By Keffer H.B. No. 3352 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a credit against severance taxes for a person who 1-3 transfers ownership of a water supply pipeline to a political 1-4 subdivision of this state. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subtitle I, Title 2, Tax Code, is amended by 1-7 adding Chapter 205 to read as follows: 1-8 CHAPTER 205. TAX CREDIT FOR TRANSFER OF WATER SUPPLY PIPELINE 1-9 Sec. 205.001. TAX CREDIT. A person is eligible for a tax 1-10 credit applicable against the taxes imposed by Chapters 201 and 202 1-11 in the amount and under the conditions provided by this chapter. 1-12 Sec. 205.002. ELIGIBILITY. A person is eligible for a tax 1-13 credit under this chapter if the person owns a water supply 1-14 pipeline and transfers ownership of the pipeline to a political 1-15 subdivision of this state, including a county, municipality, or 1-16 district, for conjunctive use as a public water supply conveyance. 1-17 Sec. 205.003. AMOUNT OF CREDIT. The amount of the credit is 1-18 50 percent of the taxes imposed by Chapters 201 and 202 for the 1-19 period that the pipeline is used as a public water supply 1-20 conveyance. 1-21 Sec. 205.004. APPLICATION. (a) A person must apply to the 1-22 comptroller to qualify for the credit under this chapter. The 1-23 comptroller shall approve the application of person who 2-1 demonstrates eligibility for the credit. 2-2 (b) The comptroller may require a person applying for the 2-3 credit to provide any information the comptroller considers 2-4 necessary to determine if the person qualifies for the credit. 2-5 SECTION 2. This Act takes effect immediately if it receives a 2-6 vote of two-thirds of all the members elected to each house, as 2-7 provided by Section 39, Article III, Texas Constitution. If this 2-8 Act does not receive the vote necessary for immediate effect, this 2-9 Act takes effect September 1, 2001. 2-10 (b) This Act applies only to the transfer of ownership of a 2-11 water supply pipeline that takes place on or after the effective 2-12 date of this Act.