G-07-10-25-10D2 - 10/25/2007 ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 1, SECTION 1.700, CODE
OF ORDINANCES (1995 EDITION), CITY OF ROUND ROCK,
TEXAS, BY ADDING SUBSECTION 1.703 TO TAX GOODS IN
TRANSIT WHICH WOULD OTHERWISE BE EXEMPT PURSUANT
TO TEXAS TAX CODE, SECTION 11.253; AND PROVIDING FOR A
SAVINGS CLAUSE AND REPEALING CONFLICTING
ORDINANCES AND RESOLUTIONS.
WHEREAS, the 80th Texas Legislature in Regular Session has
enacted House Bill 621 to take effect on January 1, 2008 , which
added 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, 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 of the City of Round Rock, 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 ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND
ROCK, TEXAS:
0:\wdox\ORDINANC\071025D2.WPD/sls
I.
That Chapter 1, Section 1 . 700, Code of Ordinances (1995
Edition) , City of Round Rock, Texas, is hereby amended to add
sub-section 1 . 703 which shall read as follows :
1.703 GOODS IN TRANSIT
Goods-in-transit, as defined in Tex. Tax Code 11.253(a)(2), as amended by House Bill 621,
enacted by the 8Yh Texas Legislature in Regular Session, shall remain subject to taxation.
II.
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conflict herewith are expressly repealed.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.
READ and APPROVED on first reading this the f day
of ! 2007 .
READ, APPROVED and ADOPTED on second reading this the
day of 2007 .
2
itxELL, r
vyo Round Rock, Texas
AT E T:
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"Ma� juz/h-
CHRISTINE R. MARTINEZ, City Secre! ry
3
DATE: October 18, 2007
SUBJECT: City Council Meeting — October 25, 2007
ITEM: *10D2. Consider an ordinance providing for the continued taxation
of Goods-in-transit. (Second Reading)
Department: Finance
Staff Person: Cindy Demers, Finance Director
Justification:
The 80th Texas Legislature enacted HB 621 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 (good-in-
transit). This type property has been subject to taxation in the past. The law allows
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.
Funding:
Cost: N/A
Source of funds: N/A
Outside Resources: N/A
Background Information•
HB 621 is to take effect on January 1, 2008, which added Tex. Tax Code_11.253 to
exempt from taxation certain personal property held temporarily at the location in
the state of Texas. A public hearing is required to continue to tax such goods-in-
transit.
Public Comment: N/A