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Counties Must Take Official Action to Tax Goods-In-Transit

By Ender Reed
TAC Legislative Staff

A provision in SB 1 by Sen. Robert Duncan, which passed during the special session, requires a county that wants the option to tax goods-in-transit to take official action by Dec. 31, 2011, in order to preserve this authority. Even counties that have previously opted to tax goods-in-transit must take action or the ability to tax those goods will be lost, which may result in a significant loss of personal property tax revenue.

If a county would like the authority to tax goods-in-transit after Jan. 1, 2012, then it must a) hold a public hearing and b) take official action imposing the tax on or after Oct. 1, 2011, and before Jan. 1 of the year for which the tax is to be in effect.

“Goods-in-transit” are tangible personal properties acquired in or imported into Texas to be forwarded to another location in Texas or outside of Texas not later than 175 days after the date of acquisition in or importation into Texas. 8 Sep 2011