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RE 2007-1023.5 RESOLUTION NO. 200 '7- /0 Z,3. S- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS, APPROVING THE TERMS AND CONDITIONS OF THE INTERJURISDICTIONAL INTERLOCAL AGREEMENT BY AND AMONG THE POLITICAL SUBDIVISION WITHIN THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS, wmCH IS ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT A, PROVIDING FOR AD VALOREM TAXATION OF "GOODS IN TRANSIT"; AND AUTHORIZING THE MAYOR TO SIGN. WHEREAS, the City of Coppell, Texas has the local option to elect to tax goods-in-transit under the TEXAS PROPERTY TAX CODE, Tangible Personal Property in Transit, Section 11-253; and WHEREAS, the City of Coppell City Council has determined that it is in the best interest of the citizens of Coppell, Texas, to tax said goods-in-transit; and WHEREAS, all of the taxing units within the North Central Texas Council of Governments ("NCTCOG") allows for the exemption of freeport goods; and WHEREAS, the political entities within the NCTCOG would like to acknowledge that an ad valorem tax exemption for "goods-in-transit" would not be in the best interest of the political subdivision and that the political subdivision intends to not grant such exemption; and WHEREAS, the City Council hereby approves the terms and conditions of the Interjurisdictional Interlocal Agreement, which is attached hereto and incorporated herein as Exhibit A, and authorizes the City Manager to execute said Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS, AS FOLLOWS: SECTION 1. That the terms and conditions of the Interjurisdictional Interlocal Agreement, which is attached hereto and incorporated herein as Exhibit A, are hereby approved for the purposes of ad valorem taxation exemption for "goods in transit" and not providing for an exemption of such good, and, the City Manager is hereby authorized to execute said Agreement for and on behalf of the City of Coppell, Texas. SECTION 2. That this Resolution shall take effect immediately from and after its passage as the law and charter in such cases provide. DULY PASSED by the City Council of the City ofCoppell, Texas, this the 23~.ttday of ((l('7J; Jj LAJ , 2007. ATTEST: ~~~J/ ~ LIB B CIT SECRETARY 2 OR INTERJURISDICTIONAL INTERLOCAL AGREEMENT THE STATE OF TEXAS s s COUNTY OF DALLAS s KNOW ALL BY THESE PRESENTS THIS INTERLOCAL AGREEMENT (hereafter "Agreement") is made and entered into by, between and among the signatories which are comprised of the North Central Texas Council of Governments (hereinafter referred to NCTCOG), and any political subdivision or taxing unit located wholly within the sixteen counties covered by the North Central Texas Council of Governments. WHEREAS, the Texas State Legislature has authorized the formulation of interlocal cooperation agreements between and among governmental entities pursuant to the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, as amended. WHEREAS, the governing bodies of each entity believes that this agreement is necessary for the benefit of the public and that each party has the legal authority to provide the governmental function which is the subject of the Interlocal Agreement; and WHEREAS, The Texas Constitution was amended in 1989 by the addition of Article 8, Section 1-j, to exempt from ad valorem taxation certain tangible personal property to include warehouse inventory that is detained in the State for assembling, storing, manufacturing, processing or fabricating purposes by the person who acquired or imported the property and is transported outside of the State not later than 175 days after date the person acquired or imported into the State; and WHEREAS, the Texas Tax Code was amended in 1989 pursuant to the Constitutional amendment by adding Section 11.251, to allow for the exemption of "freeport" goods, which are defined as property delineated in Texas Constitution, Article 8, Section 1-j; and EXHIBIT "A" WHEREAS, the Texas Tax Code, Section 11.251 was amended in 1991, 1993 and 2001 to its current wording; and WHEREAS, The Texas Constitution was amended in 2001 to add Article VIII, Section 1-n to allow the legislature to add an ad valorem tax exemption for tangible personal property held at certain locations only temporarily for assembling, manufacturing, processing, or other commercial purposes; and WHEREAS, the 80th legislature in 2007,pursuant to The Texas Constitution, Article VIII, Section 1-n, passed House Bill 621 creating Texas Tax Code Section 11.253 to allow certain tangible personal property, defined as "goods in transit" to be exempt from ad valorem taxation; and WHEREAS, the major differences in the exemption of Texas Tax Code, Sections 11.251 and 11.253 is that Section 11.253 allows the exemption for property that will be forwarded to another location in this state or outside this state, and the property is detained at a location in this state that is not owned or under the control of the property owner for assembling, storing, manufacturing; processing or fabricating purposes by the person who acquired or imported the property; and WHEREAS, Texas Tax Code, Section 11.253 allows the governing body of a taxing unit to elect to tax "goods in transit" which are not exempt by other law if it takes action before January 1 of the tax year for which the taxing unit intends to tax such goods; and WHEREAS, a property owner who receives the exemption from Texas Tax Code, Section 11.253 is not eligible to receive the exemption of Texas Tax Code, Section 11.251 for the same property; and WHEREAS, the exemption of "goods in transit" from taxation would result in the loss of needed revenue to the taxing units and would be an inequitable shift of the tax burden to the homeowners and local businesses; and EXHIBIT "A" (2 ) WHEREAS, WHEREAS, WHEREAS, WHEREAS, those taxing units that cannot afford to grant such an exemption will be negatively impacted by the exemption of "goods in transit"; and all the taxing units within the NCTCOG allows for the exemption of "freeport" goods; and the NCTCOG supports its member local governments in their effort to preserve an equitable tax structure which is capable of sustaining services and service levels defined by their citizens; and the political entities within the NCTCOG would like to acknowledge that an ad valorem tax exemption for "goods in transit" would not be in the best interest of the political subdivision and that the political subdivisions intends to not grant such exemption; NOW THEREFORE, In consideration of the premises and the agreements, covenants and promises herein set forth, it is agreed as follows: 1 . RECITALS. correct. The recitals set forth above are true and 2. IMPLEMENTATION. Signatories by its signature indicates the intent of the signatories to impose ad valorem taxes upon "goods in transit" as defined in Texas Tax Code, Section 11.253. The parties further agree that it is their intent at the time of signature, to hold a public hearing and fulfill the requirements of Texas Tax Code Section 11.253 to deny such exemption, before January 1, 2008. 3. NOTICE. The signatories agree that if it decides to not to act and to allow the exemption of Texas Tax Code Section 11.253 to come into effect that it will notify the other signatories by November 1, 2007. The notice will be effected by sending written or faxed notice to NCTCOG at the following address or fax number. Mike Eastland P.O. Box 5888 Arlington, TX 76005-5888 Telephone #:817-695-9100 Facsimile #:817-704-2543 EXHIBIT "A" (3) NCTCOG will then notify all other signatories by the quickest reasonable means possible through the contact person designated in writing by each of the signatories. 4. NO VERBAL AGREEMENT. This Agreement contains all the terms, commitments and covenants of the PARTIES pursuant to this Contract. Any verbal or written commitment not contained in this Agreement or expressly referred to in this Agreement and incorporated by reference shall have no force or effect. 5. AGREEMENT INTERPRETATION AND VENUE. The signatories covenant and agree that any litigation relating to this AGREEMENT, the terms and conditions of the AGREEMENT will be interpreted according to the laws of the State of Texas and venue shall be proper exclusively in Tarrant County, Texas. 6. IMMUNITY. It is expressly understood and agreed that, in the execution of this AGREEMENT, no party waives, nor shall be deemed hereby to waive, any immunity or defense that would otherwise be available to it against claims arising in the exercise of governmental powers and functions. 7. SEVERABILITY. If any of the terms, sections, subsections, sentences, clauses, phrases, provisions, covenants or conditions of this AGREEMENT are for any reason held to be invalid, void or unenforceable, the remainder of the terms, sections, subsections, sentences, clauses, phrases, provisions, covenants, or conditions in this AGREEMENT shall remain in full force and effect and shall in no way be affected, impaired or invalidated. EXHIBIT "A" (4 ) EXECUTED by the Signatories hereto, each respective entity acting by and through its duly authorized official as required by law, on multiple counterparts each of which shall be deemed to be an original, on the date specified on the multiple counterpart executed by each entity. LL, TEXAS ATTESTED: APPROVED AS TO FORM: EXHIBIT "A" (5)