2011-190s:Uegallour documents\ordinances1111freeport taxation.doc
ORDINANCE NO. 2011-190
AN ORDINANCE OF THE CITY OF DENTON, TEXAS 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;
AUTHORIZING THE CITY MANAGER TO FORWARD SAID ORDINANCE TO THE
DENTON CENTR.AL APPRAISAL DISTRICT; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the 80�' Texas Legislature enacted Tex. Tax Code, Section 11.253 (Tangible
Personal Property in Transit) which reads, in pertinent part, as follows:
Section 11.253(j): The governing body of a taxing unit, in the manner required
for official action by the governing body, may provide for taxation of goods-in-
transit exempt under Subsection (b) and not exempt under any other law. The
official action to tax the goods-in-transit must be talcen 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; and
WHEREAS, the 82�' Texas Legislature enacted Senate Bill 1 to take effect on January 1,
2012, whicb amended Tex. Tax. Code, Section 11.253 so as to add Subsection (j-1) which reads
as follows:
Subsection (j-1): Notwithstanding Subsection (j) or official action that was talcen
under that Subsection before October 1, 2011, to tax goods-in-transit exempt
under Subsection (b) and not exempt under other law, a taxing unit 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 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 t�ing unit until the
governing body of the taxing unit, in the manner required for official action,
rescinds or repeals its previous action to taa� goods-in-transit or otherwise
determines that the exemption prescribed by Subsection (b) will apply to that
taxing unit; and
WHEREAS, the City Council of the City of Denton, 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 City to continue to tax such goods-in-transit; NOW, THEREFORE;
s:llegal\our documentslordinances1111freeport t�ation.doc
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The goods-in-transit, as defined by Tex. Tax Code, Section 11.253(a)(2)
(Tangible Personal Properly in Transit) enacted by the 80th Texas Legislature in 2007 and as
amended by Senate Bill 1 by the 82�' Texas Legislature in 2011, shall remain subject to taxation
by the City of Denton, Texas.
SECTION 2. If any section, subsection, paragraph, sentence, clause, phrase, or word in
this Ordinance, or application thereof to any person or circumstances is held invalid by any court
of competent jurisdiction, such holding shall not affect the validity of the remaining portions of
this Ordinance, and the City Council of the City of Denton, Texas hereby declares it would have
enacted such remaining portions despite any invalidity.
SECTION 3. All provisions of the ordinances of the City of Denton in conflict with the
provision of this Ordinance are hereby repealed, and a11 other provisions of the ordinances of the
City or Denton, not in conflict with the provision of this Ordinance, shall remain in full force and
effect.
SECTION 4. This Ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the � day of , 2011.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: -
APPRO ED AS O LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY: ./
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