OR 2014-1369 Ad Valorem Taxation for Freeport GoodsAN ORDINANCE OF THE CITY OF COPPELL, TEXAS
ORDINANCE NO. 2014-1369
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, EXPANDING
THE EXEMPTION FROM AD VALOREM TAXATION OF FREEPORT GOODS
THAT ARE AIRCRAFT PARTS; PROVIDING A REPEALING CLAUSE;
PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, on November 7, 1989, Article VIII, Section 1 of the Texas Constitution was
amended to add Section 1-j to provide for a local option exemption from ad valorem taxation of
certain tangible personal property; and
WHEREAS, in order to implement the Constitutional provision, the Texas Legislature
adopted Texas Tax Code Section 11.251, which provides for the exemption of certain taxable
property from ad valorem taxation, i.e., "Freeport Goods", defined as goods, wares, ores and
other tangible personal property that is acquired in or imported into the State of Texas, detained
on the property for assembling, storing, manufacturing, processing or fabricating purposes, to be
transported outside the State not later than 175 days of the date of import, the meaning as
assigned by Section 11.251 of the Tax Code and Article VIII, Section 1-j of the Texas
Constitution prior to the passage of Texas House Bill 621, 80th Texas Legislature (regular
session); and
WHEREAS, Article VIII, Section 1-j(b) provides that the City had to take action to tax
Freeport Goods otherwise such property was exempt from taxation; and
WHEREAS, the City Council did not take action to provide for the taxation of Freeport
Goods; and
WHEREAS, Proposition 3 was approved by the voters at the election held on November 5,
2013 which amended the Texas Constitution as set forth in House Joint Resolution 133 and
approved certain legislative changes set forth is House Bill 3121 to authorize the governing body
of a taxing unit to extend by official action the date by which Freeport Goods that are aircraft
parts must be transported outside the state from not later than 175 days to not later than 730 days
after being acquired or imported into this state before losing eligibility for an exemption; and
WHEREAS, the City Council now finds that it is in the best interests of the City to increase
the number of days that property tax-exempt aircraft parts may be located in the state for the
purpose of qualifying these parts for the Freeport Goods exemption;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF COPPELL, DALLAS COUNTY, TEXAS, THAT:
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SECTION 1. For purposes of Texas Tax Code Section 11.251 and Texas Constitution
Article VIII, Section 1 j the date by which Freeport goods that are aircraft parts must be
transported outside the state is extended from 175 days to the 730th day after the date the person
acquired or imported the property in this state.
SECTION 2. All provisions of ordinances of the City of Coppell, Texas, in conflict with
the provisions of this ordinance be, and the same are hereby, repealed, and all other provisions not
in conflict with the provisions of the ordinance shall remain in full force and effect.
SECTION 3. If any article, paragraph, or subdivision, clause or provision of this
ordinance shall be adjudged invalid or held to be unconstitutional, the same shall not affect the
validity of this ordinance as a whole or any part or provision thereof, other than the part so
decided to be unconstitutional.
SECTION 4. This Ordinance 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 of Coppell, Texas, on the day of
an 2014.
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SELBO HUNT,
YOR
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