15-MOTION TO APPROVE ORDINANCE FOR CONTINUED TAXATION OF CERTAIN GOODS-IN-TRANSIT DURING 2012CITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date:
Originating Department:
Presented By:
Agenda Item No.:
11-21-11
Council Date:
City Manager
Gene Anderson
15.
12-12-11
RECOMMENDED MOTION:
Motion to approve an ordinance to provide for the continued taxation of certain goods-in-transit during 2012.
POLICY ISSUE(S):
Fiscal management.
Last June the state legislature modified the existing law on certain types of goods-in-transit. This
modification requires the City to take official action before December 31 St to provide for the continued
taxation of certain goods-in-transit in 2012. This exemption would be in addition to the Freeport
exemption the City already grants and is sometimes referred to as the "super Freeport" exemption. It
allows goods to be exempted from taxation if they are stored at warehouses not owned by the owner of
the goods.
In 2007, the City Council passed an ordinance (2007-047) to continue taxing these goods. It is
recommended that the goods continue to be taxed. Failure to do so would cost the City approximately
$104,000 per year.
BOARD/ COMMISSION RECOMMENDATION:
None
EXHIBITS:
Ordinance.
ACTION:
BUDGET INFO:
❑ Financial Report ❑ Minute Order
Expense
$NA
❑ Department Report ❑ Resolution
Budgeted Amt.
$NA
❑ Presentation ~ Ordinance
y'r'D Actual
$NA
❑ Public Hearing ❑ Other
Acct. Name
NA
Acct. Number
NA
FISCAL NOTES:
None
REVIEWED AND APPROVED BY:
E] Administration E City Clerk ❑ Community Development ❑ EMS/IT ❑ Finance ❑ Fire
❑ Municipal Court N Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities
City of Paris , Revised 2/04/08
J~
Draft
ORDINANCE N0.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
ALLOWING THE CITY OF PARIS TO TAX TANGIBLE PERSONAL
PROPERTY TEMPORARILY WAREHOUSED IN THE CITY AWAITING
SHIPMENT TO OTHER LOCATIONS WITHIN OR WITHOUT THE STATE OF
TEXAS, ("GOODS-IN-TRANSIT"); MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; PROVIDING A SEVERABILITY
CLAUSE, AND PROVIDING AN EFFECTIVE DATE.
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; and,
WHEREAS, Texas 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 Paris, having conducted a public hearing as
required by Texas Tax Code §11.253(j), is of the opinion that it is in the best interests of the
City of Paris to continue to tax such goods-in-transit; and,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this ordinance are hereby
in all things approved.
Section 2. That the City Council did, on December 12, 2011 hold and conduct a
public hearing on the subject of taxation of goods-in-transit.
Section 3. That the goods-in-transit, as defined in Texas Tax Code §11.253(a)(2),
as amended by House Bill 621, enacted by the 80th Texas Legislature in Regular Session,
further amended by Senate Bill 1 shall remain subject to taxation by the City of Paris.
Section 4. That goods-in-transit shall continue to be subject to ad valorem taxes
up to and until such time as a future governing body of this municipality may choose
otherwise.
Section S. That it is the intention of the City Council of the City of Paris that this
ordinance, and every provision hereof, shall be considered severable, and the invalidity or
partial invalidity of any section, clause, or provisions of this ordinance shall not affect the
validity of any other portion of this ordinance.
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Section 6. That the City Council voted by a supermajority vote of the entire Council to
suspend the rule requiring two readings before adoption of ordinances ayes and _ nays.
Section 7. That this ordinance shall become effective from and after its passage of the
first reading and publication as required by law.
PASSED AND ADOPTED on by the City Council of the City of Paris, in regular session on
this the 12th day of December, 2011.
A.J. Hashmi, M.D., Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
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