Bill Summary – FastDemocracy

      
            S.B. No. 2289
         
               AN ACT
            
            relating to the exemption from ad valorem taxation of equipment or 
         
            inventory held by a manufacturer of medical or biomedical products 
         
            to protect the Texas healthcare network and strengthen our medical 
         
            supply chain.
         
                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         
                   SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by 
         
            adding Section 11.36 to read as follows:
         
                   Sec. 11.36.  MEDICAL OR BIOMEDICAL PROPERTY.  (a)  In this 
         
            section:
         
                         (1)  "Medical or biomedical property" means tangible 
         
            personal property that is:
         
                               (A)  stored, used, or consumed in the 
         
            manufacturing or processing of medical or biomedical products by a 
         
            medical or biomedical manufacturer; or
         
                               (B)  intended for use in the diagnosis, cure, 
         
            mitigation, treatment, or prevention of a condition or disease or 
         
            in medical or biomedical research, including the invention, 
         
            development, and dissemination of materials, tools, technologies, 
         
            processes, and similar means for translating and applying medical 
         
            and scientific research for practical applications to advance 
         
            public health, including:
         
                                     (i)  devices;
         
                                     (ii)  therapeutics;
         
                                     (iii)  pharmaceuticals;
         
                                     (iv)  personal protective equipment;
         
                                     (v)  tools, apparatuses, instruments, 
         
            implants, or other similar or related component parts or 
         
            accessories;
         
                                     (vi)  property exempted under Section 
         
            151.318 from the taxes imposed by Chapter 151; and
         
                                     (vii)  manufacturing inventories, including 
         
            finished goods.
         
                         (2)  "Medical or biomedical manufacturing facility" 
         
            means a facility at which a person conducts manufacturing or 
         
            processing of medical or biomedical products for the purpose of 
         
            development and commercialization of products to advance public 
         
            health.
         
                   (b)  A person is entitled to an exemption from taxation of 
         
            medical or biomedical property the person owns or leases that is 
         
            located in a medical or biomedical manufacturing facility that the 
         
            person owns or leases.
         
                   (c)  Notwithstanding Section 11.14(c), the governing body of 
         
            a taxing unit may not provide for taxation of medical or biomedical 
         
            property exempted under this section.
         
                   SECTION 2.  Section 11.42(d), Tax Code, is amended to read as 
         
            follows:
         
                   (d)  A person who acquires property after January 1 of a tax 
         
            year may receive an exemption authorized by Section 11.17, 11.18, 
         
            11.19, 11.20, 11.21, 11.23, 11.231, [or] 11.30, or 11.36 for the 
         
            applicable portion of that tax year immediately on qualification 
         
            for the exemption.
         
                   SECTION 3.  Section 11.43(c), Tax Code, is amended to read as 
         
            follows:
         
                   (c)  An exemption provided by Section 11.13, 11.131, 11.132, 
         
            11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, 
         
            11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231, 
         
            11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, [or] 11.35, or 
         
            11.36, once allowed, need not be claimed in subsequent years, and 
         
            except as otherwise provided by Subsection (e), the exemption 
         
            applies to the property until it changes ownership or the person's 
         
            qualification for the exemption changes.  However, except as 
         
            provided by Subsection (r), the chief appraiser may require a 
         
            person allowed one of the exemptions in a prior year to file a new 
         
            application to confirm the person's current qualification for the 
         
            exemption by delivering a written notice that a new application is 
         
            required, accompanied by an appropriate application form, to the 
         
            person previously allowed the exemption.  If the person previously 
         
            allowed the exemption is 65 years of age or older, the chief 
         
            appraiser may not cancel the exemption due to the person's failure 
         
            to file the new application unless the chief appraiser complies 
         
            with the requirements of Subsection (q), if applicable.
         
                   SECTION 4.  This Act applies only 
Statutes affected: 
Introduced: Tax Code 11.42, Tax Code 11.43 (Tax Code 11)
Senate Committee Report: Tax Code 11.42, Tax Code 11.43 (Tax Code 11)
Engrossed: Tax Code 11.42, Tax Code 11.43 (Tax Code 11)
House Committee Report: Tax Code 11.42, Tax Code 11.43 (Tax Code 11)
Enrolled: Tax Code 11.42, Tax Code 11.43 (Tax Code 11)




	AN ACT
	relating to the exemption from ad valorem taxation of equipment or
	inventory held by a manufacturer of medical or biomedical products
	to protect the Texas healthcare network and strengthen our medical
	supply chain.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
	adding Section 11.36 to read as follows:
	Sec. 11.36. MEDICAL OR BIOMEDICAL PROPERTY. (a) In this
	section:
	(1) "Medical or biomedical property" means tangible
	personal property that is:
	(A) stored, used, or consumed in the
	manufacturing or processing of medical or biomedical products by a
	medical or biomedical manufacturer; or
	(B) intended for use in the diagnosis, cure,
	mitigation, treatment, or prevention of a condition or disease or
	in medical or biomedical research, including the invention,
	development, and dissemination of materials, tools, technologies,
	processes, and similar means for translating and applying medical
	and scientific research for practical applications to advance
	public health, including:
	(i) devices;
	(ii) therapeutics;
	(iii) pharmaceuticals;
	(iv) personal protective equipment;
	(v) tools, apparatuses, instruments,
	implants, or other similar or related component parts or
	accessories;
	(vi) property exempted under Section
	151.318 from the taxes imposed by Chapter 151; and
	(vii) manufacturing inventories, including
	finished goods.
	(2) "Medical or biomedical manufacturing facility"
	means a facility at which a person conducts manufacturing or
	processing of medical or biomedical products for the purpose of
	development and commercialization of products to advance public
	health.
	(b) A person is entitled to an exemption from taxation of
	medical or biomedical property the person owns or leases that is
	located in a medical or biomedical manufacturing facility that the
	person owns or leases.
	(c) Notwithstanding Section 11.14(c), the governing body of
	a taxing unit may not provide for taxation of medical or biomedical
	property exempted under this section.
	SECTION 2. Section 11.42(d), Tax Code, is amended to read as
	follows:
	(d) A person who acquires property after January 1 of a tax
	year may receive an exemption authorized by Section 11.17, 11.18,
	11.19, 11.20, 11.21, 11.23, 11.231, [or] 11.30, or 11.36 for the
	applicable portion of that tax year immediately on qualification
	for the exemption.
	SECTION 3. Section 11.43(c), Tax Code, is amended to read as
	follows:
	(c) An exemption provided by Section 11.13, 11.131, 11.132,
	11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
	11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
	11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, [or] 11.35, or
	11.36, once allowed, need not be claimed in subsequent years, and
	except as otherwise provided by Subsection (e), the exemption
	applies to the property until it changes ownership or the person's
	qualification for the exemption changes. However, except as
	provided by Subsection (r), the chief appraiser may require a
	person allowed one of the exemptions in a prior year to file a new
	application to confirm the person's current qualification for the
	exemption by delivering a written notice that a new application is
	required, accompanied by an appropriate application form, to the
	person previously allowed the exemption. If the person previously
	allowed the exemption is 65 years of age or older, the chief
	appraiser may not cancel the exemption due to the person's failure
	to file the new application unless the chief appraiser complies
	with the requirements of Subsection (q), if applicable.
	SECTION 4. This Act applies only Statutes affected: Introduced: Tax Code 11.42, Tax Code 11.43 (Tax Code 11) Senate Committee Report: Tax Code 11.42, Tax Code 11.43 (Tax Code 11) Engrossed: Tax Code 11.42, Tax Code 11.43 (Tax Code 11) House Committee Report: Tax Code 11.42, Tax Code 11.43 (Tax Code 11) Enrolled: Tax Code 11.42, Tax Code 11.43 (Tax Code 11)