HomeMy WebLinkAboutResolution 2007-060RESOLUTION NO. 2007-060
A RESOLUTION AUTHORIZING THE EXECUTION OF AN
INTERLOCAL AGREEMENT WITH THE NORTH CENTRAL TEXAS
COUNCIL OF GOVERNMENTS AND POLITICAL SUBDIVIS10wS
WITHIN THE BOUNDARIES OF THE NORTH CENTRAL TEXAS
COUNCIL OF GOVERNMENTS RELATIVE TO EXPRESSING THEIR
INTENTION TO NOT ALLOW THE AD VALOREM TAX EXEMPTION
FOR "GOODS IN TRANSIT" PURSUANT TO TEXAS TAX CODE,
SECTION 11.253
WHEREAS, the Texas State Legislature has authorized the formuiation of ~nterlocal
cooperation agreements between and among governmentaf entities
pursuant to the Interlocal Cooperation Act, Chapter 791 of the Texas
Government Code, as amended.
WHEREAS, the City of North Richland Hills believes that this agreement is necessary for
the benefit of the public and has the legal authority to provide the
governmental function which is the subject of the Interlocal Agreement; and
WHEREAS, The Texas Constitution was amended in 1989 by the addition of Article 8,
Section 1-j, to exempt from ad valorem taxation certain tangible personal
property to include warehouse inventory that is detained in the State for
assembling, storing, manufacturing, processing or fabricating purposes by
the person who acquired or imported the property and is transported
outside of the State not later than 175 days after date the person acquired
or imported into the State; and
WHEREAS, the Texas Tax Code was amended in 1989 pursuant to the Constitutional
amendment by adding Section 11.151, to aHow for the exemption of
"freeport" goods, which are defined as property delineated in Texas
Constitution, Article 8, Section 1-j; and
WHEREAS, the Texas Tax Code, Section 11.251 was amended in 1991, 1993 and 2001
to its current wording; and
WHEREAS, The Texas Constitution was amended in 2001 to add Article VIII, Section 1-
n to allow the legislature to add an ad vaforem tax exemption for tangible
personal property held at certain locat+ons only temporarily for assembling,
manufacturing, processing, or other commercial purposes; and
WHEREAS, the 80th legislature in 2007,pursuant to The Texas Constitution, Article VIII,
Section 1-n, passed House Bill 621 creating Texas Tax Code, Section
11.253 to allow certain tangible personal property, defined as "goods in
transit" to be exempt from ad valorem taxation; and
Resolution No. 2007-060
Page 1 of 7
WHEREAS, the major differences in the exemption of Texas Tax Code, Sections 11.251
and 11.253 is that Section 11.253 alfows the exemption for property that will
be forwarded to another location in this state or outside this state, and the
property is detained at a location in this state that is not owned or under the
control of the property owner for assembling, storing, manufacturing;
processing or fabricating purposes by the person who acquired or imported
the property; and
WHEREAS, Texas Tax Code Section 11.253 allows the governing body of a taxing unit
to tax "goods in transit" which are not exempt by other law if it takes action
before January 1 of the tax year for which the taxing unit intends to tax such
goods; and
WHEREAS, a property owner who receives the exemption from Texas Tax Code,
Section 11.253 is not eligible to receive the exemption of Texas Tax Code,
Section 11.251 for the same property; and
WHEREAS, the exemption of "goods in transit" from taxation would result in the loss of
needed revenue to the taxing units and would be an inequitable shift of the
tax burden to the homeowners and local businesses; and
WHEREAS, those taxing units that cannot afford to grant such an exemption will be
negatively impacted by the exemption of "goods in transit"; and
WHEREAS, all the taxing units within the NCTCOG allow for the exemption of "freeporY'
goods; and
WHEREAS, the City of North Richland Hills woufd like to acknowledge that an ad
valorem tax exemption for "goods in transit" would not be in the best interest
of the political subdivision and that the political subdivision intends to not
grant such exemption; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND
HILLS, TEXAS:
That the City Manager or his designee is hereby authorized to execute an Interlocaf
Agreement with the North Central Texas Council of Governments and the politicaf
subdivision of the North Central Texas Council of Governments relative to expressing
their intention to not allow the ad valorem tax exemption for "goods in transit" pursuant
to Texas Tax Code, Section 11.253.
Resolution No. 2007-060
Page 2 of 7
A substantial copy of the agreement is attached hereto and incorporated herein for all
intents and purposes.
PASSED AND APPROVED on this the 22nd day of Octo
CITY
By:
Patricia Hutson,
APP U TO F RM AND LEGALITY:
Geor e. Sta les City Attorney
APPROVED AS TO CONTENT:
~~~ ~~ ~ ~
Thad Chambers, Economic Development Director
Trevino, Mayor
Resolution No. 2007-060
Page 3 of 7
INTERJURISDICTIONAL
INTERLOCAL AGREEMENT
THE STATE OF TEXAS §
§ KNOW ALL BY THESE PRESENTS
COUNTY OF §
THIS INTERLOCAL AGREEMENT (hereafter "AgreemenY') is made and entered
into by, between and among the signatories which are comprised of the North Central
Texas Council of Governments (hereinafter referred to NCTCOG), and any political
subdivision or taxing unit located wholly within the sixteen counties covered by the
North Central Texas Council of Governments.
WHEREAS, the Texas State Legislature has authorized the formulation of interlocal
cooperation agreements between and among governmental entities
pursuant to the Interlocal Cooperation Act, Chapter 791 of the Texas
Government Code, as amended.
WHEREAS, the governing bodies of each entity befieves that this agreement is
necessary for the benefit of the public and that each party has the legal
authority to provide the governmental function which is the subject of the
Interlocal Agreement; and
WHEREAS, The Texas Constitution was amended in 1989 by the addition of Article 8,
Section 1-j, to exempt from ad valorem taxation certain tangible personaf
property to include warehouse inventory that is detained in the State for
assembling, storing, manufacturing, processing or fabricating purposes by
the person who acquired or imported the property and is transported
outside of the State not later than 175 days after date the person acquired
or imported into the State; and
WHEREAS, the Texas Tax Code was amended in 1989 pursuant to the Constitutional
amendment by adding Section 11.251, to allow for the exemption of
"freeport" goods, which are defined as property delineated in Texas
Constitution, Article 8, Section 1 j; and
WHEREAS, the Texas Tax Code, Section 11.251 was amended in 1991, 1993 and 2001
to its current wording; and
WHEREAS, The Texas Constitution was amended in 2001 to add Article VIII, Section 1-
n to allow the legislature to add an ad valorem tax exemption for tangible
personal property held at certain locations only temporarily for assembling,
manufacturing, processing, or other commercial purposes; and
Resolution No. 2007-060
Page 4 of 7
WHEREAS, the 80th legislature in 2007,pursuant to The Texas Constitution, Article VIII,
Section 1-n, passed House Bifl 621 creating Texas Tax Code Section
11.253 to allow certain tangible personaf property, defined as "goods in
transit" to be exempt from ad valorem taxation; and
WHEREAS, the major differences in the exemption of Texas Tax Code, Sections 11.251
and 11.253 is that Section 11.253 allows the exemption for property that will
be forwarded to another location in this state or outside this state, and the
property is detained at a location in this state that is not owned or under the
control of the property owner for assembling, storing, manufacturing;
processing or fabricating purposes by the person who acquired or imported
the property; and
WHEREAS, Texas Tax Code, Section 11.253 allows the governing body of a taxing unit
to elect to tax "goods in transit" which are not exempt by other law if it takes
action before January 1 of the tax year for which the taxing unit intends to
tax such goods; and
WHEREAS, a property owner who receives the exemption from Texas Tax Code,
Section 11.253 is not eligible to receive the exemption of Texas Tax Code,
Section 11.251 for the same property; and
WHEREAS, the exemption of "goods in transit" from taxation would result in th~ loss of
needed revenue to the taxing units and woufd be an inequitabfe sf~ift of the
tax burden to the homeowners and local businesses; and
WHEREAS, those taxing units that cannot afford to grant such an exemption will be
negatively impacted by the exemption of "goods in transit"; and
WHEREAS, all the taxing units within the NCTCOG allows for the exemption of
"freeport" goods; and
WHEREAS, the NCTCOG supports its member local governments in their effort to
preserve an equitable tax structure which is capable of sustaining services
and service levels defined by their citizens; and
WHEREAS, the political entities within the NCTCOG would like to acknowledge that an
ad valorem tax exemption for "goods in transit" would not be in the best
interest of the political subdivision and that the political subdivisions intends
to not grant such exemption; NOW THEREFORE,
In consideration of the premises and the agreements, covenants and promises
herein set forth, it is agreed as follows:
1. RECITALS. The recitals set forth above are true and correct.
Resolution No. 2007-060
Page 5 of 7
2. IMPLEMENTATION. Signatories by its signature indicates the intent of the
signatories to impose ad valorem taxes upon "goods in transit" as defined in
Texas Tax Code, Section 11.253. The parties further agree that it is their intent
at the time of signature, to hold a public hearing and fulfill the requirements of
Texas Tax Code Section 11.253 to deny such exemption, before January 1,
2008.
3. NOTICE. The signatories agree that if it decides to not to act and to allow the
exemption of Texas Tax Code Section 11.253 to come into effect that it uvill notify
the other signatories by November 1, 2007. The notice will be effected by
sending written or faxed notice to NCTCOG at the following address or fax
number.
Mike Eastland
P.O. Box 5888
Arlington, TX 76005-5888
Telephone #:817-695-9100
Facsimile #:817-704-2543
NCTCOG will then notify all other signatories by the quickest reasonable means
possible through the contact person designated in writing by each of the
signatories.
4. NO VERBAL AGREEMENT. This Agreement contains all the terms,
commitments and covenants of the PARTIES pursuant to this Contract. Any
verbal or written commitment not contained in this Agreement or expressly
referred to in this Agreement and incorporated by reference shall have no force
or effect.
5. AGREEMENT INTERPRETATION AND VENUE. The signatories covenant and
agree that any litigation relating to this AGREEMENT, the terms and canditions
of the AGREEMENT will be interpreted according to the laws of the State of
Texas and venue shall be proper exclusively in Tarrant County, Texas.
6. IMMUNITY. It is expressly understood and agreed that, in the executiom of this
AGREEMENT, no party waives, nor shal{ be deemed hereby to waive, any
immunity or defense that would otherwise be available to it against claim5 arising
in the exercise of governmental powers and functions.
7. SEVERABILITY. If any of the terms, sections, subsections, sentences, elauses,
phrases, provisions, covenants or conditions of this AGREEMENT are for any
reason held to be invalid, void or unenforceable, the remainder of the terms,
sections, subsections, sentences, clauses, phrases, provisions, covenants, or
conditions in this AGREEMENT shall remain in full force and effect and shall in
no way be affected, impaired or invalidated.
Resolution No. 2007-060
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EXECUTED by the Signatories hereto, each respective entity acting by and
through its duly authorized official as required by law, on multiple counterparts each of
which shall be deemed to be an original, on the date specified on the multiple
counterpart executed by each entity.
CITY OF NORTH RICHLAND HILLS
By:
Larry J. Cunningham, City Manager
ATTEST:
Patricia Hutson, City Secretary
APPROVED AS TO FORM AND LEGALITY:
George A. Staples, City Attorney
Resolution No. 2007-060
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