What is S.B.878?
S.B. 878 is a bill passed by the Texas Legislature in 1993. It is effective on January 1, 1994. S.B. 878 amends Section 23.12 and adds Sections 23.12A and 23.12B, Property Tax Code.
The new system affects the ad valorem tax appraisal of, and the prepayment of ad valorem taxes levied against, inventories consisting of vehicles.
How are these inventories affected?
Method of Appraisal: The bill provides for a new sales-based method of determining the market value of a vehicle inventory held for resale.
Method of Payment: The bill provides a procedure for monthly prepayment of taxes by the owner through an escrow mechanism administered by the county tax assessor-collector.