BILL ANALYSIS

H.B. 4713

By: Miller, Doug

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The Cow Creek Groundwater Conservation District currently levies a property tax of one-half of one cent which generates about $175,000. The district is required to implement a difficult and costly tax relief program for retail public utilities that includes exemptions of such small monetary value that the cost of calculating and implementing the program would be far greater than the exemption, additionally, the program would not promote groundwater conservation.

H.B. 4713 removes the requirement that the Cow Creek Groundwater Conservation District implement a tax relief program for retail public utilities and authorizes, rather than requires, the district to offer tax exemptions on property on which a water conservation initiative is implemented.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 4713 amends Sections 3.0111(f) and (h), Chapter 966, Acts of the 77th Legislature, Regular Session, 2001, and Sections 11 (f) and (i), Chapter 1349, Acts of the 77th Legislature, Regular Session, 2001, to authorize, rather than require, the Cow Creek Groundwater Conservation District to adopt rules providing for granting exemptions from property taxes on property on which a water conservation initiative has been implemented. The bill repeals provisions that require the district to grant an exemption or relief from property taxes on property served by a retail public utility based on certain conditions. The bill makes its provision applicable to property taxes imposed by the district for a tax year beginning on or after January 1, 2010.  

H.B. 4713 repeals Section 3.0111(g), Chapter 966, Acts of the 77th Legislature, Regular Session, 2001, and Sections 11(g) and (h), Chapter 1349, Acts of the 77th Legislature, Regular Session, 2001.

EFFECTIVE DATE

On passage, or, if the act does not receive the necessary vote, the act takes effect September 1, 2009.