Definition & Meaning
The 50-113 Application for Exemption of Goods Exported from Texas, commonly referred to as the 50-113 form, is an official document used to claim a property tax exemption for 'freeport goods' under the Texas Constitution and Tax Code. 'Freeport goods' refer to inventories that are held temporarily in Texas who are eventually exported out of the state within 175 days. The exemption aims to reduce the property tax burden on businesses involved in interstate commerce by recognizing the temporary nature of such goods in Texas.
Steps to Complete the 50-113 Application
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Identify Eligible Goods: Ensure that the goods qualify as 'freeport goods' eligible for exemption. They must be tangible personal property destined for shipping outside Texas within the stipulated period.
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Gather Inventory Details: Collect precise information about inventory levels and the frequency with which goods are transported out of the state. Document the movement of goods carefully to support your application.
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Fill Out Applicant Information: Provide the name, address, and contact details of the business entity applying for the exemption. Include Employer Identification Number (EIN) for verification purposes.
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Detail Goods Documentation: Itemize the goods for which you are claiming an exemption, accompanied by the dates of receipt at the Texas location and dates scheduled for export.
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Provide Transportation Proof: Attach documentation that demonstrates the transportation of goods out of Texas, such as bills of lading, shipping receipts, or freight details.
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Submit the Form: Deliver the completed form to the local appraisal district office by the April 30 deadline annually. Be sure to keep a copy of the completed form for your records.
Eligibility Criteria
- Nature of Goods: The goods must be held temporarily in Texas and be destined for transportation outside the state within a time frame of 175 days.
- Ownership: The entity applying for the exemption must be the legal owner of the goods.
- Commercial Intent: Goods are primarily held for purpose of assembling, storing, manufacturing, processing, or fabricating in the state before being exported.
Filing Deadlines / Important Dates
- Annual Submission: The 50-113 form must be filed each year by April 30 to receive the exemption for that tax year.
- Inventory Data Date: Details about inventory held as of January 1 of the current year must be accurately represented.
Required Documents
- Inventory Logs: Maintain detailed logs showing quantities and types of inventory you are claiming exemptions for.
- Transport Records: Include documentation of goods leaving the state, such as invoices or manifest records.
- Travel Itineraries: If applicable, provide itineraries or checkpoints along the transportation route as evidence of goods being moved outside Texas.
Form Submission Methods
- In-Person: Deliver the completed form to the local appraisal district office physically to ensure immediate receipt.
- Mail: Alternatively, you may mail the form to the appropriate office with a request for acknowledgment of receipt if needed.
Penalties for Non-Compliance
Failure to submit the form by the deadline or providing incorrect information can result in the denial of the tax exemption, effectively increasing the taxable value of held inventory. Additionally, intentional misrepresentation may lead to audits or penalties as per the Tax Code.
Key Elements of the 50-113 Form
- Contact Information: Accurate business contact details are necessary to facilitate communication and processing.
- Goods Description: Detailed documentation about the inventory in question, including types, quantities, and value.
- Compliance Certification: Certify honesty and completeness of the information under penalty of law to finalize the submission.
Who Typically Uses the 50-113 Form?
- International Shippers: Firms engaged in exporting goods from Texas benefit substantially from this exemption.
- Manufacturers: Businesses temporarily holding goods in process or awaiting final assembly welcome this tax relief.
- Distributors: Warehouses and logistics companies that manage inventories temporarily within Texas for onward shipment frequently apply using this form.
This comprehensive guide aims to equip businesses with the essential knowledge to correctly understand and utilize the 50-113 form for 'freeport goods' tax exemption claims.
