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.