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.