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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption from ad valorem taxation of a portion of |
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the appraised value of real and tangible personal property used for |
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the production, storage, distribution, or wholesale or retail sale |
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of carbon-free hydrogen. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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adding Section 11.34 to read as follows: |
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Sec. 11.34. CARBON-FREE HYDROGEN PROPERTY. (a) A person is |
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entitled to an exemption from taxation of 25 percent of the |
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appraised value of real and tangible personal property that the |
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person owns and that is used for the production, storage, |
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distribution, or wholesale or retail sale of carbon-free hydrogen. |
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(b) To be eligible for an exemption under Subsection (a), |
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the carbon-free hydrogen must qualify under Section 1-p, Article |
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VIII, Texas Constitution. |
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(c) For purposes of Subsection (a), pipelines and vehicles |
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are included in the meaning of property used for the distribution of |
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carbon-free hydrogen. |
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(d) This section does not apply to real or tangible personal |
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property that is or was subject to a tax abatement agreement |
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executed before January 1, 2008. |
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(e) The comptroller shall develop guidelines to assist |
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local officials in the administration of this section. |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2008, but only |
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if 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 is approved by the |
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voters. If that amendment is not approved by the voters, this Act |
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has no effect. |