18-20 - OTOWN OF PROSPER, TEXAS
ORDINANCE NO. 18-20
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF PROSPER,
TEXAS, REPEALING ORDINANCE NO. 01-34 RELATING TO THE AD
VALOREM TAXATION OF LEASED MOTOR VEHICLES; MAKING FINDINGS;
AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Section 11.252 of the Texas Tax Code provides, in part, that leased motor
vehicles are entitled to an exemption from any ad valorem taxation if the lessee does not hold the
vehicle for the production of income and the vehicle is used primarily for activities that do not
involve the production of income; and
WHEREAS, Section 11.252 of the Texas Tax Code also provides, in part, that a
municipality could adopt an ordinance prior to January 1, 2002, the effect of which would be the
continued ad valorem taxation of leased motor vehicles; and
WHEREAS, on December 11, 2001, the Town Council adopted Ordinance No. 01-34
which continued the ad valorem taxation of leased motor vehicles; and
WHEREAS, the Town has determined that it no longer wishes to continue the ad valorem
taxation of leased motor vehicles so that those leased motor vehicles not used for the production
of income, as defined in Section 11.252 of the Texas Tax Code, may be exempt from such
taxation.
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 No. 01-34 of the Town of
Prosper, Texas, is hereby repealed in its entirety.
SECTION 3
This Ordinance shall become effective from and after the date of its adoption.
DULY PASSED, APPROVED, AND ADOPTED BY THE TOWN COUNCIL OF THE
TOWN OF PROSPER, TEXAS, ON THIS 27TH DAY OF MARCH, 2018.
Ray Smith Mayor
►� 1'� dip
ATTEST:
rft
Ft•
•
% ++r i•
Ro yn at le, n ecretary �rAS'1����``
rl
APPROVED AS TO FORM AND LEGALITY:
Terrence S. Welch, Town Attorney
Ordinance No. 18-20, Page 2