1-1 By: Stiles, Earley, et al. H.B. No. 1920
1-2 (Senate Sponsor - Armbrister)
1-3 (In the Senate - Received from the House April 22, 1993;
1-4 April 26, 1993, read first time and referred to Committee on
1-5 Intergovernmental Relations; April 29, 1993, reported favorably, as
1-6 amended, by the following vote: Yeas 8, Nays 0; April 29, 1993,
1-7 sent to printer.)
1-8 COMMITTEE VOTE
1-9 Yea Nay PNV Absent
1-10 Armbrister x
1-11 Leedom x
1-12 Carriker x
1-13 Henderson x
1-14 Madla x
1-15 Moncrief x
1-16 Patterson x
1-17 Rosson x
1-18 Shapiro x
1-19 Wentworth x
1-20 Whitmire x
1-21 COMMITTEE AMENDMENT NO. 1 By: Armbrister
1-22 Amend H.B. 1920 as follows:
1-23 (1) In SECTION 1, on page 1, lines 11-13, delete the
1-24 sentence "The exemption shall be proportionate to the percentage of
1-25 property determined to be pollution control property under
1-26 Subsections (c) and (d)."
1-27 (2) In SECTION 1, on page 2, line 19, insert after the
1-28 period an additional sentence to read: "If the installation
1-29 includes property that is not used wholly for the control of air,
1-30 water, or land pollution, the person seeking the exemption shall
1-31 also present such financial or other data as the executive director
1-32 requires by rule for the determination of the proportion of the
1-33 installation that is pollution control property."
1-34 A BILL TO BE ENTITLED
1-35 AN ACT
1-36 relating to an exemption of certain pollution control property from
1-37 property taxation and adjustment of the property tax rollback rate.
1-38 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-39 SECTION 1. Chapter 11, Tax Code, is amended by adding
1-40 Section 11.31 to read as follows:
1-41 Sec. 11.31. POLLUTION CONTROL PROPERTY. (a) A person is
1-42 entitled to an exemption from taxation of all or part of real and
1-43 personal property that the person owns and that is used wholly or
1-44 partly as a facility, device, or method for the control of air,
1-45 water, or land pollution. The exemption shall be proportionate to
1-46 the percentage of property determined to be pollution control
1-47 property under Subsections (c) and (d). A person is not entitled
1-48 to an exemption from taxation under this section solely on the
1-49 basis that the person manufactures or produces a product that
1-50 prevents, monitors, controls, or reduces air, water, or land
1-51 pollution. Property used for residential purposes, or for
1-52 recreational, park, or scenic uses as defined by Section 23.81, is
1-53 ineligible for an exemption under this section.
1-54 (b) In this section, "facility, device, or method for the
1-55 control of air, water, or land pollution" means land that is
1-56 acquired after January 1, 1994, or any structure, building,
1-57 installation, excavation, machinery, equipment, or device, and any
1-58 attachment or addition to or reconstruction, replacement, or
1-59 improvement of that property, that is used, constructed, acquired,
1-60 or installed wholly or partly to meet or exceed rules or
1-61 regulations adopted by any environmental protection agency of the
1-62 United States, this state, or a political subdivision of this state
1-63 for the prevention, monitoring, control, or reduction of air,
1-64 water, or land pollution. This section does not apply to a motor
1-65 vehicle.
1-66 (c) In applying for an exemption under this section, a
1-67 person seeking the exemption shall present in a permit application
1-68 or permit exemption request to the executive director of the Texas
2-1 Natural Resource Conservation Commission information detailing:
2-2 (1) the anticipated environmental benefits from the
2-3 installation of the facility, device, or method for the control of
2-4 air, water, or land pollution;
2-5 (2) the estimated cost of the pollution control
2-6 facility, device, or method; and
2-7 (3) the purpose of the installation of such facility,
2-8 device, or method, and the proportion of the installation that is
2-9 pollution control property.
2-10 (d) Following submission of the information required by
2-11 Subsection (c), the executive director of the Texas Natural
2-12 Resource Conservation Commission shall determine if the facility,
2-13 device, or method is used wholly or partly as a facility, device,
2-14 or method for the control of air, water, or land pollution. As
2-15 soon as practicable, the executive director shall send notice by
2-16 regular mail to the chief appraiser of the appraisal district for
2-17 the county in which the property is located that the person has
2-18 applied for a determination under this subsection. If the
2-19 executive director determines that the facility, device, or method
2-20 is used wholly or partly to control pollution, the director shall
2-21 issue a letter to the person stating that determination and the
2-22 proportion of the installation that is pollution control property.
2-23 (e) The Texas Natural Resource Conservation Commission may
2-24 charge a person seeking a determination that property is pollution
2-25 control property an additional fee not to exceed its administrative
2-26 costs for processing the information, making the determination, and
2-27 issuing the letter required by this section. The commission may
2-28 adopt rules to implement this section.
2-29 (f) A person seeking an exemption under this section shall
2-30 provide to the chief appraiser a copy of the letter issued by the
2-31 executive director of the Texas Natural Resource Conservation
2-32 Commission under Subsection (d). The chief appraiser shall accept
2-33 the copy of the letter from the executive director as conclusive
2-34 evidence that the facility, device, or method is used wholly or
2-35 partly as pollution control property.
2-36 (g) This section does not apply to a facility, device, or
2-37 method for the control of air, water, or land pollution that was
2-38 subject to a tax abatement agreement executed before January 1,
2-39 1994.
2-40 SECTION 2. Section 11.43(c), Tax Code, is amended to read as
2-41 follows:
2-42 (c) An exemption provided by Section 11.13, 11.17, 11.18,
2-43 11.19, 11.20, 11.21, 11.22, 11.29, <or> 11.30, or 11.31 of this
2-44 code, once allowed, need not be claimed in subsequent years, and
2-45 except as otherwise provided by Subsection (e) of this section, the
2-46 exemption applies to the property until it changes ownership or the
2-47 person's qualification for the exemption changes. However, the
2-48 chief appraiser may require a person allowed one of the exemptions
2-49 in a prior year to file a new application to confirm his current
2-50 qualification for the exemption by delivering a written notice that
2-51 a new application is required, accompanied by an appropriate
2-52 application form, to the person previously allowed the exemption.
2-53 SECTION 3. Section 26.012(6), Tax Code, is amended to read
2-54 as follows:
2-55 (6) "Current total value" means the total taxable
2-56 value of property listed on the appraisal roll for the current
2-57 year, including all appraisal roll supplements and corrections as
2-58 of the date of the calculation, less the taxable value of property
2-59 exempted for the current tax year for the first time under Section
2-60 11.31, except that the current total value for a school district
2-61 excludes the total value of homesteads that qualify for a tax
2-62 limitation as provided by Section 11.26 <of this code>.
2-63 SECTION 4. Chapter 26, Tax Code, is amended by adding
2-64 Section 26.045 to read as follows:
2-65 Sec. 26.045. ROLLBACK RELIEF FOR POLLUTION CONTROL
2-66 REQUIREMENTS. (a) The rollback tax rate for a political
2-67 subdivision of this state is increased by the rate that, if applied
2-68 to the total current value, would impose an amount of taxes equal
2-69 to the amount the political subdivision will spend out of its
2-70 maintenance and operation funds under Section 26.012(16), Tax Code,
3-1 to pay for a facility, device, or method for the control of air,
3-2 water, or land pollution that is necessary to meet the requirements
3-3 of a permit issued by the Texas Natural Resource Conservation
3-4 Commission.
3-5 (b) In this section, "facility, device, or method for
3-6 control of air, water, or land pollution" means any land,
3-7 structure, building, installation, excavation, machinery,
3-8 equipment, or device, and any attachment or addition to or
3-9 reconstruction, replacement, or improvement of that property, that
3-10 is used, constructed, acquired, or installed wholly or partly to
3-11 meet or exceed rules or regulations adopted by any environmental
3-12 protection agency of the United States or this state for the
3-13 prevention, monitoring, control, or reduction of air, water, or
3-14 land pollution.
3-15 (c) To receive an adjustment to the rollback tax rate under
3-16 this section, a political subdivision shall present information to
3-17 the executive director of the Texas Natural Resource Conservation
3-18 Commission in a permit application or in a request for any
3-19 exemption from a permit that would otherwise be required detailing:
3-20 (1) the anticipated environmental benefits from the
3-21 installation of the facility, device, or method for the control of
3-22 air, water, or land pollution;
3-23 (2) the estimated cost of the pollution control
3-24 facility, device, or method; and
3-25 (3) the purpose of the installation of the facility,
3-26 device, or method, and the proportion of the installation that is
3-27 pollution control property.
3-28 (d) Following submission of the information required by
3-29 Subsection (c), the executive director of the Texas Natural
3-30 Resource Conservation Commission shall determine if the facility,
3-31 device, or method is used wholly or partly as a facility, device,
3-32 or method for the control of air, water, or land pollution. If the
3-33 executive director determines that the facility, device, or method
3-34 is used wholly or partly to control pollution, the director shall
3-35 issue a letter to the political subdivision stating that
3-36 determination and the portion of the cost of the installation that
3-37 is pollution control property.
3-38 (e) The Texas Natural Resource Conservation Commission may
3-39 charge a political subdivision seeking a determination that
3-40 property is pollution control property an additional fee not to
3-41 exceed its administrative costs for processing the information,
3-42 making the determination, and issuing the letter required by this
3-43 section. The commission may adopt rules to implement this section.
3-44 (f) A political subdivision of the state seeking an
3-45 adjustment in its rollback tax rate under this section shall
3-46 provide to its tax assessor a copy of the letter issued by the
3-47 executive director of the Texas Natural Resource Conservation
3-48 Commission under Subsection (d). The tax assessor shall accept the
3-49 copy of the letter from the executive director as conclusive
3-50 evidence that the facility, device, or method is used wholly or
3-51 partly as pollution control property and shall adjust the rollback
3-52 tax rate for the political subdivision as provided for by
3-53 Subsection (a).
3-54 SECTION 5. (a) Sections 1 and 2 of this Act take effect
3-55 January 1, 1994, but only if the constitutional amendment proposed
3-56 by the 73rd Legislature, Regular Session, 1993, authorizing the
3-57 exemption from ad valorem taxation of real and personal property
3-58 used for the control of air, water, or land pollution is approved
3-59 by the voters. If that amendment is not approved by the voters,
3-60 Sections 1 and 2 of this Act have no effect.
3-61 (b) Sections 1 and 2 of this Act apply only to pollution
3-62 control property that is constructed, acquired, or installed after
3-63 January 1, 1994.
3-64 (c) The change in law made by this Act does not affect a
3-65 contract executed prior to January 1, 1994, pursuant to Section
3-66 42.044 or Section 43.136, Local Government Code.
3-67 SECTION 6. The importance of this legislation and the
3-68 crowded condition of the calendars in both houses create an
3-69 emergency and an imperative public necessity that the
3-70 constitutional rule requiring bills to be read on three several
4-1 days in each house be suspended, and this rule is hereby suspended.
4-2 * * * * *
4-3 Austin,
4-4 Texas
4-5 April 29, 1993
4-6 Hon. Bob Bullock
4-7 President of the Senate
4-8 Sir:
4-9 We, your Committee on Intergovernmental Relations to which was
4-10 referred H.B. No. 1920, have had the same under consideration, and
4-11 I am instructed to report it back to the Senate with the
4-12 recommendation that it do pass, as amended, and be printed.
4-13 Armbrister,
4-14 Chairman
4-15 * * * * *
4-16 WITNESSES
4-17 FOR AGAINST ON
4-18 ___________________________________________________________________
4-19 Name: Russell B. Bridges x
4-20 Representing: 3 M Company
4-21 City: Austin
4-22 -------------------------------------------------------------------
4-23 Name: H. P. Whitworth x
4-24 Representing: Texas Chemical Council
4-25 City: Austin
4-26 -------------------------------------------------------------------
4-27 Name: Robert Howden x
4-28 Representing: National Fed. of Indep. Busin
4-29 City: Austin
4-30 -------------------------------------------------------------------
4-31 Name: Frank Sturzl x
4-32 Representing: TML
4-33 City: Austin
4-34 -------------------------------------------------------------------
4-35 Name: Randy Eminger x
4-36 Representing: AECT
4-37 City: Amarillo
4-38 -------------------------------------------------------------------
4-39 Name: Emmitt Shepard x
4-40 Representing: United Labor Leg. League
4-41 City: Austin
4-42 -------------------------------------------------------------------
4-43 Name: Paula Littles x
4-44 Representing: Oil Chemical
4-45 City: Austin
4-46 -------------------------------------------------------------------
4-47 Name: Chris Shields x
4-48 Representing: Texas Chamber of Commerce
4-49 City: Austin
4-50 -------------------------------------------------------------------
4-51 Name: Michael White x
4-52 Representing: Greater Houston Partnership
4-53 City: Houston
4-54 -------------------------------------------------------------------
4-55 Name: Billie Gonzales Mador x
4-56 Representing: Panhandle Eastern
4-57 City: Houston
4-58 -------------------------------------------------------------------
4-59 Name: Mary Miska x
4-60 Representing: TAB
4-61 City: Austin
4-62 -------------------------------------------------------------------
4-63 Name: Harold Reagan x
4-64 Representing: ALCOA
4-65 City: Rockdale
4-66 -------------------------------------------------------------------
4-67 FOR AGAINST ON
4-68 ___________________________________________________________________
4-69 Name: Bill Allaway x
4-70 Representing: Texas Assoc. Taxpayers
5-1 City: Austin
5-2 -------------------------------------------------------------------
5-3 Name: Richard A. Bennett x
5-4 Representing: Temple - Inland Forest
5-5 City: Dibol
5-6 -------------------------------------------------------------------
5-7 Name: Clinton P. White x
5-8 Representing: Txgulf Inc. & Koch Materials
5-9 City: Wharton
5-10 -------------------------------------------------------------------
5-11 Name: Benjamin Sebree x
5-12 Representing: Texas Mid-Contintent Oil & Gas
5-13 City: Austin
5-14 -------------------------------------------------------------------
5-15 Name: Jack Erskine x
5-16 Representing: AMOCO
5-17 City: Austin
5-18 -------------------------------------------------------------------
5-19 Name: Steve Perry x
5-20 Representing: Texaco, Inc
5-21 City: Austin
5-22 -------------------------------------------------------------------
5-23 Name: Floyd Bowen x
5-24 Representing: Exxon Corp.
5-25 City: Austin
5-26 -------------------------------------------------------------------
5-27 Name: P. Kinnan Grolemon x
5-28 Representing: Brown McCarrol
5-29 City: Austin
5-30 -------------------------------------------------------------------
5-31 Name: George H. Moff x
5-32 Representing: Nueces County Appraisal Dist.
5-33 City: Corpus Christi
5-34 -------------------------------------------------------------------