HomeMy WebLinkAbout1785 09-11-2007ORDINANCE NO. 1785
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EULESS,
TEXAS, AMENDING CHAPTER 78, ARTICLE I, OF THE CODE OF
ORDINANCES OF THE CITY OF EULESS, TEXAS, BY ADDING A NEW
SECTION 78 -2, ENTITLED "TAXATION OF TANGIBLE PERSONAL
PROPERTY IN TRANSIT"; PROVIDING FOR THE AD VALOREM
TAXATION OF TANGIBLE PERSONAL PROPERTY IN TRANSIT OR
"SUPER FREEPORT" GOODS PURSUANT TO SECTION 11.253 OF
THE TEXAS TAX CODE; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING A REPEALER CLAUSE; AND PROVIDING FOR SAID
ORDINANCE TO TAKE IMMEDIATE EFFECT.
WHEREAS, 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
WHEREAS, 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
WHEREAS, HB 621 adds Section 11.253 to the Texas Tax Code 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
WHEREAS, Section 11.2530) of the Texas Tax Code provides that the City
Council of the City of Euless, Texas, may in the manner required for official action by
the governing body, provide for the taxation of goods -in- transit otherwise exempt
pursuant to Section 11.253(b) of the Texas Tax Code, 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 Euless, Texas, proposes to
tax goods -in- transit; and
WHEREAS, Section 11.2530) of the Texas Tax Code 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
WHEREAS, Section 11.253 0) of the Texas Tax Code also provides that a
decision to continue taxing super freeport goods can be reversed for a future tax year;
and
WHEREAS, the City Council of the City of Euless, Texas, held a public hearing
prior to the passage of this Ordinance, consistent with HB 621 and Section 11.253 of
the Texas Tax Code; and
WHEREAS, the City Council of the City of Euless, Texas, find and determines
that the super freeport exemption as authorized by Section 11.253 of the Texas Tax
Code is not in the best interest of the City of Euless, Texas.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF EULESS, TEXAS:
SECTION 1
FINDINGS INCORPORATED — THAT the findings set forth above are
incorporated into the body of this Ordinance as if fully set forth herein.
SECTION 2
THAT Chapter 78, Article I, of the Code of Ordinances of the City of Euless,
Texas, is amended by adding a new Section 78 -2, entitled, "Taxation of tangible
personal property in transit" which shall hereafter be and read as follows:
"Sec 78 -2. Taxation of tangible personal property in transit.
(a) Definitions. The following terms have the same meaning as defined in Section
11.253 of the Texas Tax Code, as amended.
(1) The terms "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
Subchapter B, Chapter 23 of the Texas Tax Code, as amended.
(2) The term "Goods -in- transit" is defined to mean 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;
Ordinance No. 1785, Page 2 of 4
(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.
(3) The term "Location" means a physical address.
(4) The term "Petroleum product" means a liquid or gaseous material that is
an immediate derivative of the refining of oil or natural gas.
(b) 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 Section 11.253 of the Texas Tax Code, as amended."
SECTION 3
SEVERABILITY CLAUSE. It is hereby declared to be the intention of the City
Council that the phrases, clauses, sentences, paragraphs and sections of this ordinance
are severable, and if any phrase, clause, sentence, paragraph or section of this
ordinance shall be declared unconstitutional by the valid judgment or decree of any
court of competent jurisdiction, such unconstitutionality shall not affect any of the
remaining phrases, clauses, sentences, paragraphs and sections of this ordinance,
since the same would have been enacted by the City Council without the incorporation
of this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or
section.
SECTION 4
REPEALER CLAUSE. Any provision of any prior ordinance of the City whether
codified or uncodified, which are in conflict with any provision of the Ordinance, are
hereby repealed to the extent of the conflict, but all other provisions of the ordinances of
the City whether codified or uncodified, which are not in conflict with the provisions of
this Ordinance, shall remain in full force and effect.
SECTION 5
EFFECTIVE DATE. This Ordinance shall be in full force and effect after its
passage and publication as provided by the Euless City Charter and the laws of the
State of Texas.
Ordinance No. 1785, Page 3 of 4
PRESENTED AND APPROVED ON FIRST AND FINAL READING at a regular
meeting of the Euless City Council on the 11 th day of September, 2007, by a vote of
7 ayes, o nays, and o abstentions.
APPROVED:
Y1"1Y41'L -
Mary Lib galeh, Mayor
ATTEST:
Susan Crim, TRMC, City Secretary
APPROVED AS TO FORM:
Ordinance No. 1785, Page 4 of 4