SRC-JXG S.B. 1773 76(R) BILL ANALYSIS Senate Research Center S.B. 1773 76R8356 JD-DBy: Zaffirini Finance 4/9/1999 As Filed DIGEST In 1993, voters approved Proposition 2 to provide property tax exemptions to individuals, companies, and political subdivisions required to make capital investments to comply with federal, state, or local environmental laws and regulations. These entities may submit a tax exemption request to the Texas Natural Resource Conservation Commission (TNRCC) for pollution control equipment already in use. If TNRCC approves the request, appraisal districts must issue property tax exemptions for values that may have been on the tax rolls for years, and on which schools and other taxing entities based their budgets. S.B. 1773 would require certain entities applying for a pollution control equipment tax exemption to submit a tax exemption request to the TNRCC before the equipment is used. PURPOSE As proposed, S.B. 1773 requires certain entities applying after March, 2000, for a property tax exemption for pollution control equipment, to submit a tax exemption request to the Texas Natural Resource Conservation Commission before the equipment is used. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sections 11.31(c)-(g), Tax Code, to provide that a person is eligible for an exemption under this section for property initially placed into use as a facility, device, or method for the control of air, water, or land pollution on or after March 1, 2000, only if the person complies with Subsection (d) before the person begins to use the property as a facility, device, or method for the control of air, water, or land pollution. Makes conforming and nonsubstantive changes. SECTION 2. Effective date: January 1, 2000. Makes application of this Act prospective. SECTION 3. Emergency clause.