12-20-2007 (City Council) Agenda Packet Wylie City Council
CITY:F WYLIE NOTICE OF MEETING
Special Called Meeting Agenda
December 20, 2007 - 6:30 pm
Wylie Municipal Complex - Council Chambers/Council Conference Room
2000 Highway 78 North
John Mondy Mayor
M. G. "Red" Byboth Mayor Pro Tern
David Goss Place 1
Kathy Spillyards Place 3
Merrill Young Place 4
Rick White Place 5
Carter Porter Place 6
Mindy Manson City Manager
Richard Abernathy City Attorney
Carole Ehrlich City Secretary
In accordance with Section 551.042 of the Texas Government Code, this agenda has been posted at the Wylie
Municipal Complex, distributed to the appropriate news media, and posted on the City website:
www.wylietexas.gov within the required time frame. As a courtesy, the entire Agenda Packet has also been posted
on the City of Wylie website: www.wvlietexas.gov.
The Mayor and City Council request that all cell phones and pagers be turned off or set to vibrate. Members of the
audience are requested to step outside the Council Chambers to respond to a page or to conduct a phone
conversation.
The Wylie Municipal Complex is wheelchair accessible. Sign interpretation or other special assistance for disabled
attendees must be requested 48 hours in advance by contacting the City Secretary's Office at 972.442.8100 or TD
972.442.8170.
CALL TO ORDER
Announce the presence of a Quorum.
INVOCATION & PLEDGE OF ALLEGIANCE
REGULAR AGENDA
Public Hearing
1. Hold a Public Hearing to hear evidence for or against the taxation of certain
tangible personal property held temporarily within the City of Wylie, Texas. (S.
Satterwhite, WEDC Executive Director)
December 20,2007 Wylie City Council Special Called Meeting Agenda Page 2 of 3
Executive Summary
In the 2007 session, the Texas Legislature passed HB621 which amends the Texas Tax Code, Section
11.253. The bill is very similar to the Freeport exemption passed many years ago,but has potentially larger
impact as time goes on. The City of Wylie has not passed the Freeport exemption and continues to tax
goods in transit, which is primarily inventory of companies such as Sanden International, Bayco Products,
Carlisle Coatings & Waterproofing, and Extruders division of Atrium Companies, Inc. HB 621 exempts
goods, principally inventory, that are stored in a location that is not owned by the owner of the goods and
transferred from that location to another location within 175 days. To continue taxing these goods,the City
of Wylie must hold a public hearing to determine whether the subject goods become exempt. Failure to act
to tax these goods will allow them to become exempt for the 2008 tax year.
General Business
2. Consider, and act upon, Ordinance No. 2007-44 to tax tangible personal property
which would otherwise be exempt pursuant to Texas Tax Code, Section 11.253. (S.
Satterwhite, WEDC Executive Director)
Executive Summary
In 1999,the Wylie Economic Development Corporation(WEDC) chose to recommend to the City Council
against approving the Freeport Exemption within the City of Wylie based upon the lack of interest in
exempting the existing Freeport value at the time of$31.7 million. Staff is unaware of what the current
Freeport valuation is at this time. HB621 amended the Texas Tax Code, Section 11.253 allowing the
exemption from taxation inventory goods stored in a location that is not owned by the owner of the goods
and are transferred from that location to another location within 175 days. The City Council may act to tax
these goods in the year following the year which the Council takes action. To continue to tax these type
goods, Council must act in such a manner prior to December 31,2007.
EXECUTIVE SESSION
Recess into Closed Session in compliance with Section 551.001, et.seq. Texas Government Code, to wit:
§§551.087 Deliberations regarding economic development negotiations. To discuss
commercial or financial information that the governmental body has received from a
business prospect that the governmental body seeks to have locate, stay or expand in or
near the territory of the governmental body and with which the governing body is
conducting economic development negotiations.
• Discussion regarding economic negotiations with Direct Development
RECONVENE INTO OPEN SESSION
Take any action as a result from Executive Session, including but not limited to:
3. Consider, and act upon, the acceptance of a Letter of Intent from Direct
Development relating to the proposed retail development on FM 544. (M. Manson,
City Manager)
December 20,2007 Wylie City Council Special Called Meeting Agenda Page 3 of 3
ADJOURNMENT
CERTIFICATION
I cent'that this Notice of Meeting was posted on this 17th day of December, 2007 at 5:00 p.m. as required by law
in accordance with Section 551.042 of the Texas Government Code and that the appropriate news media was
contacted. As a courtesy, this agenda is also posted on the City of Wylie website: www.wylietexas.gov.
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Wylie City Council
CITY OF WYLIE AGENDA REPORT
Meeting Date: 12-20-07 Item Number: 1
Department: WEDC (City Secretary's Use Only)
Prepared By: Sam Satterwhite Account Code:
Date Prepared: 12-17-07 Budgeted Amount:
Exhibits:
Subject
Hold a public hearing to hear evidence for or against the taxation of certain tangible personal property held
temporarily within the City of Wylie, Texas.
Recommendation
Hold a public hearing; no action required.
Discussion
In the 2007 session, the Texas Legislature passed HB621 which amends the Texas Tax Code, Section 11.253.
The bill is very similar to the Freeport exemption passed many years ago, but has potentially larger impact as
time goes on. The City of Wylie has not passed the Freeport exemption and continues to tax goods in transit,
which is primarily inventory of companies such as Sanden International, Bayco Products, Carlisle Coatings &
Waterproofing, and Extruders division of Atrium Companies, Inc.
HB 621 exempts goods, principally inventory, that are stored in a location that is not owned by the owner of the
goods and transferred from that location to another location within 175 days. To continue taxing these goods,
the City of Wylie must hold a public hearing to determine whether the subject goods become exempt. Failure to
act to tax these goods will allow them to become exempt for the 2008 tax year.
Approved By
Initial Date
Department Director SS 12/20/07
City Manager 11\�`�� l a l - /o7
Page 1 of 1
Wylie City Council
CITY OF WYLIE AGENDA REPORT
Meeting Date: 12-20-07 Item Number: 2
Department: WEDC (City Secretary's Use Only)
Prepared By: Sam Satterwhite Account Code:
Date Prepared: 12-17-07 Budgeted Amount:
Exhibits: 1
Subject
Consider, and act upon, Ordinance No. 2007-44 to tax tangible personal property in transit which would
otherwise be exempt pursuant to Texas Tax Code, Section 11.253.
Recommendation
Motion to approve Ordinance No. 2007-44 taxing tangible personal property in transit which would otherwise
be exempt pursuant to Texas Tax Code, Section 11.253.
Discussion
The City of Wylie currently does not exempt from taxation Freeport goods or "goods in transit" as does Collin
County and the Wylie Independent School District. In 1999, the Wylie Economic Development Corporation
(WEDC) chose to recommend to the City Council against approving the Freeport Exemption within the City of
Wylie based upon the lack of interest in exempting the existing Freeport value at the time of$31.7 million.
Staff is unaware of what the current Freeport valuation is at this time.
HB621 amended the Texas Tax Code, Section 11.253 allowing the exemption from taxation inventory goods
stored in a location that is not owned by the owner of the goods and are transferred from that location to another
location within 175 days. At present, this new law might have limited impact because most goods are probably
kept in facilities that are owned by the owners of the goods themselves. However, this may change rapidly. In
order to take advantage of this new law, owners may seek to transfer ownership of either the goods or the
facilities in which the goods are stored, manufactured, processed, etc. to legal entities with a different ownership
in order to exempt the property from taxation.
The City Council may act to tax these goods in the year following the year which the Council takes action. To
continue to tax these goods in transit, Council must act in such a manner prior to December 31, 2007. Failure to
act to tax these goods will allow them to be exempt for the 2008 tax year. Should the Wylie City Council
choose to exempt these goods from taxation in the future, as with all Freeport goods, it may choose to do so at
that time.
Approved By
Initial Date
Department Director SS 12-20-07
City Manager fit V r \ Ick'1'7 ^O
Page 1 of 1
ORDINANCE NO. 2007-44
AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, TO TAX
TANGIBLE PERSONAL PROPERTY IN TRANSIT WHICH
WOULD OTHERWISE BE EXEMPT PURSUANT TO TEXAS TAX
CODE, SECTION 11.253
WHEREAS, the 80TH Texas Legislature in Regular Session has enacted House bill 621 to
take effect on January 1, 2008, which added Tex. Tax Code §11.253 to exempt from taxation
certain tangible personal property held temporarily at a location in this state for assembling, storing,
manufacturing, processing or fabricating purposes (goods-in-transit) which property has been
subject to taxation in the past; and
WHEREAS, Tex. Tax Code §11.253(j) as amended allows the governing body of a taxing
unit, after conducting a public hearing, to provide for the continued taxation of such goods-in-
transit; and
WHEREAS, the City Council of the City of Wylie, Texas, having conducted a public
hearing as required by Section 1-n (d), Article VIII, Texas Constitution, is of the opinion that it is in
the best interests of the municipality to continue to tax such goods-in-transit;
NOW THEREFORE, BE IT ENACTED BY THE CITY COUNCIL OF THE CITY
OF WYLIE, TEXAS:
Section 1: That the goods-in-transit, as defined Tex. Tax Code 11.253 (a)(2), as amended
by House Bill 621, enacted by the 80th Texas Legislature in Regular Session, shall remain subject to
taxation by the City of Wylie, Texas.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
WYLIE, TEXAS on this 20th day of December, 2007.
John Mondy, Mayor
ATTEST:
Carole Ehrlich, City Secretary
APPROVED AS TO FORM:
Abernathy, Roeder, Boyd & Joplin, P.C.
Richard Abernathy, City Attorney
Ordinance No.2007-44
Allowing Taxation of Certain
Tangible Personal Property
Item #3 — Attachments
Not Available