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HomeMy WebLinkAboutOrdinance 10378~a~ ORDINANCE N0. ~~~~~!1-C,5 AN ORDINANCE PROVIDING THAT THE CITY OF FORT WORTH WILL NOT TAX "FREEPORT GOODS" IN THE CITY WHICH WOULD OTHER- WISE BE EXEMPT FROM AD VALOREM TAXES UNDER THE PROVI- SIONS OF S.J.R. NO. 11 AND H.B. 2959; PROVIDING THAT THE CITY DOES NOT EXEMPT FREEPORT GOODS FROM TAXATION FOR THE 1989 TAX YEAR; PROVIDING THAT THE TERMS OF THIS ORDINANCE SHALL BE OF NO EFFECT IF THE CONSTITUTIONAL AMENDMENT PROPOSED BY S.J.R. NO. 11 IS NOT APPROVED BY THE VOTERS; PROVIDING THAT THI5 ORDINANCE SHALL BE CUMULATIVE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFEC- T I VE DATE . WHEREAS, the 71st Texas Legislature, Regular Session, 1989, adopted S.J.R. No. 11 which proposes an amendment to Article VIII of the Texas Constitution to authorize the exemption from ad valorem taxes of certain personal property temporarily in the state for certain purposes ("'freeport goods"); and WHEREAS, the proposed constitutional amendment will be submitted to the voters at an election on November 7, 1989; and WHEREAS, the Texas Legislature has further enacted H.B. 2959 which amends the Texas Tax Code to provide for the exemption of "freeport goods" from taxation but only if the constitutional amendment proposed by S.J.R. No. 11 is approved by the voters; and WHEREAS, S.J.R. No. 11 and S.B. 2959 provide that a City may tax property which would otherwise be exempt from taxation under the proposed constitutional amendment and statute if the govern- .~„ . ing bod y of the City takes official action in the manner provided by law to provide for the taxation of such property; and WHEREAS, S.J.R. No. 11 and H.B. 2959 require that any offi- cial action by the governing bod y of a city to tax such exempt property must be taken before April 1, 1990; and WHEREAS, the City Council finds that it would not be in the best interests of the citizens of the City of Fort Worth to tax property which would otherwise be exempt if the voters approve the proposed constitutional amendment; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITX OF FORT WORTH, TEXAS: SECT ION i . 1. The City Council will not take official action to tax any "freeport goods" in the City of Fort Worth which would otherwise be exempt from taxation under the provisions of S.J.R. No. 11 and H.B. 2959. 2. The City Council does not exempt from taxation any °°freeport goods" in the City of Fort Worth during the 1959 tax year . 3. The provisions of this Ordinance shall take effect only if the constitutional amendment proposed by S.J.R. No. 11 is approved by the voters. If the proposed constitutional amendment is not approved by the voters, this Ordinance shall have no effect. -2- ., . ~ ~, SECTION 2. This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (1986), as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordi- nances and such Code are hereby repealed. SECTION 3. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and, if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECT ION 4. The City Secretary of the City of Fort Worth is hereby directed to engross and enroll this ordinance by copying the caption and effective date in the minutes of the City Council and by filing the ordinance in the ordinance records of the City. -3- ~' r~ SECT ION 5. This ordinance shall take effect and be in full force and effect from and after its passage, and it is so ordained. APPROVED AS TO FORM AND LEGALITY: ~~ City Attorney Date : `~ ' 2- ~ ~~ ~ ' ADOPTED: Q~ / EFFECTIVE: _... ~ -4- ~;. °~- fit o 1~ort ~or°th ~e.~ccz~ ~'~1e.c1~E*~ ~ f ~ ~,~~.~ 4 ~" -~'unrlno-Z J x'11 ~IAV o~ ~~~ ~oWY~~~~ ~®~~~~~~~llti~~io~ TRANSP0IITATI0n~~U8LIC A!!G Y-A~ER AO ~'DATEATIOM • REFERENCE SUBJECY ADOPTLON OF ORDINANCE PAGE NUMBER CONCERNING AD VALOREM TAXATION 2 c-i-EC JuD E.$/29~89 G_8193 OF "FREEPORT GOODS" i or MUMICIVA COURT ADMIN•3~ - PkOSECUT c A~`~NDATION f'd6LICE A IINIStRATtOd•a It is recommended that the City Council adopt the attached Ordinance which cl,w•a provides that the City of Fort Worth will not tax "freeport goods" if a pro- ~~~sconstitutional amendment is approved by the Voters. MAMA©EY t ~ BACKGROUND The 71st Texas Legislature adopted S.J.R. No. 11 which proposes an amendment to article VIII of the Texas Constitution to authorize the exemption from ad valorem taxes of personal property temporarily in the State for certain pur- poses (°'freeport goods"). The term "freeport goods" means personal property which is brought into the state for assembling, storing, manufacturing, pro- cessing or fabrication and is transported outside the state not later than 175 days after the date it is brought into the state. The purpose of the proposed exemption is to promote economic development. The proposed constitutional amendment will be submitted to the voters at an election on November 7, 1989. The Legislature has also enacted H.B. 2959 which amends the Texas Tax Code to exempt "freeport goods" from taxation if the proposed constitutional amend- ment is approved by the voters. S.J.R. No. 11 and S.B. 2959 provide that a City may tax property which would otherwise be exempt from taxation under the proposed constitutional amendment and statute. To tax such property, the governing body of a City must take official action before April 1, 1990. On August 8, 1989, the City Council took several actions concerning develop- ment of the American Airlines maintenance base adjacent to Alliance Airport. One of the Council Actions was the approval of M&C C-11803 which authorized the City Manager_tohsign a master agreement for the maintenance base. Section 4.04 of the master agreement states in part as follows: "4.04. Freeport Implementation } i Prior to September 1, 1989, the City will adopt such ordinances and related rules and regulations as may be appropriate or necessary to implement and~.mak~°'effective for the benefit of American "freeport" status for~its various items of inventory, supplies, aircraft and/ or other items'of~tangible personal property which may be located at the Project for a temporary period to the maximum extent per- mitted by law in the event the state constitutional amendment contemplated by S.J.R. 11 passed by the 1989 Texas legislature is approved by the voters in November of 1989 ..." DATE REFERENCE SUBJECT ADOPTION OF ORDINANCE PAGE NUMBER CONCERNING AD VALOREM TAXATION 2 ,f 2 8/29/89 G-8193 OF "FREE , Adoption of the attached ordinance is necessary to satisfy this requirement. The exemption of "freeport goods" will also promote economic development and lead to the creation of additional jobs with manufacturers such as the.xTandy Corporation. APPROVED 8Y CITY CQUNCiI AUG 29 1989 9~1a'fs~dL,,,° cxzq secreca>1r ~ ~-• city of Fon worth, T.sn• SUBMITTED FOR THE CITY MANAGER'S DISPOSITION BY COUNCIL: ^ APPROVED PROCESSED BY OFFICE BY David Ivor ^ OTHER (DESCRIBE) ORIGINATING DEPARTMENT HEAO• Wade Adkins CITY SECRETARY FOR ADDITIONAL INFORMATION CONTACT Adkins 7606 ted Ordinanc AAtt 1\0~ ,.,r;,,, DATE .~~rr f~' t, ,Q -~n a Ltb