Item 4UCITY OF
SOUTHLAKE
MEMORANDUM
May 15, 2014
To: Shana Yelverton, City Manager
From: Sharen Jackson, Chief Financial Officer
Subject: Resolution No. 14-024, extending the number of days that aircraft
parts are exempt from ad valorem taxation under Section 11.251 of
the Texas Tax Code
Action
Requested: Consider Resolution No. 14-024
Background
Information: During the 83rd Texas Legislative Session, House Bill 3121 was
approved to permit taxing entities to extend the number of days that
aircraft parts are exempt from ad valorem taxation. This legislation
implemented a constitutional amendment (Proposition 3-HJR 133).
On October 15, 2013, City Council approved Resolution No. 13-
040 in support of the passage of Proposition 3-HJR 133.
Pursuant to Section 3.003 of the Texas Election Code, Governor
Rick Perry ordered a special election to be held throughout the
State of Texas on November 5, 2013 to consider the proposed
constitutional amendments. Proposition 3-HJR 133 was approved
by the eligible voters in the State of Texas to permit taxing entities
to extend the number of days that aircraft parts are exempt from ad
valorem taxation.
Currently, merchandise, wares, and goods (including aircraft parts)
may remain in the state temporarily for up to 175 days before being
subject to ad valorem taxation. Approval of Resolution 14-024
would extend the exemption up to 730 days after the date that a
person acquired or imported aircraft parts in the state.
Financial
Considerations: Currently, the City of Southlake could see a reduction, minimum if
any, in tax revenue.
Strategic Link: C4 Attract & keep top -tier businesses to drive a dynamic &
sustainable economic environment
Citizen Input/
Board Review: Non -applicable
Legal Review: City Attorney reviewed Resolution 14-024
Alternatives: Deny and continue with 175 days exemption for aircraft parts
Supporting
Documents: Resolution No. 14-024
Staff
Recommendation: Consider Resolution No. 14-024
RESOLUTION NO. 14-024
A RESOLUTION OF THE CITY OF SOUTHLAKE EXTENDING THE
NUMBER OF DAYS THAT AIRCRAFT PARTS ARE EXEMPT FROM AD
VALOREM TAXATION UNDER SECTION 11.251 OF THE TEXAS TAX
CODE; AND PROVIDING A REPEALER CLAUSE; PROVIDING A
SEVERABILITY CLAUSE.
WHEREAS, the Texas Legislature in the 83rd Legislative Session approved
House Bill 3121, which was subsequently approved by the eligible voters of the State of
Texas to permit taxing entities to extend the number of days that aircraft parts are
exempt from ad valorem taxation; and,
WHEREAS, Section 11.251(I) of the Texas Tax Code provided that
municipalities, may in the manner required for official action by the governing body, may
extend the tax exemption up to 730 days after the date that a person acquired or
imported aircraft parts in the state;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS
SECTION 1. The findings set forth above are incorporated into the body
of this Resolution as if fully set forth herein.
SECTION 2. The City Council of Southlake, Texas hereby extends the
number of days that aircraft parts are exempt from ad valorem taxation up to 730 days
as provided by Texas Tax Code §11.251, and are hereby declared to be exempt for tax
year 2014 and for every year thereafter, all as provided for and in accordance with
Texas Tax Code §11.251.
SECTION 3. It is hereby declared to be the intention of the City Council
that the phrases, clauses, sentences, paragraphs and sections of this resolution are
severable, and if any phrase, clause, sentence, paragraph or section of this resolution
shall be declared unconstitutional by the valid judgment or decree of any court of
competent jurisdiction, such unconstitutionality shall not affect any of the remaining
phrases, clauses, sentences, paragraphs and sections of this resolution, since the same
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would have been enacted by the City Council without the incorporation of this resolution
of any such unconstitutional phrase, clause, sentence, paragraph or section.
SECTION 4. This resolution is hereby effective upon passage and
approval by the City Council.
PASSED AND APPROVED ON THE 20TH DAY OF MAY 2014.
John Terrell
Mayor
ATTEST:
Alicia Richardson, TRMC
City Secretary
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