2007M46-Property in Transit
ORDINANCE NO. 07 -M-46
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS TO TAX TANGmLE PERSONAL PROPERTY IN TRANSIT WHICH
WOULD OTHERWISE BE EXEMPT PURSUANT TO TEXAS TAX CODE,
SECTION 11.253, AS AMENDED; AND OTHER MATTERS IN
CONNECTION THEREWITH
WHEREAS, the 80th Texas Legislature in Regular Session enacted House Bill 621 to take
effect on January 1, 2008, which added Texas Tax Code Section 11.253 (the "Act") to exempt from
taxation certain tangible personal property held temporarily at a location in the State of Texas for
assembling, storing, manufacturing, processing, or fabricating purposes ("goods-in-transit") which
property has been subject to taxation in the past; and
WHEREAS, Section 11.253(k) of the Act allows the City Council of the City of Schertz,
Texas (the "City"), by official action, to provide for the taxation of such goods-in-transit exempt
under Section l1.253(c) of the Act and not exempt under other law; and
WHEREAS, Section 11.253(k) of the Act requires the City Council of the City to take
official action before January 1 of the first tax year in which the City proposes to tax goods-in-transit;
and
WHEREAS, Section 11.253(k) of the Act further requires the City Council of the City to
conduct a public hearing as required by Section 1-n( d), Article VIII of the Texas Constitution, before
acting to tax the exempt property; and
WHEREAS, the City Council of the City, having conducted a public hearing on October 2,
2007 as required by Section 1-n(d), Article VIII of the Texas Constitution, is of the opinion that it is
in the best interests of the City to tax such goods-in-transit;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SCHERTZ, TEXAS:
Section 1. Pursuant to Section 11.253(k) of the Act, the City shall taxgoods-in-transit, as
defined by Section l1.253(a)(2) of the Act.
Section 2. Goods-in-transit shall remain subject to taxation by the City until the City
Council of the City rescinds or repeals this Ordinance to tax goods-in-transit, or otherwise determines
that the exemption prescribed by Section l1.253(c) of the Act will apply to the City.
Section 3. The recitals contained in the preamble hereof are hereby found to be true, and
such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part ofthe
judgment and findings of the Council.
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Section 4. All ordinances, or parts thereof, which are in conflict or inconsistent with any
provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of
this Ordinance shall be and remain controlling as to the matters resolved herein.
Section 5. This Ordinance shall be construed and enforced in accordance with the laws of
the State of Texas and the United States of America.
Section 6. If any provision of this Ordinance or the application thereof to any person or
circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such
provision to other persons and circumstances shall nevertheless be valid, and the Council hereby
declares that this Ordinance would have been enacted without such invalid provision.
Section 7. It is officially found, determined, and declared that the meeting at which this
Ordinance is adopted was open to the public and public notice of the time, place, and subject matter
of the public business to be considered at such meeting, including this Ordinance, was given, all as
required by Chapter 551, as amended, Texas Government Code.
Section 8.
resolved.
This Ordinance shall take effect from and after its passage, and it is so
PASSED ON FIRST READING on the ~day of October, 2007.
uL
PASSED AND ADOPTED on second and final~~~'2007.
Mayor
ATTEST:
~~ W7A;UL~~
City ecr arY' I
(CITY SEAL)
50023841.1