G-11-10-06-10C12 - 10/6/2011ORDINANCE NO. (1't1'to'X- 10612—
AN
0612 -
AN ORDINANCE PROVIDING FOR THE CONTINUED TAXATION OF GOODS -IN -
TRANSIT AS DEFINED IN TEXAS TAX CODE SECTION 11.253(A)(2); AND
PROVIDING FOR A SAVINGS CLAUSE AND REPEALING CONFLICTING
ORDINANCES AND RESOLUTIONS.
WHEREAS, the 80th Texas Legislature in Regular Session enacted House Bill
621 to take effect on January 1, 2008, which amended Tex. Tax Code §11.253 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; and
WHEREAS, the 82nd Texas Legislature in Special Session, enacted Senate Bill
1, to take effect on September 1, 2011, which would require a taxing unit to take action,
in the required manner, after October 1, 2011, to provide for the taxation of goods -in -
transit; and
WHEREAS, Tex. Tax Code §11.253(j) 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 City Council conducted a public hearing as required by Section
1-n(d), Article VIII, Texas Constitution, and is of the opinion that it is in the best interests
of the City to continue to tax such goods -in -transit; Now Therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS:
O:\wdox\SCCInts\0112\ 1104\MUNICIPAL\00233729.DOC
The goods -in -transit, as defined Texas Tax Code Section 11.253(a)(2), shall
remain subject to taxation by the City of Round Rock, Texas.
11.
A. All ordinances, parts of ordinances, or resolutions in conflict herewith are
expressly repealed.
B. The invalidity of any section or provision of this ordinance shall not
invalidate other sections or provisions thereof.
C. The City Council hereby finds and declares that written notice of the date,
hour, place and subject of the meeting at which this Ordinance was adopted was posted
and that such meeting was open to the public as required by law at all times during
which this Ordinance and the subject matter hereof were discussed, considered and
formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas
Government Code, as amended.
Alternative 1.
By motion duly made, seconded and passed with an affirmative vote of all the
Council members present, the requirement for reading this ordinance on two separate
days was dispensed with.
READ, PASSED, and ADOPTED on first reading this day of
QD �.•�� , 2011.
Alternative 2.
READ and APPROVED on first reading this the day of
, 2011.
2
READ, APPROVED and ADOPTED on second reading this the day of
, 2011.
ALAN MCGRAW, Mayor
City of Round Rock, Texas
ATTEST:
e4444A.-,et6t6-
SARA L. WHITE, City Secretary
3
City Council Agenda Summary Sheet
Agenda Item No. 10C12.
Consider an ordinance providing for the continued taxation of Goods -in -transit. (First
Agenda Caption: Reading)
Meeting Date: October 6, 2011
Department: Finance
Staff Person making presentation: Cheryl Delaney
Finance Director
Item Summary:
The 82nd Texas Legislature enacted SB 326 which exempts from taxation certain tangible personal property held
temporarily at a location in the state for the assembling, storing, manufacturing, processing or fabricating purposes
(goods -in -transit). This type of property has been subject to taxation in the past. The law allows for municipalities
to continue to tax this property after holding one public hearing and adopting an ordinance taxing such goods -in -
transit by the end of the calendar year. If the resolution is not approved, this would reduce the amount of property
tax revenue the City receives by approximately $80,000. A similar item was brought before the council in 2007 and
was approved.
SB 326 amends the Tax Code to prohibit taxing units from taxing 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 September 1, 2011, in the
manner required for official action by the governing body, to provide for the taxation of the goods -in -transit. If the
governing body fails to pass the required resolution by the indicated date, the new legislation will allow an
exemption from taxation for such goods.
A public hearing of this item was also heard on this date.
Cost: N/A
Source of Funds: N/A
Date of Public Hearing (if required): N/A
Recommended Action: Approval