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In November 2001, the citizens of the State of Texas approved an amendment to the state
Constitution that extends the Freeport exemption for tangible, personal property held as
inventory. Before this time, the Freeport exemption applied only to inventory being shipped to
nearby states. The expanded exemption includes goods-in-transit to locations within the state of
Texas, and is commonly referred • as the "Super" Freeport exemption.
As a result of the enabling legislation adopted by the 80t�' Texas Legislature in 200
municipalities have the ability to opt out of this exemption. In October 2007, the Citty Coun
exercised this right by adopting Ordinance 17856-10-2007. 1
Pursuant to the Texas Tax Code, Section 11.253, the City will continue to opt out of the Super
Freeport exemption until otherwise approved by Ordinance. If the City Council wishes to
reinstate this exemption for the fiscal year beginning October 1, 2009, and ending September 30,
2010, two public hearings must be held and a new ordinance must be adopted on or before
December 31, 2008.
The City Council initially waived the Super Freeport exemption during the first available year. For
this reason, no data currently exist regarding the actual impact rescinding this waiver would have
on property tax revenue. However, it is expected that a repeal of this waiver would result in a
decrease in revenue, all other things held constant.
ISSUED BY THE CrrY MANAGER FORT WORTH, TEXAS