73R7719 JD-F
By Stiles, Earley, et al. H.B. No. 1920
Substitute the following for H.B. No. 1920:
By Craddick C.S.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).
1-14 (b) In this section, "facility, device, or method for the
1-15 control of air, water, or land pollution" means land that is
1-16 acquired after January 1, 1994, or any structure, building,
1-17 installation, excavation, machinery, equipment, or device, and any
1-18 attachment or addition to or reconstruction, replacement, or
1-19 improvement of that property, that is used, constructed, acquired,
1-20 or installed wholly or partly to meet or exceed rules or
1-21 regulations adopted by any environmental protection agency of the
1-22 United States, this state, or a political subdivision of this state
1-23 for the prevention, monitoring, control, or reduction of air,
1-24 water, or land pollution.
2-1 (c) In applying for an exemption under this section, a
2-2 person seeking the exemption shall present in a permit application
2-3 or permit exemption request to the executive director of the Texas
2-4 Natural Resource Conservation Commission information detailing:
2-5 (1) the anticipated environmental benefits from the
2-6 installation of the facility, device, or method for the control of
2-7 air, water, or land pollution;
2-8 (2) the estimated cost of the pollution control
2-9 facility, device, or method; and
2-10 (3) the purpose of the installation of such facility,
2-11 device, or method, and the proportion of the installation that is
2-12 pollution control property.
2-13 (d) Following submission of the information required by
2-14 Subsection (c), the executive director of the Texas Natural
2-15 Resource Conservation Commission shall determine if the facility,
2-16 device, or method is used wholly or partly as a facility, device,
2-17 or method for the control of air, water, or land pollution. If the
2-18 executive director determines that the facility, device, or method
2-19 is used wholly or partly to control pollution, the director shall
2-20 issue a letter to the person stating that determination and the
2-21 proportion of the installation that is pollution control property.
2-22 (e) The Texas Natural Resource Conservation Commission may
2-23 charge a person seeking a determination that property is pollution
2-24 control property an additional fee not to exceed its administrative
2-25 costs for processing the information, making the determination, and
2-26 issuing the letter required by this section. The commission may
2-27 adopt rules to implement this section.
3-1 (f) A person seeking an exemption under this section shall
3-2 provide to the chief appraiser a copy of the letter issued by the
3-3 executive director of the Texas Natural Resource Conservation
3-4 Commission under Subsection (d). The chief appraiser shall accept
3-5 the copy of the letter from the executive director as conclusive
3-6 evidence that the facility, device, or method is used wholly or
3-7 partly as pollution control property.
3-8 SECTION 2. Section 11.43(c), Tax Code, is amended to read as
3-9 follows:
3-10 (c) An exemption provided by Section 11.13, 11.17, 11.18,
3-11 11.19, 11.20, 11.21, 11.22, 11.29, <or> 11.30, or 11.31 of this
3-12 code, once allowed, need not be claimed in subsequent years, and
3-13 except as otherwise provided by Subsection (e) of this section, the
3-14 exemption applies to the property until it changes ownership or the
3-15 person's qualification for the exemption changes. However, the
3-16 chief appraiser may require a person allowed one of the exemptions
3-17 in a prior year to file a new application to confirm his current
3-18 qualification for the exemption by delivering a written notice that
3-19 a new application is required, accompanied by an appropriate
3-20 application form, to the person previously allowed the exemption.
3-21 SECTION 3. Chapter 26, Tax Code, is amended by adding
3-22 Section 26.045 to read as follows:
3-23 Sec. 26.045. ROLLBACK RELIEF FOR POLLUTION CONTROL
3-24 REQUIREMENTS. (a) The rollback tax rate for a political
3-25 subdivision of this state is increased by the rate that, if applied
3-26 to the total current value, would impose an amount of taxes equal
3-27 to the amount the political subdivision will spend out of its
4-1 maintenance and operation funds under Section 26.012(16), Tax Code,
4-2 to pay for a facility, device, or method for the control of air,
4-3 water, or land pollution that is necessary to meet the requirements
4-4 of a permit issued by the Texas Natural Resource Conservation
4-5 Commission.
4-6 (b) In this section, "facility, device, or method for
4-7 control of air, water, or land pollution" means any land,
4-8 structure, building, installation, excavation, machinery,
4-9 equipment, or device, and any attachment or addition to or
4-10 reconstruction, replacement, or improvement of that property, that
4-11 is used, constructed, acquired, or installed wholly or partly to
4-12 meet or exceed rules or regulations adopted by any environmental
4-13 protection agency of the United States or this state for the
4-14 prevention, monitoring, control, or reduction of air, water, or
4-15 land pollution.
4-16 (c) To receive an adjustment to the rollback tax rate under
4-17 this section, a political subdivision shall present information to
4-18 the executive director of the Texas Natural Resource Conservation
4-19 Commission in a permit application or in a request for any
4-20 exemption from a permit that would otherwise be required detailing:
4-21 (1) the anticipated environmental benefits from the
4-22 installation of the facility, device, or method for the control of
4-23 air, water, or land pollution;
4-24 (2) the estimated cost of the pollution control
4-25 facility, device, or method; and
4-26 (3) the purpose of the installation of the facility,
4-27 device, or method, and the proportion of the installation that is
5-1 pollution control property.
5-2 (d) Following submission of the information required by
5-3 Subsection (c), the executive director of the Texas Natural
5-4 Resource Conservation Commission shall determine if the facility,
5-5 device, or method is used wholly or partly as a facility, device,
5-6 or method for the control of air, water, or land pollution. If the
5-7 executive director determines that the facility, device, or method
5-8 is used wholly or partly to control pollution, the director shall
5-9 issue a letter to the political subdivision stating that
5-10 determination and the portion of the cost of the installation that
5-11 is pollution control property.
5-12 (e) The Texas Natural Resource Conservation Commission may
5-13 charge a political subdivision seeking a determination that
5-14 property is pollution control property an additional fee not to
5-15 exceed its administrative costs for processing the information,
5-16 making the determination, and issuing the letter required by this
5-17 section. The commission may adopt rules to implement this section.
5-18 (f) A political subdivision of the state seeking a reduction
5-19 in its rollback tax rate under this section shall provide to its
5-20 tax assessor a copy of the letter issued by the executive director
5-21 of the Texas Natural Resource Conservation Commission under
5-22 Subsection (d). The tax assessor shall accept the copy of the
5-23 letter from the executive director as conclusive evidence that the
5-24 facility, device, or method is used wholly or partly as pollution
5-25 control property and shall adjust the rollback tax rate for the
5-26 political subdivision as provided for by Subsection (a).
5-27 SECTION 4. (a) Sections 1 and 2 of this Act take effect
6-1 January 1, 1994, but only if the constitutional amendment proposed
6-2 by the 73rd Legislature, Regular Session, 1993, authorizing the
6-3 exemption from ad valorem taxation of real and personal property
6-4 used for the control of air, water, or land pollution is approved
6-5 by the voters. If that amendment is not approved by the voters,
6-6 Sections 1 and 2 of this Act have no effect.
6-7 (b) Sections 1 and 2 of this Act apply only to pollution
6-8 control property that is constructed, acquired, or installed after
6-9 January 1, 1994.
6-10 SECTION 5. The importance of this legislation and the
6-11 crowded condition of the calendars in both houses create an
6-12 emergency and an imperative public necessity that the
6-13 constitutional rule requiring bills to be read on three several
6-14 days in each house be suspended, and this rule is hereby suspended.