Senate Bill 878

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.

Inventories Affected

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.


  • Provides a more reliable and uniform method for determining market value
  •  Eliminates audit problems (market value is readily verifiable)  
  • Provides automatic adjustment for inflation  
  • Provides a predictable revenue stream  
  • Maximizes owner's ability to manage inventory for marketing purposes.

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.


  •  Amount of delinquent taxes will decrease
  •  Provides a more efficient system of payment and audit  
  • Provides for itemized disclosure of tax value assigned to each vehicle
  • Eliminates inventory tax "shock" at year end.
General Information
Tax Assessor-Collector
Karen Fisher
Phone Numbers
(409) 882-7971
Emergencies: Dial 911
123 S. 6th Street