By Stiles, Earley, et al. H.B. No. 1920
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to an exemption of certain pollution control property from
1-3 property taxation and adjustment of the property tax rollback rate.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 11, Tax Code, is amended by adding
1-6 Section 11.31 to read as follows:
1-7 Sec. 11.31. POLLUTION CONTROL PROPERTY. (a) A person is
1-8 entitled to an exemption from taxation of all or part of real and
1-9 personal property that the person owns and that is used wholly or
1-10 partly as a facility, device, or method for the control of air,
1-11 water, or land pollution. The exemption shall be proportionate to
1-12 the percentage of property determined to be pollution control
1-13 property under Subsections (c) and (d). A person is not entitled
1-14 to an exemption from taxation under this section solely on the
1-15 basis that the person manufactures or produces a product that
1-16 prevents, monitors, controls, or reduces air, water, or land
1-17 pollution. Property used for residential purposes, or for
1-18 recreational, park, or scenic uses as defined by Section 23.81, is
1-19 ineligible for an exemption under this section.
1-20 (b) In this section, "facility, device, or method for the
1-21 control of air, water, or land pollution" means land that is
1-22 acquired after January 1, 1994, or any structure, building,
1-23 installation, excavation, machinery, equipment, or device, and any
1-24 attachment or addition to or reconstruction, replacement, or
2-1 improvement of that property, that is used, constructed, acquired,
2-2 or installed wholly or partly to meet or exceed rules or
2-3 regulations adopted by any environmental protection agency of the
2-4 United States, this state, or a political subdivision of this state
2-5 for the prevention, monitoring, control, or reduction of air,
2-6 water, or land pollution. This section does not apply to a motor
2-7 vehicle.
2-8 (c) In applying for an exemption under this section, a
2-9 person seeking the exemption shall present in a permit application
2-10 or permit exemption request to the executive director of the Texas
2-11 Natural Resource Conservation Commission information detailing:
2-12 (1) the anticipated environmental benefits from the
2-13 installation of the facility, device, or method for the control of
2-14 air, water, or land pollution;
2-15 (2) the estimated cost of the pollution control
2-16 facility, device, or method; and
2-17 (3) the purpose of the installation of such facility,
2-18 device, or method, and the proportion of the installation that is
2-19 pollution control property.
2-20 (d) Following submission of the information required by
2-21 Subsection (c), the executive director of the Texas Natural
2-22 Resource Conservation Commission shall determine if the facility,
2-23 device, or method is used wholly or partly as a facility, device,
2-24 or method for the control of air, water, or land pollution. As
2-25 soon as practicable, the executive director shall send notice by
2-26 regular mail to the chief appraiser of the appraisal district for
2-27 the county in which the property is located that the person has
3-1 applied for a determination under this subsection. If the
3-2 executive director determines that the facility, device, or method
3-3 is used wholly or partly to control pollution, the director shall
3-4 issue a letter to the person stating that determination and the
3-5 proportion of the installation that is pollution control property.
3-6 (e) The Texas Natural Resource Conservation Commission may
3-7 charge a person seeking a determination that property is pollution
3-8 control property an additional fee not to exceed its administrative
3-9 costs for processing the information, making the determination, and
3-10 issuing the letter required by this section. The commission may
3-11 adopt rules to implement this section.
3-12 (f) A person seeking an exemption under this section shall
3-13 provide to the chief appraiser a copy of the letter issued by the
3-14 executive director of the Texas Natural Resource Conservation
3-15 Commission under Subsection (d). The chief appraiser shall accept
3-16 the copy of the letter from the executive director as conclusive
3-17 evidence that the facility, device, or method is used wholly or
3-18 partly as pollution control property.
3-19 (g) This section does not apply to a facility, device, or
3-20 method for the control of air, water, or land pollution that was
3-21 subject to a tax abatement agreement executed before January 1,
3-22 1994.
3-23 SECTION 2. Section 11.43(c), Tax Code, is amended to read as
3-24 follows:
3-25 (c) An exemption provided by Section 11.13, 11.17, 11.18,
3-26 11.19, 11.20, 11.21, 11.22, 11.29, <or> 11.30, or 11.31 of this
3-27 code, once allowed, need not be claimed in subsequent years, and
4-1 except as otherwise provided by Subsection (e) of this section, the
4-2 exemption applies to the property until it changes ownership or the
4-3 person's qualification for the exemption changes. However, the
4-4 chief appraiser may require a person allowed one of the exemptions
4-5 in a prior year to file a new application to confirm his current
4-6 qualification for the exemption by delivering a written notice that
4-7 a new application is required, accompanied by an appropriate
4-8 application form, to the person previously allowed the exemption.
4-9 SECTION 3. Section 26.012(6), Tax Code, is amended to read
4-10 as follows:
4-11 (6) "Current total value" means the total taxable
4-12 value of property listed on the appraisal roll for the current
4-13 year, including all appraisal roll supplements and corrections as
4-14 of the date of the calculation, less the taxable value of property
4-15 exempted for the current tax year for the first time under Section
4-16 11.31, except that the current total value for a school district
4-17 excludes the total value of homesteads that qualify for a tax
4-18 limitation as provided by Section 11.26 <of this code>.
4-19 SECTION 4. Chapter 26, Tax Code, is amended by adding
4-20 Section 26.045 to read as follows:
4-21 Sec. 26.045. ROLLBACK RELIEF FOR POLLUTION CONTROL
4-22 REQUIREMENTS. (a) The rollback tax rate for a political
4-23 subdivision of this state is increased by the rate that, if applied
4-24 to the total current value, would impose an amount of taxes equal
4-25 to the amount the political subdivision will spend out of its
4-26 maintenance and operation funds under Section 26.012(16), Tax Code,
4-27 to pay for a facility, device, or method for the control of air,
5-1 water, or land pollution that is necessary to meet the requirements
5-2 of a permit issued by the Texas Natural Resource Conservation
5-3 Commission.
5-4 (b) In this section, "facility, device, or method for
5-5 control of air, water, or land pollution" means any land,
5-6 structure, building, installation, excavation, machinery,
5-7 equipment, or device, and any attachment or addition to or
5-8 reconstruction, replacement, or improvement of that property, that
5-9 is used, constructed, acquired, or installed wholly or partly to
5-10 meet or exceed rules or regulations adopted by any environmental
5-11 protection agency of the United States or this state for the
5-12 prevention, monitoring, control, or reduction of air, water, or
5-13 land pollution.
5-14 (c) To receive an adjustment to the rollback tax rate under
5-15 this section, a political subdivision shall present information to
5-16 the executive director of the Texas Natural Resource Conservation
5-17 Commission in a permit application or in a request for any
5-18 exemption from a permit that would otherwise be required detailing:
5-19 (1) the anticipated environmental benefits from the
5-20 installation of the facility, device, or method for the control of
5-21 air, water, or land pollution;
5-22 (2) the estimated cost of the pollution control
5-23 facility, device, or method; and
5-24 (3) the purpose of the installation of the facility,
5-25 device, or method, and the proportion of the installation that is
5-26 pollution control property.
5-27 (d) Following submission of the information required by
6-1 Subsection (c), the executive director of the Texas Natural
6-2 Resource Conservation Commission shall determine if the facility,
6-3 device, or method is used wholly or partly as a facility, device,
6-4 or method for the control of air, water, or land pollution. If the
6-5 executive director determines that the facility, device, or method
6-6 is used wholly or partly to control pollution, the director shall
6-7 issue a letter to the political subdivision stating that
6-8 determination and the portion of the cost of the installation that
6-9 is pollution control property.
6-10 (e) The Texas Natural Resource Conservation Commission may
6-11 charge a political subdivision seeking a determination that
6-12 property is pollution control property an additional fee not to
6-13 exceed its administrative costs for processing the information,
6-14 making the determination, and issuing the letter required by this
6-15 section. The commission may adopt rules to implement this section.
6-16 (f) A political subdivision of the state seeking an
6-17 adjustment in its rollback tax rate under this section shall
6-18 provide to its tax assessor a copy of the letter issued by the
6-19 executive director of the Texas Natural Resource Conservation
6-20 Commission under Subsection (d). The tax assessor shall accept the
6-21 copy of the letter from the executive director as conclusive
6-22 evidence that the facility, device, or method is used wholly or
6-23 partly as pollution control property and shall adjust the rollback
6-24 tax rate for the political subdivision as provided for by
6-25 Subsection (a).
6-26 SECTION 5. (a) Sections 1 and 2 of this Act take effect
6-27 January 1, 1994, but only if the constitutional amendment proposed
7-1 by the 73rd Legislature, Regular Session, 1993, authorizing the
7-2 exemption from ad valorem taxation of real and personal property
7-3 used for the control of air, water, or land pollution is approved
7-4 by the voters. If that amendment is not approved by the voters,
7-5 Sections 1 and 2 of this Act have no effect.
7-6 (b) Sections 1 and 2 of this Act apply only to pollution
7-7 control property that is constructed, acquired, or installed after
7-8 January 1, 1994.
7-9 (c) The change in law made by this Act does not affect a
7-10 contract executed prior to January 1, 1994, pursuant to Section
7-11 42.044 or Section 43.136, Local Government Code.
7-12 SECTION 6. The importance of this legislation and the
7-13 crowded condition of the calendars in both houses create an
7-14 emergency and an imperative public necessity that the
7-15 constitutional rule requiring bills to be read on three several
7-16 days in each house be suspended, and this rule is hereby suspended.