DECEMBER 31, 2007: “SUPER FREEPORT” DEADLINE
"Super Freeport" is a property tax exemption for goods that reside in Texas temporarily while awaiting shipment to other locations within or outside of Texas (as contrasted with the current-law freeport exemption, which covers only goods shipped outside of Texas). This exemption was approved by Texas voters in 2001 as an amendment to the Texas Constitution, but only this year did the Texas Legislature enact enabling legislation.
The super freeport exemption is best described as a local option property tax exemption of the "opt-out" variety. The exemption automatically applies to a city unless the city does each of the following two things no later than December 31, 2007: (1) holds a hearing at which members of the public are allowed to speak for or against the taxation of super freeport goods; and (2) adopts an ordinance stating it wishes to continue taxing super freeport goods for tax year 2008. The hearing must take place prior to the adoption of such an ordinance.
A city that misses the December 31, 2007, deadline may choose to opt out of the exemption in future tax years.
Previous editions of the TML Legislative Update contain additional information about the exemption, including controversies surrounding its wording and scope, and an attorney general's opinion interpreting the exemption.