HomeMy WebLinkAboutORD 2007-063 ORDINANCE NO. 2007-63
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS, AMENDING THE CODE OF
ORDINANCES BY AMENDING CHAPTER 21, TAXATION,
BY ADDING SECTION 21-10 IMPOSING A TAX ON
GOODS IN TRANSIT; PROVIDING A SEVERABILITY
CLAUSE; DECLARING AN EMERGENCY AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, in November 2001, the Texas voters approved an amendment to the
Texas Constitution adding Article VIII, Section 1-n, authorizing the Texas Legislature to
exempt form ad valorem taxation "goods in transit"; and
WHEREAS, the Texas Constitution, Article VIII, Section 1-n(d), allows a
municipality to tax "goods in transit" if the Texas Legislature authorizes an exemption;
and
WHEREAS, the 80th Texas Legislature enacted House Bill 621, to be codified at
Texas Tax Code § 11.253, exempting "goods in transit" from taxation but authorizing
municipalities to impose a tax on such goods following a public hearing; and
WHEREAS, the City Council has held a public hearing at which members of the
public were permitted to speak for or against the taxation of"goods in transit"; and
WHEREAS, the City has complied with all necessary laws and other conditions
precedent prior to enacting this ordinance; and
WHEREAS, the City Council wishes to amend Chapter 21, and deems such
amendments to be in the best interests of and necessary to protect the health, safety,
and welfare of the public.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated herein above are found to be true and
correct and are incorporated herein by reference as if copied in their entirety.
Section 2. That Chapter 21 Taxation of the Grapevine Code of Ordinances is
hereby amended by the addition of a new Subsection 21-10 to read as follows:
"Sec. 21-10. Tax imposed on goods in transit
(a) Definitions:
(1) "Dealer's motor vehicle inventory," "dealer's vessel and outboard
motor inventory," "dealer's heavy equipment inventory," and "retail
manufactured housing inventory" have the meanings assigned by
Subchapter B, Chapter 23 of the Texas Tax Code.
(2) "Goods in transit" means tangible personal property that:
(A) is acquired in or imported into this state to be forwarded to
another location in this state or outside this state;
(B) is detained at a location in this state in which the owner of the
property does not have a direct or indirect ownership interest for
assembling, storing, manufacturing, processing, or fabricating
purposes by the person who acquired or imported the property;
(C) is transported to another location in this state or outside this
state not later than 175 days after the date the person acquired
the property in or imported the property into this state; and
(D) does not include oil, natural gas, petroleum products, aircraft,
dealer's motor vehicle inventory, dealer's vessel and outboard
motor inventory, dealer's heavy equipment inventory, or retail
manufactured housing inventory.
(3) "Location" means a physical address.
(4) "Petroleum product" means a liquid or gaseous material that is an
immediate derivative of the refining of oil or natural gas.
(b) Tax Imposed. The City hereby imposes a tax on "goods in transit", as
provided by Texas Tax Code § 11.253(j), and not exempt from taxation by
any other law."
Section 3. The effective date for these amendments shall be the date of passage
by the City Council, and all customers shall be billed under the new rates for usage
commencing said date.
Section 4. If any section, article, paragraph, sentence, clause, phrase or word
in this ordinance, or application thereto to any person or circumstance is held invalid or
unconstitutional by a court of competent jurisdiction, such holding shall not affect the
validity of the remaining portions of this ordinance; and the City Council hereby declares
it would have passed such remaining portions of the ordinance despite such invalidity,
which remaining portions shall remain in full force and effect.
Section 5. The fact that the present ordinances and regulations of the City of
Grapevine, Texas, are inadequate to properly safeguard the health, safety, morals,
ORD. NO. 2007-63 2
Section 5. The fact that the present ordinances and regulations of the City of
Grapevine, Texas, are inadequate to properly safeguard the health, safety, morals,
peace, and general welfare of the public creates an emergency which requires that this
ordinance become effective from and after the date of its passage, and it is accordingly
so ordained.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, on this the 20th day of November, 2007.
APPROVED:
William D. Tate
Mayor
ATTEST:
C,7r,&f,
Linda Huff
City Secretary
APPROVED AS TO FORM:
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John F. Boyle, Jr.
City Attorney
ORD. NO. 7n07_f 3