PASADENA INDEPENDENT SCHOOL DISTRICT Meeting of the ...

SUBJECT: Public Hearing on Whether To Tax Tangible Personal
Property in Transit Which Would Otherwise Be Exempt
Pursuant to Texas Tax Code, Section 11.253
BACKGROUND: HB621 was recently passed in the 2007 Legislative
Session. The bill exempts goods, principally inventory,
stored in a location that is not owned by the owner of
the goods and that are transferred from the location to
another location within 175 days. The goods may be in
the location for the purposes of assembling, storing,
manufacturing, processing or fabricating.
This bill is much like the Freeport Exemption on Goods
that PISD Board voted to tax years ago. However,
once realized, the new bill could have a much larger
impact on our tax base as owners of such goods could
transfer ownership of either the goods or the facilities in
which the goods are stored to legal entities with
different ownership. These types of paper changes
could make the goods exempt as long as they remain
in PISD’s district.
Before acting to tax these goods, the District must hold
a public hearing on the question of whether to tax them
or whether to let them become exempt. The legislature
has prescribed no special procedures for this hearing.
The hearing must be a separate item listed on the
agenda and follow the appropriate notice requirements
with the Open Meetings Act. No additional public
notice is required.
FINANCIAL IMPLICATIONS: Failure to pass this resolution will result in a loss of
taxable value to Pasadena Independent School District.
RECOMMENDATION: No action required. Public Hearing for public
comments only.
CONTACT PERSON: Zelda Cryar
John M. Piscacek
BOARD MEETING DATE: September 25, 2007