Tex. Tax Code § 11.4391 — LATE APPLICATION FOR FREEPORT EXEMPTION

(a) The chief appraiser shall accept and approve or deny an application for an exemption for freeport goods under Section 11.251 after the deadline for filing it has passed if it is filed on or before the later of: (1) June 15; or (2) if applicable, the 60th day after the date on which the chief appraiser delivers notice to the property owner under Section 22.22 . (b) If the application is approved, the property owner is liable to each taxing unit allowing the exemption for a penalty in an amount equal to the lesser of: (1) 10 percent of the difference between the amount of tax imposed by the taxing unit on the inventory or property, a portion of which consists of freeport goods, and the amount that would otherwise have been imposed; or (2) 10 percent of the amount of tax imposed by the taxing unit on the inventory or property, a portion of which consists of freeport goods. (c) The chief appraiser shall make an entry on the appraisal records for the inventory or property indicating the property owner's liability for the penalty and shall deliver a written notice of imposition of the penalty, explaining the reason for its imposition, to the property owner. (d) The tax assessor for a taxing unit that taxes the inventory or property shall add the amount of the penalty to the property owner's tax bill, and the tax collector for the unit shall collect the penalty at the time and in the manner the collector collects the tax. The amount of the penalty constitutes a lien against the inventory or property against which the penalty is imposed, as if it were a tax, and accrues penalty and interest in the same manner as a delinquent tax. Added by Acts 2001, 77th Leg., ch. 125, Sec. 3, eff. Sept. 1, 2002. Renumbered from Tax Code Sec. 11.439 by Acts 2003, 78th Leg., ch. 1275, Sec. 2(122), eff. Sept. 1, 2003. Amended by: Acts 2017, 85th Leg., R.S., Ch. 357 (H.B. 2228 ), Sec. 1, eff. January 1, 2018. Acts 2019, 86th Leg., R.S., Ch. 944 (S.B. 2 ), Sec. 26, eff. January 1, 2020. Acts 2025, 89th Leg., R.S., Ch. 1004 (S.B. 1352 ), Sec. 2, eff. September 1, 2025.