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HomeMy WebLinkAboutOrdinance No. 2011-1922 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2011-1922 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AMENDING CHAPTER 8 OF THE CODE OF ORDINANCES OF THE CITY OF THE COLONY, TEXAS, ENTITLED "FINANCE AND TAXATION" BY ADDING A NEW SECTION 8-13, 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, AS AMENDED; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A REPEALER CLAUSE; AND PROVIDING FOR SAID ORDINANCE TO TAKE IMMEDIATE EFFECT. WHEREAS, the Texas Legislature in the 80th Legislative Session approved House Bill 621 (hereinafter referred to as "HB 621 (2001)"), as the enabling statute for the "super freeport" or goods-in-transit property tax exemption approved by the voters in 2001; and WHEREAS, pursuant to HB 621 (2001) the City Council of the City of The Colony, 'T'exas, on December 3, 2007, approved Resolution Number 07-103, which established the taxation of goods-in-transit; and WHEREAS, in the First Called Session in 2011, the Texas Legislature approved Senate Bill 1 (hereinafter referred to as "SB 1 (2011)"), which amended Section 11.253 of the Texas Tax Code addressing the taxation of goods-in-transit; and WHEREAS, Section 11.2530-1) of the Texas Tax Code, as added by SB 1 (2011), provides that the City Council of the City of The Colony, Texas, "may not tax such goods-in- transit in a tax year that begins on or after January 1, 2012, unless the governing body of the taxing unit takes action on or after October 1, 2011, in the manner required for official action by the governing body, to provide for the taxation of the goods-in-transit. The official action to tax the goods-in-transit must be taken before January 1 of the first tax year in which the governing body proposes to tax goods-in-transit. 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 unlit"; and WHEREAS, the City Council of the City of The Colony, Texas, held a public hearing prior to the passage of this Ordinance, consistent with SB 1 (2011), and Section 11.2530-1) of the Texas Tax Code; and WHEREAS, the City Council of the City of The Colony, Texas, find and determines that the goods-in-transit exemption as authorized by Section 11.253 of the Texas Tax Code is not in the best interest of the City of The Colony, Texas, and that goods-in-transit should be subject to ad valorem taxation. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: Section 1. FINDINGS INCORPORATED The findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. Section 2. That Chapter 8 of the Code of Ordinances of the City of The Colony, Texas, is amended by adding a new section 8-13, entitled "Taxation of tangible personal property in transit" which shall read as follows: "Sec. 8-13. 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 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; (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. (5) The terms "Bailee" and "Warehouse" have the meanings assigned by Section 7.102 of the Texas Business and Commerce Code, as amended. (6) The term "Public Warehouse Operator" means a person that: (A) is both a bailee and a warehouse; and (B) stores under a contract of bailment, at one or more public warehouse facilities, tangible personal property that is owned by other persons solely for the account of those persons and not for the operator's account. (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 or resolution, including Resolution No. 07-103, 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 become effective immediately upon its passage. DULY PASSED by the City Council of the City of The Colony, Texas, on this the 18th day of October, 2011. APPROVED: r Joe McCourry, Mayor ATTEST: C `risfie Wilson, City Secretary Y; SCi APPROVED AS TO FORM: ` Jeff Moore, City Attorney