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A JOINT RESOLUTION
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proposing a constitutional amendment to exempt from ad valorem |
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taxation 25 percent of the assessed value of real and tangible |
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personal property used for the production, storage, distribution, |
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or wholesale or retail sale of carbon-free hydrogen. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Article VIII, Texas Constitution, is amended by |
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adding Section 1-p to read as follows: |
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Sec. 1-p. (a) Twenty-five percent (25%) of the assessed |
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value of real and tangible personal property used for the |
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production, storage, distribution, or wholesale or retail sale of |
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carbon-free hydrogen is exempt from ad valorem taxation. |
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(b) For purposes of this section, hydrogen is considered to |
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be carbon-free if: |
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(1) any carbon resulting from the production of the |
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hydrogen is captured during production and: |
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(A) permanently geologically sequestered; or |
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(B) used in the production of other carbon-based |
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products at a rate that exceeds 90 percent of the input; and |
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(2) any carbon resulting from the generation of any |
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electricity used in the production of the hydrogen is captured and: |
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(A) permanently geologically sequestered; or |
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(B) used in the production of other carbon-based |
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products at a rate that exceeds 90 percent of the input. |
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(c) For purposes of Subsection (b), the generation of wind |
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power, solar power, hydroelectricity, geothermal electricity, |
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tidal electricity, or nuclear power is considered to result in no |
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carbon. |
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(d) This section does not exempt from ad valorem taxation |
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real or tangible personal property that is or was subject to a tax |
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abatement agreement executed before January 1, 2008. |
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(e) The legislature by general law may prescribe |
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procedures, including application requirements, for the |
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administration of exemptions under this section. |
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SECTION 2. The following temporary provision is added to |
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the Texas Constitution: |
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TEMPORARY PROVISION. (a) This temporary provision applies |
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to the constitutional amendment proposed by the 80th Legislature, |
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Regular Session, 2007, to exempt from ad valorem taxation 25 |
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percent of the assessed value of real and tangible personal |
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property used for the production, storage, distribution, or |
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wholesale or retail sale of carbon-free hydrogen. |
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(b) Section 1-p, Article VIII, of this constitution takes |
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effect beginning with the tax year that begins January 1, 2008. |
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(c) This temporary provision expires January 1, 2009. |
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SECTION 3. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 6, 2007. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment to stimulate economic |
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development and reduce greenhouse gases by exempting from ad |
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valorem taxation 25 percent of the assessed value of real and |
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personal property used for the production, storage, distribution, |
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or wholesale or retail sale of carbon-free hydrogen." |