Hinojosa’s bill extending freeport exemption deadlines

The text as introduced · 564 words

89R3710 MLH-F

By: Hinojosa of Nueces
S.B. No. 1352

A BILL TO BE ENTITLED

AN ACT

relating to the deadline for filing an application for certain ad

valorem tax exemptions or allocations and the calculation of the

penalty for filing a late application for such an exemption or

allocation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 11.43, Tax Code, is amended by adding

Subsection (d-1) to read as follows:

(d-1) If the chief appraiser extends the deadline for a

property owner to file a rendition statement or property report to

May 15 under Section 22.23(b), the chief appraiser shall also

extend the deadline for the property owner to file an application

for an exemption under Section 11.251 to May 15. For good cause

shown, the chief appraiser may further extend the deadline for

filing an exemption application by written order for a single

period not to exceed 60 days from the deadline prescribed by

Subsection (d).

SECTION 2. Section 11.4391(b), Tax Code, is amended to read

as follows:

(b) If the application is approved, the property owner is

liable to each taxing unit allowing the exemption for a penalty in

an amount equal to the lesser of:

(1) 10 percent of the difference between the amount of

tax imposed by the taxing unit on the inventory or property, a

portion of which consists of freeport goods, and the amount that

would otherwise have been imposed ; or

(2) 10 percent of the amount of tax imposed by the

taxing unit on the inventory or property, a portion of which

consists of freeport goods .

SECTION 3. Section 21.09, Tax Code, is amended by adding

Subsection (b-1) to read as follows:

(b-1) If the chief appraiser extends the deadline for a

property owner to file a rendition statement or property report to

May 15 under Section 22.23(b), the chief appraiser shall also

extend the deadline for the property owner to file an allocation

application form to May 15. For good cause shown, the chief

appraiser shall further extend the deadline for filing an

allocation application form by written order for a period not to

exceed 30 days from the deadline prescribed by Subsection (b).

SECTION 4. Section 21.10(b), Tax Code, is amended to read as

follows:

(b) If the application is approved, the property owner is

liable to each taxing unit for a penalty in an amount equal to the

lesser of:

(1) 10 percent of the difference between the amount of

tax imposed by the taxing unit on the property without the

allocation and the amount of tax imposed on the property with the

allocation ; or

(2) 10 percent of the amount of tax imposed by the

taxing unit on the property with the allocation .

SECTION 5. Section 11.43(d-1), Tax Code, as added by this

Act, and Section 11.4391(b), Tax Code, as amended by this Act, apply

only to an application for an exemption for freeport goods under

Section 11.251, Tax Code, filed on or after the effective date of

this Act.

SECTION 6. Section 21.09(b-1), Tax Code, as added by this

Act, and Section 21.10(b), Tax Code, as amended by this Act, apply

only to an application for an allocation under Section 21.09, Tax

Code, filed on or after the effective date of this Act.

SECTION 7. This Act takes effect September 1, 2025.