78R3482 SMJ-F

By:  Campbell                                                     H.B. No. 632



A BILL TO BE ENTITLED

AN ACT

relating to the application of the sales tax to certain irrigation 
systems. 
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter H, Chapter 151, Tax Code, is amended 
by adding Section 151.3161 to read as follows:
	Sec. 151.3161.  CERTAIN IRRIGATION SYSTEMS.  (a)  In this 
section, "irrigation system" has the meaning assigned by Section 
34.001, Water Code.
	(b)  This section does not apply to a component of an 
irrigation system that is exempted under Section 151.316 or 
151.3162 from the taxes imposed by this chapter.
	(c)  The sale of an irrigation system or a component of an 
irrigation system is exempted from the taxes imposed by this 
chapter if the system or component meets standards for efficiency 
adopted by the comptroller.
	(d)  The comptroller shall adopt efficiency standards under 
this section in cooperation with the Texas Commission on 
Environmental Quality.  The standards must include requirements for 
an irrigation system and its components that promote the efficient 
use of water.  The requirements may include specifications 
regarding:
		(1)  system valves, circuits, and sprinkler heads;                     
		(2)  water pressure regulation;                                        
		(3)  programmable controllers for the system;                          
		(4)  rain shut-off switches and sensors for wind and 
freeze; and     
		(5)  soil depth coverage.                                              
	SECTION 2.  (a)  This Act takes effect October 1, 2003.                        
	(b)  The change in law made by this Act does not affect taxes 
imposed before the effective date of this Act, and the law in effect 
before the effective date of this Act is continued in effect for the 
purposes of the liability for and collection of those taxes.