17-42 O - Providing for the Property Tax Exemption of Freeport GoodsTOWN OF PROSPER, TEXAS
ORDINANCE NO. 17-42
AN ORDINANCE OF THE TOWN OF PROSPER, TEXAS, REPEALING
ORDINANCE NOS. 89-09 AND 90-04, WHICH PROVIDED FOR THE
TAXATION OF PROPERTY EXEMPT PURSUANT TO ARTICLE VIII,
SECTION 1-j OF THE TEXAS CONSTITUTION ("FREEPORT GOODS");
PROVIDING FOR THE PROPERTY TAX EXEMPTION OF FREEPORT
GOODS EFFECTIVE IMMEDIATELY AND FURTHER ACKNOWLEDGING
THAT ONCE THE FREEPORT GOODS PROPERTY TAX EXEMPTION IS
ADOPTED, IT CANNOT THEREAFTER BE RESCINDED, PURSUANT TO
ARTICLE VIII, SECTION 1-j(b) OF THE TEXAS CONSTITUTION;
PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, Article VIII, § 1-j of the Texas Constitution provides that in order "to promote
economic development in the State, goods, wares, merchandise, other tangible personal
property, and ores ("hereinafter referred to as "Freeport Goods"), other than oil, natural gas, and
other petroleum products, are exempt from ad valorem taxation if: (1) the property is acquired in
or imported into this State to be forwarded outside this State, whether or not the intention to
forward the property outside this State is formed or the destination to which the property is
forwarded is specified when the property is acquired in or imported into this State; (2) the property
is detained in this State for assembling, storing, manufacturing, processing, or fabricating
purposes by the person who acquired or imported the property; and (3) the property is transported
outside of this State not later than 175 days after the date the person acquired or imported the
property in this State; and
WHEREAS, the Town Council of the Town of Prosper, Texas, approved Ordinance Nos.
89-09 and 90-04, which provided for the taxation of Freeport Goods consistent with Article VIII,
§ 1-j of the Texas Constitution; and
WHEREAS, Article VIII, § 1-j(b) of the Texas Constitution provides that the Town Council
"may subsequently exempt the property from taxation by rescinding its action to tax the property.
The exemption applies to each tax year that begins after the date the action is taken and applies
to the tax year in which the action is taken if the governing body so provides. A governing body
that rescinds its action to tax the property may not take action to tax such property after the
rescission"; and
WHEREAS, the Town Council finds and determines that an exemption from taxation of
Freeport Goods will promote and enhance economic development in Prosper.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, THAT:
SECTION 1
The findings set forth above are incorporated into the body of this Ordinance as if fully set
forth herein.
SECTION 2
From and after the effective date of this Ordinance, Ordinance Nos. 89-09 and 90-04,
which provided for the taxation of Freeport Goods, are hereby repealed in their entirety.
SECTION 3
That all goods, wares, merchandise, other tangible personal property, and ores, other than
oil, natural gas, and other petroleum products, are exempt from ad valorem taxation, in the Town
of Prosper, consistent with Article VIII, section 1-j of the Texas Constitution. The ad valorem
taxation exemption shall commence immediately upon adoption of this Ordinance.
SECTION 4
All provisions of any ordinance in conflict with this Ordinance are hereby repealed to the
extent they are in conflict; but such repeal shall not abate any pending prosecution for violation of
the repealed ordinance, nor shall the repeal prevent a prosecution from being commenced for
any violation if occurring prior to the repeal of the ordinance. Any remaining portion of conflicting
ordinances shall remain in full force and effect.
SECTION 5
If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason,
held to be unconstitutional or invalid by a court of competent jurisdiction, such decision shall not
affect the validity of the remaining portions of this Ordinance. The Town of Prosper hereby
declares that it would have passed this Ordinance, and each section, subsection, clause or phrase
thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses,
and phrases be declared unconstitutional.
SECTION 6
This Ordinance shall become effective after its passage and publication, as required by
law.
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, ON THI 3T" DAY OF JUNE, 2017.
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APPROVED:
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Ordinance No. 17-42, Page 2
APPROVED AS TO FORM AND LEGALITY:
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Terrence S. Welch, Town Attorney
Ordinance No. 17-42, Page 3