Ord 66-2011 11/15/2011ORDINANCE NO. 66 -2011
Ordinance To Tax Tangible Personal Property In Transit, Which Would
Otherwise Be Exempt Pursuant To Texas Tax Code § 11.253
WHEREAS, the 80th Texas Legislature in Regular Session enacted House Bill
621 to take effect on January 1, 2008, which added Texas 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;
WHEREAS, on September 18, 2007, the City Council approved an ordinance to
continue to tax these goods; however, the Texas Legislature amended the Texas Tax
Code to limit the exemption only to goods that are stored in a public warehouse owned
by someone other than the owner of the goods;
WHEREAS, although this change limits the effect of the exemption to the local
tax base, it still allows industries to artificially lower their property tax obligations by
moving goods into a public warehouse to obtain the tax exemption;
WHEREAS, Texas Tax CODE § 11.253 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 the City Council finds that a public hearing was held as required
by Section 1 -n(d), Article VI 11, Texas Constitution; and
WHEREAS, the City Council has conducted a public hearing and complied with
all other legal pre- requisites to taxing goods -in- transit, as provided by Texas Tax Code
§ 11.253, and the City Council finds that it is in the best interests of the City to continue
taxing such goods -in- transit.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
Goods -in- transit, as defined by Texas Tax CODE § 11.253, shall remain subject
to taxation by the City of Wichita Falls.
PASSED AND APPROVED this the 15th day of November, 2011.
MAYOR
ATTEST:
City Clerk