVY EQUIPMENT INVENTORY, and RETAIL MANUFACTURED HOUSING INVENTORY. Have the meanings assigned by Tex. Tax Code, Ch. 23, Subchapter B, as amended.
GOODS-IN-TRANSIT. Tangible personal property that:
(a) Is acquired in or imported into this state to be forwarded to another location in this state or outside this state;
(b) Is detained at a location in this state in which the owner of the property does not have a direct or indirect ownership interest for assembling, storing, manufacturing, processing or fabricating purposes by the person who acquired or imported the property;
(c) Is transported to another location in this state or outside this state not later than 175 days after the date the person acquired the property in or imported the property into this state; and
(d) Does not include oil, natural gas, petroleum products, aircraft, dealer's motor vehicle inventory, dealer's vessel and outboard motor inventory, dealer's heavy equipment inventory or retail manufactured housing inventory.
LOCATION. A physical address.
PETROLEUM PRODUCT. A liquid or gaseous material that is an immediate derivative of the refining of oil or natural gas.
(C) A person is not entitled to an exemption from taxation of the appraised value of that portion of the person's property that consists of goods-in-transit. A person's property consisting of goods-in-transit is hereby subject to ad valorem taxation pursuant to Tex. Tax Code, § 11.253, as amended.
(Ord. 07-234, passed 11-20-2007)