CHAPTER 21. TAXABLE SITUS
TAX CODE
TITLE 1. PROPERTY TAX CODE
SUBTITLE D. APPRAISAL AND ASSESSMENT
CHAPTER 21. TAXABLE SITUS
Sec. 21.01. REAL PROPERTY. Real property is taxable by a taxing
unit if located in the unit on January 1, except as provided by
Chapter 41, Education Code.
Acts 1979, 66th Leg., p. 2247, ch. 841, Sec. 1, eff. Jan. 1,
1979. Amended by Acts 1993, 73rd Leg., ch. 347, Sec. 4.10, eff.
May 31, 1993; Acts 1997, 75th Leg., ch. 165, Sec. 6.74, eff.
Sept. 1, 1997.
Sec. 21.02. TANGIBLE PERSONAL PROPERTY GENERALLY. (a) Except
as provided by Subsections (b) and (e) and by Sections 21.021,
21.04, and 21.05, tangible personal property is taxable by a
taxing unit if:
(1) it is located in the unit on January 1 for more than a
temporary period;
(2) it normally is located in the unit, even though it is
outside the unit on January 1, if it is outside the unit only
temporarily;
(3) it normally is returned to the unit between uses elsewhere
and is not located in any one place for more than a temporary
period; or
(4) the owner resides (for property not used for business
purposes) or maintains the owner's principal place of business in
this state (for property used for business purposes) in the unit
and the property is taxable in this state but does not have a
taxable situs pursuant to Subdivisions (1) through (3) of this
subsection.
(b) Tangible personal property having taxable situs at the same
location as real property detached from a school district and
annexed by another school district under Chapter 41, Education
Code, is taxable in the tax year in which the detachment and
annexation occurs by the same school district by which the real
property is taxable in that tax year under Chapter 41, Education
Code. For purposes of this subsection and Chapter 41, Education
Code, tangible personal property has taxable situs at the same
location as real property detached and annexed under Chapter 41,
Education Code, if the detachment and annexation of the real
property, had it occurred before January 1 of the tax year, would
have changed the taxable situs of the tangible personal property
determined as provided by Subsection (a) from the school district
from which the real property was detached to the school district
to which the real property was annexed.
(c) Tangible personal property has taxable situs in a school
district that is the result of a consolidation under Chapter 41,
Education Code, in the year in which the consolidation occurs if
the property would have had taxable situs in the consolidated
district in that year had the consolidation occurred before
January 1 of that year.
(d) A motor vehicle does not have taxable situs in a taxing unit
under Subsection (a)(1) if, on January 1, the vehicle:
(1) has been located for less than 60 days at a place of
business of a person who holds a wholesale motor vehicle auction
general distinguishing number issued by the Texas Department of
Motor Vehicles under Chapter 503, Transportation Code, for that
place of business; and
(2) is offered for resale.
(e) In this subsection, "portable drilling rig" includes
equipment associated with the drilling rig. A portable drilling
rig designed for land-based oil or gas drilling or exploration
operations is taxable by each taxing unit in which the rig is
located on January 1 if the rig was located in the appraisal
district that appraises property for the unit for the preceding
365 consecutive days. If the drilling rig was not located in the
appraisal district where it is located on January 1 for the
preceding 365 days, it is taxable by each taxing unit in which
the owner's principal place of business in this state is located
on January 1, unless the owner renders the rig under Chapter 22
to the appraisal district in which the rig is located on January
1, in which event the rig is taxable by each taxing unit in which
the rig is located on January 1. If an owner elects to render
any portable drilling rig to the appraisal district in which the
rig is located on January 1 when the rig otherwise would be
taxable at the owner's principal place of business in this state,
all the owner's portable drilling rigs are taxable by the taxing
units in which each rig is located on January 1. Notwithstanding
any other provision of this subsection, if the owner of a
portable drilling rig does not have a place of business in this
state, the rig is taxable by each taxing unit in which the rig is
located on January 1.
Acts 1979, 66th Leg., p. 2247, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 1908, ch. 353, Sec. 2,
eff. Jan. 1, 1984; Acts 1989, 71st Leg., ch. 534, Sec. 5, eff.
Aug. 28, 1989; Acts 1993, 73rd Leg., ch. 347, Sec. 4.11, eff. May
31, 1993; Acts 1997, 75th Leg., ch. 165, Sec. 6.75, eff. Sept. 1,
1997.
Amended by:
Acts 2005, 79th Leg., Ch.
412, Sec. 8, eff. September 1, 2005.
Acts 2006, 79th Leg., 3rd C.S., Ch.
1, Sec. 1(a), eff. January 1, 2007.
Acts 2007, 80th Leg., R.S., Ch.
911, Sec. 1(a), eff. January 1, 2008.
Acts 2009, 81st Leg., R.S., Ch.
933, Sec. 3K.01, eff. September 1, 2009.
Sec. 21.021. VESSELS AND OTHER WATERCRAFT. (a) A vessel or
other watercraft used as an instrumentality of commerce (as
defined in Section 21.031(b) of this code) is taxable pursuant to
Section 21.02 of this code.
(b) A special-purpose vessel or other watercraft not used as an
instrumentality of commerce (as defined in Section 21.031(b) of
this code) is deemed to be located on January 1 for more than a
temporary period for purposes of Section 21.02 of this code in
the taxing unit in which it was physically located during the
year preceding the tax year. If the vessel or watercraft was
physically located in more than one taxing unit during the year
preceding the tax year, it is deemed to be located for more than
a temporary period for purposes of Section 21.02 of this code in
the taxing unit in which it was physically located for the
longest period during the year preceding the tax year or for 30
days, whichever is longer. If a vessel or other watercraft is not
deemed to be located in any taxing unit on January 1 for more
than a temporary period pursuant to this subsection, the property
is taxable as provided by Subdivisions (2) through (4) of Section
21.02 of this code.
(c) This section applies solely to a determination of taxable
situs and does not apply to a determination of jurisdiction to
tax under Section 11.01 of this code.
Added by Acts 1983, 68th Leg., p. 1908, ch. 353, Sec. 3, eff.
Jan. 1, 1984.
Sec. 21.03. INTERSTATE ALLOCATION. (a) If personal property
that is taxable by a taxing unit is used continually outside this
state, whether regularly or irregularly, the appraisal office
shall allocate to this state the portion of the total market
value of the property that fairly reflects its use in this state.
(b) The comptroller shall adopt rules:
(1) identifying the kinds of property subject to this section;
and
(2) establishing formulas for calculating the proportion of
total market value to be allocated to this state.
Acts 1979, 66th Leg., p. 2247, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1991, 72nd Leg., 2nd C.S., ch. 6, Sec. 14,
eff. Sept. 1, 1991.
Sec. 21.031. ALLOCATION OF TAXABLE VALUE OF VESSELS AND OTHER
WATERCRAFT USED OUTSIDE THIS STATE. (a) If a vessel or other
watercraft that is taxable by a taxing unit is used continually
outside this state, whether regularly or irregularly, the
appraisal office shall allocate to this state the portion of the
total market value of the vessel or watercraft that fairly
reflects its use in this state. The appraisal office shall not
allocate to this state the portion of the total market value of
the vessel or watercraft that fairly reflects its use in another
state or country, in international waters, or beyond the Gulfward
boundary of this state.
(b) The appraisal office shall make the allocation as follows:
(1) The allocable portion of the total fair market value of a
vessel or other watercraft used as an instrumentality of commerce
that is taxable in this state is determined by multiplying the
total fair market value by a fraction, the numerator of which is
the number of miles the vessel or watercraft was operated in this
state during the year preceding the tax year and the denominator
of which is the total number of miles the vessel or watercraft
was operated during the year preceding the tax year. For purposes
of this section, "vessel or other watercraft used as an
instrumentality of commerce" means a vessel or other watercraft
that is primarily employed in the transportation of cargo,
passengers, or equipment, and that is economically employed when
it is moving from point to point as a means of transportation.
(2) The allocable portion of the total fair market value of a
special-purpose vessel or other watercraft not used as an
instrumentality of commerce is determined by multiplying the
total fair market value by a fraction, the numerator of which is
the number of days the vessel or watercraft was physically
located in this state during the year preceding the tax year and
the denominator of which is 365. For purposes of this section,
"special-purpose vessel or other watercraft not used as an
instrumentality of commerce" means a vessel or other watercraft
that:
(A) is designed to be transient and customarily is moved from
location to location on a more or less regular basis;
(B) is economically employed when operated in a localized area
or in a fixed place; and
(C) is not primarily employed to transport cargo, passengers,
and equipment but rather to perform some specialized function or
operation not requiring constant movement from point to point.
(c) A vessel or other watercraft used as an instrumentality of
commerce or a special-purpose vessel or other watercraft not used
as an instrumentality of commerce that is used outside this state
and is in this state solely to be converted, repaired, stored, or
inspected is presumed to be in interstate, international, or
foreign commerce and not located in this state for longer than a
temporary period for purposes of Sections 11.01 and 21.02.
(d) If the allocation provisions of this section do not fairly
reflect the use of a vessel or other watercraft in this state, an
alternate allocation formula shall be utilized if the property
owner or appraisal office demonstrates that:
(1) the allocation formula specified in this section is
arbitrary and unreasonable as applied to the vessel or
watercraft; and
(2) the formula or indication of use proposed by the property
owner or appraisal office more fairly reflects the vessel or
watercraft's use in this state than that specified in this
section.
(e) To receive an allocation of value under this section, a
property owner must apply for the allocation on a form that
substantially complies with the form prescribed by the
comptroller. The application must be filed with the chief
appraiser for the district in which the property to which the
application applies is taxable before the approval of the
appraisal records by the appraisal review board as provided by
Section 41.12 of this code.
(f) The comptroller shall promulgate forms and may adopt rules
consistent with the provisions of this section.
(g) A vessel or other watercraft to be used as an
instrumentality of commerce or a special-purpose vessel or other
watercraft not to be used as an instrumentality of commerce that
is under construction in this state is presumed to be in
interstate, international, or foreign commerce and not located in
this state for longer than a temporary period for purposes of
Sections 11.01 and 21.02.
(h) Tangible personal property in this state is presumed to be
in interstate, international, or foreign commerce and not located
in this state for longer than a temporary period for purposes of
Sections 11.01 and 21.02 if the owner demonstrates to the chief
appraiser that the owner intends to incorporate the property in
or attach the property to an identified vessel or other
watercraft described by Subsection (c) or (g).
Added by Acts 1983, 68th Leg., p. 1908, ch. 353, Sec. 3, eff.
Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., 2nd C.S., ch. 6,
Sec. 15, eff. Sept. 1, 1991; Acts 2001, 77th Leg., ch. 117, Sec.
1, eff. Jan. 1, 2002.
Sec. 21.04. RAILROAD ROLLING STOCK. (a) A portion of the total
market value of railroad rolling stock that is appraised as
provided by Subchapter B of Chapter 24 of this code is taxable by
each county in which the railroad operates.
(b) The portion of the total market value that is taxable by a
county is determined by the provisions of Subchapter B of Chapter
24 of this code.
Acts 1979, 66th Leg., p. 2247, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 4823, ch. 851, Sec. 9,
eff. Aug. 29, 1983.
Sec. 21.05. COMMERCIAL AIRCRAFT. (a) If a commercial aircraft
that is taxable by a taxing unit is used both in this state and
outside this state, the appraisal office shall allocate to this
state the portion of the fair market value of the aircraft that
fairly reflects its use in this state. The appraisal office shall
not allocate to this state the portion of the total market value
of the aircraft that fairly reflects its use beyond the
boundaries of this state.
(b) The allocable portion of the total fair market value of a
commercial aircraft that is taxable in this state is presumed to
be the fair market value of the aircraft multiplied by a
fraction, the numerator of which is the product of 1.5 and the
number of revenue departures by the aircraft from Texas during
the year preceding the tax year, and the denominator of which is
the greater of (1) 8,760, or (2) the numerator.
(c) During the time in which any commercial aircraft is removed
from air transportation service for repair, storage, or
inspection, such aircraft is presumed to be in interstate,
international, or foreign commerce and not located in this state
for longer than a temporary period for purposes of Section 11.01
of this code.
(d) A certificated air carrier shall designate the tax situs of
commercial aircraft that land in Texas as either the carrier's
principal office in Texas or that Texas airport from which the
carrier has the highest number of Texas departures.
(e) For purposes of this subchapter, a commercial aircraft shall
mean an instrumentality of air commerce that is:
(1) primarily engaged in the transportation of cargo,
passengers, or equipment for others for consideration;
(2) economically employed when it is moving from point to point
as a means of transportation; and
(3) operated by a certificated air carrier. A certificated air
carrier is one engaged in interstate or intrastate commerce under
authority of the U.S. Department of Transportation.
Added by Acts 1989, 71st Leg., ch. 534, Sec. 6, eff. Aug. 28,
1989.
Sec. 21.055. BUSINESS AIRCRAFT. (a) If an aircraft is used for
a business purpose of the owner, is taxable by a taxing unit, and
is used continually outside this state, whether regularly or
irregularly, the appraisal office shall allocate to this state
the portion of the fair market value of the aircraft that fairly
reflects its use in this state. The appraisal office shall not
allocate to this state the portion of the total market value of
the aircraft that fairly reflects its use beyond the boundaries
of this state.
(b) The allocable portion of the total fair market value of an
aircraft described by Subsection (a) is presumed to be the fair
market value of the aircraft multiplied by a fraction, the
numerator of which is the number of departures by the aircraft
from a location in this state during the year preceding the tax
year and the denominator of which is the total number of
departures by the aircraft from all locations during the year
preceding the tax year.
(c) This section does not apply to a commercial aircraft as
defined by Section 21.05.
Added by Acts 1999, 76th Leg., ch. 970, Sec. 1, eff. June 18,
1999; Acts 1999, 76th Leg., ch. 1481, Sec. 7, eff. Sept. 1, 1999.
Sec. 21.06. INTANGIBLE PROPERTY GENERALLY. (a) Except as
provided by Sections 21.07 through 21.09 of this code, intangible
property is taxable by a taxing unit if the owner of the property
resides in the unit on January 1, unless the property normally is
used in this state for business purposes outside the unit. In
that event, the intangible property is taxable by each taxing
unit in which the property normally is used for business
purposes.
(b) Depositing intangible property with an agency of the state
pursuant to a law requiring or authorizing the deposit is not
using it for a business purpose at the depository.
Acts 1979, 66th Leg., p. 2248, ch. 841, Sec. 1, eff. Jan. 1,
1982.
Sec. 21.07. INTANGIBLES OF CERTAIN TRANSPORTATION BUSINESSES.
(a) A portion of the total intangible value of a transportation
business whose intangibles are appraised as provided by
Subchapter A of Chapter 24 of this code is taxable by each county
in which the business operates.
(b) The portion of the total value that is taxable as provided
by Subsection (a) of this section is determined by the provisions
of Subchapter A of Chapter 24 of this code.
Acts 1979, 66th Leg., p. 2248, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 4823, ch. 851, Sec. 10,
eff. Aug. 29, 1983.
Sec. 21.08. INTANGIBLES OF CERTAIN FINANCIAL INSTITUTIONS. (a)
The taxable situs of intangible property owned by an insurance
company incorporated under the laws of this state is determined
as provided by Article 4.01, Insurance Code.
(b) The taxable situs of intangible property owned by a savings
and loan association is determined as provided by Section 89.003,
Finance Code.
Acts 1979, 66th Leg., p. 2248, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.89, eff.
Sept. 1, 1999.