Board Agenda - December 11, 2007

IX. Public Hearing on HB 621 and Resolution to Tax Tangible Personal Property in Transit Tax Code, Section 11.253

Presenter: Richard Matkin

Purpose: A - Request decision - closure required

Time: 10 minutes

Description:

The 80th Texas Legislature enacted House Bill 621 to take effect on January 1, 2008, which will amend Tex. Tax Code § 11.253, Tangible Personal Property in Transit, to exempt from taxation certain tangible personal property held temporarily at a location in this state for assembling, storing, manufacturing, processing or fabricating purposes (goods-in-transit) which property has been subject to taxation in the past.

The exemption will automatically become effective for 2008, if the District takes no action. In order to continue to be able to tax this property, the District must take action before January 1, 2008, by conducting a public hearing and passing a resolution which states the District's intent to continue to this tangible personal property. Resolution is attached.

Recommendation:

The administration recommends approval of the resolution to continue to tax tangible personal property in-transit.

Business Impact:

With the current school finance target revenue legislation in place, any impact of not continuing to tax this property would primarily impact the Debt Service tax revenue received.

Summary:

Appendix:

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