Example Resolution to Continue to Tax Goods-in-Transit PDF Print E-mail

9/2/11

Senate Bill 1, 82nd Legislature, First Called Special Session, amended Tax Code Section 11.253 to automatically exempt goods-in-transit from property taxation, unless action is taken by the board of trustees to tax this property after conducting a public hearing on this issue on or after October 1, 2011.  Senate Bill 1 provides that prior action taken to tax goods-in-transit is effectively rescinded by the passage of Senate Bill 1, with the exception of school districts that pledged taxes from this property for payment of debt obligations.  School officials should carefully review with an attorney any previously recorded pledge of taxes to understand if there is a need to hold a public hearing and adopt a resolution in order to perfect the district's authority to continue to tax this property. 

TASBO is receiving requests for an example board resolution which is provided below.  School officials should consult with an attorney on this matter.

 

A RESOLUTION OF THE __________ INDEPENDENT SCHOOL DISTRICT TO TAX TANGIBLE PERSONAL PROPERTY IN TRANSIT WHICH WOULD OTHERWISE BE EXEMPT PURSUANT TO TEXAS TAX CODE, SECTION 11.253

            WHEREAS, the 82nd Texas Legislature in it First Called Session has enacted Senate Bill 1, including Section 48.02 thereof to take effect on October 1, 2011, which would amend Texas Tax Code § 11.253 to exempt from taxation certain tangible personal property that is acquired in or imported into this state to be forwarded to another location in this state or outside this state; is stored under a contract of bailment by a public warehouse operator at one or more public warehouse facilities in this state that are not in any way owned or controlled by the owner of the personal property for the account of the person who acquired or imported the property; 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 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 (“goods-in-transit”), which property has been subject to taxation in the past; and

            WHEREAS, Texas Tax Code §11.253 as amended allows the governing body of a taxing unit, after conducting a public hearing, to provide for the continued taxation of such goods-in-transit; and

            WHEREAS, the Board of Trustees of the __________ Independent School District, having conducted a public hearing as required by Section 1-n (d), Article VIII, Texas Constitution, is of the opinion that it is in the best interests of the district to continue to tax such goods-in-transit; 

            NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES FOR THE __________ INDEPENDENT SCHOOL DISTRICT THAT:

            The goods-in-transit, as defined Texas Tax Code 11.253(a)(2), as amended by Senate Bill 1, enacted by the 82nd Texas Legislature in its First Called Session, shall remain subject to taxation by the __________ Independent School District.

 

Dated this ___ day of October, 2011.