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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption from ad valorem taxation of certain |
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assets used for agricultural production and to the authority of a |
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county commissioners court to adopt an exemption from ad valorem |
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taxation by each taxing unit that taxes the property of the portion |
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of the appraised value of a person's property that is attributable |
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to the installation in or on the property of certain water |
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conservation systems. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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adding Section 11.162 to read as follows: |
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Sec. 11.162. FARM PRODUCTION INPUTS. (a) A producer is |
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entitled to an exemption from taxation of any resources that the |
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producer utilizes for the purpose of production. |
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(b) Farm production inputs in the hands of the producer are |
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exempt. |
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(c) For purposes of this exemption, the following |
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definitions apply: |
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(1) "Farm production inputs" include seeds, weaned |
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animals, fertilizer, pesticides, feed, and any other resources that |
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are necessary to produce crops, fruit, flowers, and other products |
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of the soil or farm products as defined by Section 11.16. |
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(2) "In the hands of the producer" means under the |
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ownership of the person who is utilizing farm production inputs |
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such as seeds, weaned animals, fertilizer, pesticides, feed, and |
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any resources necessary to begin production, on January 1 of the tax |
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year, for the purpose of producing crops, fruits, flowers, and |
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other products of the soil or farm products as defined by Section |
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11.16. |
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SECTION 2. Subchapter B, Chapter 11, Tax Code, is amended by |
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adding Section 11.325 to read as follows: |
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Sec. 11.325. WATER CONSERVATION SYSTEMS. (a) In this |
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section, "graywater" has the meaning assigned by Section 341.039, |
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Health and Safety Code. |
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(b) The commissioners court of a county by order may adopt |
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an exemption from taxation of the portion of the appraised value of |
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a person's property that is attributable to the installation in or |
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on the property of a rainwater harvesting or graywater system. An |
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exemption adopted by a commissioners court under this section |
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applies to the taxation of property by each taxing unit that taxes |
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the property. |
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SECTION 3. Section 11.325, Tax Code, as added by this Act, |
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applies only to ad valorem taxes imposed for a tax year that begins |
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on or after January 1, 2024. |
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SECTION 4. (a) Except as provided by Subsection (b) of this |
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section, this Act takes effect September 1, 2023. |
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(b) Section 11.325, Tax Code, as added by this Act, takes |
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effect January 1, 2024, but only if the constitutional amendment to |
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authorize the commissioners court of a county to exempt from ad |
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valorem taxation by each political subdivision that taxes the |
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property the portion of the assessed value of a person's property |
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that is attributable to the installation in or on the property of a |
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rainwater harvesting or graywater system is approved by the voters. |
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If that amendment is not approved by the voters, Section 11.325, Tax |
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Code, as added by this Act, has no effect. |