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A BILL TO BE ENTITLED
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AN ACT
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relating to the implementation of the exemption from ad valorem |
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taxation for pollution control property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.31, Tax Code, is amended by amending |
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Subsections (c), (d), (g), and (m) and adding Subsections (c-1) and |
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(n) to read as follows: |
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(c) In applying for an exemption under this section, a |
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person seeking the exemption shall present in a permit application |
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or permit exemption request to the executive director of the Texas |
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Commission on Environmental Quality [Natural Resource Conservation
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Commission] information detailing: |
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(1) the anticipated environmental benefits from the |
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installation of the facility, device, or method for the control of |
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air, water, or land pollution; |
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(2) the estimated cost of the pollution control |
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facility, device, or method; and |
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(3) the purpose of the installation of such facility, |
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device, or method, and the proportion of the installation that is |
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pollution control property. |
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(c-1) If the installation includes property that is not used |
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wholly for the control of air, water, or land pollution, the person |
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seeking the exemption shall also present such financial or other |
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data as the executive director requires by rule for the |
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determination of the proportion of the installation that is |
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pollution control property. |
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(d) Following submission of the information required by |
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Subsection (c) and, if applicable, Subsection (c-1), the executive |
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director of the Texas Commission on Environmental Quality [Natural
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Resource Conservation Commission] shall determine if the facility, |
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device, or method is used wholly or partly as a facility, device, or |
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method for the control of air, water, or land pollution. As soon as |
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practicable, the executive director shall send notice by regular |
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mail to the chief appraiser of the appraisal district for the county |
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in which the property is located that the person has applied for a |
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determination under this subsection. The executive director shall |
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issue a letter to the person stating the executive director's |
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determination of whether the facility, device, or method is used |
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wholly or partly to control pollution and, if applicable, the |
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proportion of the property that is pollution control property. The |
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executive director shall send a copy of the letter by regular mail |
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to the chief appraiser of the appraisal district for the county in |
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which the property is located. |
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(g) The commission shall adopt rules to implement this |
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section. Rules adopted under this section must: |
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(1) establish specific standards for considering |
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applications for determinations; |
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(2) be sufficiently specific to ensure that |
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determinations are equal and uniform; and |
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(3) provide a method that allows [allow] for |
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determinations that distinguish the proportion of property that is |
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used to control, monitor, prevent, or reduce pollution from the |
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proportion of property that is used to produce goods or services. |
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(m) Notwithstanding the other provisions of this section, |
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if the facility, device, or method for the control of air, water, or |
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land pollution described in an application for an exemption under |
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this section is a facility, device, or method included on the list |
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adopted under Subsection (k), the executive director of the Texas |
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Commission on Environmental Quality, not later than the 30th day |
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after the date of receipt of the information required by Subsection |
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(c) and, if applicable, Subsection (c-1) [Subsections (c)(2) and
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(3) and without regard to whether the information required by
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Subsection (c)(1) has been submitted], shall determine that the |
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facility, device, or method described in the application is used |
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wholly or partly as a facility, device, or method for the control of |
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air, water, or land pollution and shall take the actions that are |
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required by Subsection (d) in the event such a determination is |
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made, including issuing a letter to the applicant stating the |
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proportion of the property that is pollution control property if |
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the property is not used wholly to control pollution. Rules adopted |
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by the commission under this section may permit the applicant to |
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base the applicant's statement under Subsection (c)(3) of the |
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proportion of the property that is pollution control property on a |
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method selected by the applicant. If in accordance with such rules |
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the applicant bases the applicant's statement on a method selected |
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by the applicant, the executive director shall calculate the |
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proportion of the property that is pollution control property on |
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the basis of the method selected by the applicant and on the basis |
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of the method the commission has adopted by rule under this section. |
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The executive director shall then determine the proportion of the |
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property that is pollution control property on the basis of the |
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method that results in the lower proportion of the property being |
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determined to be pollution control property. |
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(n) The Texas Commission on Environmental Quality shall |
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establish a permanent advisory committee consisting of |
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representatives of industry, appraisal districts, taxing units, |
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and environmental groups to advise the commission regarding the |
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implementation of this section. Chapter 2110, Government Code, |
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does not apply to the size, composition, or duration of the advisory |
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committee. |
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SECTION 2. Section 11.43, Tax Code, is amended by adding |
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Subsection (n) to read as follows: |
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(n) Notwithstanding Subsection (c), a person who received |
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an exemption under Section 11.31 in the 2009 tax year for a |
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facility, device, or method included on the list adopted under |
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Section 11.31(k) may not receive the exemption in the 2010 tax year |
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unless the person files a new application for the exemption in |
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accordance with Subsection (d). The proportion of the property |
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that is pollution control property shall be determined in |
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accordance with the amendment to Section 11.31(m) by the 81st |
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Legislature, Regular Session, 2009, and rules adopted by the Texas |
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Commission on Environmental Quality in accordance with that |
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amendment. This subsection expires January 1, 2011. |
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SECTION 3. As soon as practicable after the effective date |
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of this Act, the Texas Commission on Environmental Quality shall: |
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(1) adopt rules as necessary to implement Section |
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11.31(m), Tax Code, as amended by this Act; and |
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(2) appoint the initial members of the advisory |
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committee under Section 11.31(n), Tax Code, as added by this Act. |
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SECTION 4. Section 11.31(m), Tax Code, as amended by this |
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Act, applies only to ad valorem taxes imposed for a tax year |
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beginning on or after January 1, 2010. |
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SECTION 5. This Act takes effect September 1, 2009. |