TAX CODE

SUBTITLE D. APPRAISAL AND ASSESSMENT

CHAPTER 21. TAXABLE SITUS


	§ 21.01.  REAL PROPERTY.  Real property is taxable by a 
taxing unit if located in the unit on January 1, except as provided 
by Chapter 41, Education Code.

Acts 1979, 66th Leg., p. 2247, ch. 841, § 1, eff. Jan. 1, 1979.  
Amended by Acts 1993, 73rd Leg., ch. 347, § 4.10, eff. May 31, 
1993;  Acts 1997, 75th Leg., ch. 165, § 6.74, eff. Sept. 1, 1997.


	§ 21.02.  TANGIBLE PERSONAL PROPERTY 
GENERALLY.  (a)  Except as provided by Subsection (b) and Sections 
21.021, 21.04, and 21.05, tangible personal property is taxable by 
a taxing unit if:
		(1)  it is located in the unit on January 1 for more 
than a temporary period;
		(2)  it normally is located in the unit, even though it 
is outside the unit on January 1, if it is outside the unit only 
temporarily;
		(3)  it normally is returned to the unit between uses 
elsewhere and is not located in any one place for more than a 
temporary period;  or
		(4)  the owner resides (for property not used for 
business purposes) or maintains his principal place of business in 
this state (for property used for business purposes) in the unit and 
the property is taxable in this state but does not have a taxable 
situs pursuant to Subdivisions (1) through (3) of this section.
	(b)  Tangible personal property having taxable situs at the 
same location as real property detached from a school district and 
annexed by another school district under Chapter 41, Education 
Code, is taxable in the tax year in which the detachment and 
annexation occurs by the same school district by which the real 
property is taxable in that tax year under Chapter 41, Education 
Code.  For purposes of this subsection and Chapter 41, Education 
Code, tangible personal property has taxable situs at the same 
location as real property detached and annexed under Chapter 41, 
Education Code, if the detachment and annexation of the real 
property, had it occurred before January 1 of the tax year, would 
have changed the taxable situs of the tangible personal property 
determined as provided by Subsection (a) from the school district 
from which the real property was detached to the school district to 
which the real property was annexed.
	(c)  Tangible personal property has taxable situs in a school 
district that is the result of a consolidation under Chapter 41, 
Education Code, in the year in which the consolidation occurs if the 
property would have had taxable situs in the consolidated district 
in that year had the consolidation occurred before January 1 of that 
year.

Acts 1979, 66th Leg., p. 2247, ch. 841, § 1, eff. Jan. 1, 1982.  
Amended by Acts 1983, 68th Leg., p. 1908, ch. 353, § 2, eff. Jan. 
1, 1984;  Acts 1989, 71st Leg., ch. 534, § 5, eff. Aug. 28, 1989;  
Acts 1993, 73rd Leg., ch. 347, § 4.11, eff. May 31, 1993;  Acts 
1997, 75th Leg., ch. 165, § 6.75, eff. Sept. 1, 1997.


	§ 21.021.  VESSELS AND OTHER WATERCRAFT.  (a)  A vessel 
or other watercraft used as an instrumentality of commerce (as 
defined in Section 21.031(b) of this code) is taxable pursuant to 
Section 21.02 of this code.
	(b)  A special-purpose vessel or other watercraft not used as 
an instrumentality of commerce (as defined in Section 21.031(b) of 
this code) is deemed to be located on January 1 for more than a 
temporary period for purposes of Section 21.02 of this code in the 
taxing unit in which it was physically located during the year 
preceding the tax year.  If the vessel or watercraft was physically 
located in more than one taxing unit during the year preceding the 
tax year, it is deemed to be located for more than a temporary 
period for purposes of Section 21.02 of this code in the taxing unit 
in which it was physically located for the longest period during the 
year preceding the tax year or for 30 days, whichever is longer.  If 
a vessel or other watercraft is not deemed to be located in any 
taxing unit on January 1 for more than a temporary period pursuant 
to this subsection, the property is taxable as provided by 
Subdivisions (2) through (4) of Section 21.02 of this code.
	(c)  This section applies solely to a determination of 
taxable situs and does not apply to a determination of jurisdiction 
to tax under Section 11.01 of this code.

Added by Acts 1983, 68th Leg., p. 1908, ch. 353, § 3, eff. Jan. 1, 
1984. 


	§ 21.03.  INTERSTATE ALLOCATION.  (a)  If personal 
property that is taxable by a taxing unit is used continually 
outside this state, whether regularly or irregularly, the appraisal 
office shall allocate to this state the portion of the total market 
value of the property that fairly reflects its use in this state.
	(b)  The comptroller shall adopt rules:                                        
		(1)  identifying the kinds of property subject to this 
section;  and        
		(2)  establishing formulas for calculating the 
proportion of total market value to be allocated to this state.

Acts 1979, 66th Leg., p. 2247, ch. 841, § 1, eff. Jan. 1, 1982.  
Amended by Acts 1991, 72nd Leg., 2nd C.S., ch. 6, § 14, eff. 
Sept. 1, 1991.


	§ 21.031.  ALLOCATION OF TAXABLE VALUE OF VESSELS AND 
OTHER WATERCRAFT USED OUTSIDE THIS STATE.  (a)  If a vessel or 
other watercraft that is taxable by a taxing unit is used 
continually outside this state, whether regularly or irregularly, 
the appraisal office shall allocate to this state the portion of the 
total market value of the vessel or watercraft that fairly reflects 
its use in this state.  The appraisal office shall not allocate to 
this state the portion of the total market value of the vessel or 
watercraft that fairly reflects its use in another state or 
country, in international waters, or beyond the Gulfward boundary 
of this state.
	(b)  The appraisal office shall make the allocation as 
follows:              
		(1)  The allocable portion of the total fair market 
value of a vessel or other watercraft used as an instrumentality of 
commerce that is taxable in this state is determined by multiplying 
the total fair market value by a fraction, the numerator of which is 
the number of miles the vessel or watercraft was operated in this 
state during the year preceding the tax year and the denominator of 
which is the total number of miles the vessel or watercraft was 
operated during the year preceding the tax year.  For purposes of 
this section, "vessel or other watercraft used as an 
instrumentality of commerce" means a vessel or other watercraft 
that is primarily employed in the transportation of cargo, 
passengers, or equipment, and that is economically employed when it 
is moving from point to point as a means of transportation.
		(2)  The allocable portion of the total fair market 
value of a special-purpose vessel or other watercraft not used as an 
instrumentality of commerce is determined by multiplying the total 
fair market value by a fraction, the numerator of which is the 
number of days the vessel or watercraft was physically located in 
this state during the year preceding the tax year and the 
denominator of which is 365.  For purposes of this section, 
"special-purpose vessel or other watercraft not used as an 
instrumentality of commerce" means a vessel or other watercraft 
that:
			(A)  is designed to be transient and customarily 
is moved from location to location on a more or less regular basis;
			(B)  is economically employed when operated in a 
localized area or in a fixed place;  and
			(C)  is not primarily employed to transport cargo, 
passengers, and equipment but rather to perform some specialized 
function or operation not requiring constant movement from point to 
point.
	(c)  A vessel or other watercraft used as an instrumentality 
of commerce or a special-purpose vessel or other watercraft not 
used as an instrumentality of commerce that is used outside this 
state and is in this state solely to be converted, repaired, stored, 
or inspected is presumed to be in interstate, international, or 
foreign commerce and not located in this state for longer than a 
temporary period for purposes of Sections 11.01 and 21.02.
	(d)  If the allocation provisions of this section do not 
fairly reflect the use of a vessel or other watercraft in this 
state, an alternate allocation formula shall be utilized if the 
property owner or appraisal office demonstrates that:
		(1)  the allocation formula specified in this section 
is arbitrary and unreasonable as applied to the vessel or 
watercraft;  and
		(2)  the formula or indication of use proposed by the 
property owner or appraisal office more fairly reflects the vessel 
or watercraft's use in this state than that specified in this 
section.
	(e)  To receive an allocation of value under this section, a 
property owner must apply for the allocation on a form that 
substantially complies with the form prescribed by the comptroller.  
The application must be filed with the chief appraiser for the 
district in which the property to which the application applies is 
taxable before the approval of the appraisal records by the 
appraisal review board as provided by Section 41.12 of this code.
	(f)  The comptroller shall promulgate forms and may adopt 
rules consistent with the provisions of this section.
	(g)  A vessel or other watercraft to be used as an 
instrumentality of commerce or a special-purpose vessel or other 
watercraft not to be used as an instrumentality of commerce that is 
under construction in this state is presumed to be in interstate, 
international, or foreign commerce and not located in this state 
for longer than a temporary period for purposes of Sections 11.01 
and 21.02.
	(h)  Tangible personal property in this state is presumed to 
be in interstate, international, or foreign commerce and not 
located in this state for longer than a temporary period for 
purposes of Sections 11.01 and 21.02 if the owner demonstrates to 
the chief appraiser that the owner intends to incorporate the 
property in or attach the property to an identified vessel or other 
watercraft described by Subsection (c) or (g).

Added by Acts 1983, 68th Leg., p. 1908, ch. 353, § 3, eff. Jan. 1, 
1984.  Amended by Acts 1991, 72nd Leg., 2nd C.S., ch. 6, § 15, 
eff. Sept. 1, 1991;  Acts 2001, 77th Leg., ch. 117, § 1, eff. Jan. 
1, 2002.


	§ 21.04.  RAILROAD ROLLING STOCK.  (a)  A portion of the 
total market value of railroad rolling stock that is appraised as 
provided by Subchapter B of Chapter 24 of this code is taxable by 
each county in which the railroad operates.
	(b)  The portion of the total market value that is taxable by 
a county is determined by the provisions of Subchapter B of Chapter 
24 of this code.

Acts 1979, 66th Leg., p. 2247, ch. 841, § 1, eff. Jan. 1, 1982.  
Amended by Acts 1983, 68th Leg., p. 4823, ch. 851, § 9, eff. Aug. 
29, 1983.


	§ 21.05.  COMMERCIAL AIRCRAFT.  (a)  If a commercial 
aircraft that is taxable by a taxing unit is used both in this state 
and outside this state, the appraisal office shall allocate to this 
state the portion of the fair market value of the aircraft that 
fairly reflects its use in this state.  The appraisal office shall 
not allocate to this state the portion of the total market value of 
the aircraft that fairly reflects its use beyond the boundaries of 
this state.
	(b)  The allocable portion of the total fair market value of 
a commercial aircraft that is taxable in this state is presumed to 
be the fair market value of the aircraft multiplied by a fraction, 
the numerator of which is the product of 1.5 and the number of 
revenue departures by the aircraft from Texas during the year 
preceding the tax year, and the denominator of which is the greater 
of (1) 8,760, or (2) the numerator.
	(c)  During the time in which any commercial aircraft is 
removed from air transportation service for repair, storage, or 
inspection, such aircraft is presumed to be in interstate, 
international, or foreign commerce and not located in this state 
for longer than a temporary period for purposes of Section 11.01 of 
this code.
	(d)  A certificated air carrier shall designate the tax situs 
of commercial aircraft that land in Texas as either the carrier's 
principal office in Texas or that Texas airport from which the 
carrier has the highest number of Texas departures.
	(e)  For purposes of this subchapter, a commercial aircraft 
shall mean an instrumentality of air commerce that is:
		(1)  primarily engaged in the transportation of cargo, 
passengers, or equipment for others for consideration;
		(2)  economically employed when it is moving from point 
to point as a means of transportation;  and
		(3)  operated by a certificated air carrier.  A 
certificated air carrier is one engaged in interstate or intrastate 
commerce under authority of the U.S. Department of Transportation.

Added by Acts 1989, 71st Leg., ch. 534, § 6, eff. Aug. 28, 1989.           


	§ 21.055.  BUSINESS AIRCRAFT.  (a)  If an aircraft is 
used for a business purpose of the owner, is taxable by a taxing 
unit, and is used continually outside this state, whether regularly 
or irregularly, the appraisal office shall allocate to this state 
the portion of the fair market value of the aircraft that fairly 
reflects its use in this state.  The appraisal office shall not 
allocate to this state the portion of the total market value of the 
aircraft that fairly reflects its use beyond the boundaries of this 
state.
	(b)  The allocable portion of the total fair market value of 
an aircraft described by Subsection (a) is presumed to be the fair 
market value of the aircraft multiplied by a fraction, the 
numerator of which is the number of departures by the aircraft from 
a location in this state during the year preceding the tax year and 
the denominator of which is the total number of departures by the 
aircraft from all locations during the year preceding the tax year.
	(c)  This section does not apply to a commercial aircraft as 
defined by Section 21.05.

Added by Acts 1999, 76th Leg., ch. 970, § 1, eff. June 18, 1999;  
Acts 1999, 76th Leg., ch. 1481, § 7, eff. Sept. 1, 1999.


	§ 21.06.  INTANGIBLE PROPERTY GENERALLY.  (a)  Except as 
provided by Sections 21.07 through 21.09 of this code, intangible 
property is taxable by a taxing unit if the owner of the property 
resides in the unit on January 1, unless the property normally is 
used in this state for business purposes outside the unit.  In that 
event, the intangible property is taxable by each taxing unit in 
which the property normally is used for business purposes.
	(b)  Depositing intangible property with an agency of the 
state pursuant to a law requiring or authorizing the deposit is not 
using it for a business purpose at the depository.

Acts 1979, 66th Leg., p. 2248, ch. 841, § 1, eff. Jan. 1, 1982.            


	§ 21.07.  INTANGIBLES OF CERTAIN TRANSPORTATION 
BUSINESSES.  (a)  A portion of the total intangible value of a 
transportation business whose intangibles are appraised as 
provided by Subchapter A of Chapter 24 of this code is taxable by 
each county in which the business operates.
	(b)  The portion of the total value that is taxable as 
provided by Subsection (a) of this section is determined by the 
provisions of Subchapter A of Chapter 24 of this code.

Acts 1979, 66th Leg., p. 2248, ch. 841, § 1, eff. Jan. 1, 1982.  
Amended by Acts 1983, 68th Leg., p. 4823, ch. 851, § 10, eff. 
Aug. 29, 1983.


	§ 21.08.  INTANGIBLES OF CERTAIN FINANCIAL 
INSTITUTIONS.  (a)  The taxable situs of intangible property owned 
by an insurance company incorporated under the laws of this state is 
determined as provided by Article 4.01, Insurance Code.
	(b)  The taxable situs of intangible property owned by a 
savings and loan association is determined as provided by Section 
89.003, Finance Code.

Acts 1979, 66th Leg., p. 2248, ch. 841, § 1, eff. Jan. 1, 1982.  
Amended by Acts 1999, 76th Leg., ch. 62, § 7.89, eff. Sept. 1, 
1999.