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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 for certain |
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property used to control pollution. |
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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 (a), (c), and (k) and adding Subsection (a-1) to read as |
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follows: |
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(a) A person is entitled to an exemption from taxation of |
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all or part of real and personal property that the person owns and |
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that is used wholly or partly as a facility, device, or method for |
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the control of air, water, or land pollution. Except as provided by |
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Subsection (a-1), a [A] person is not entitled to an exemption from |
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taxation under this section solely on the basis that the person |
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manufactures or produces a product or provides a service that |
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prevents, monitors, controls, or reduces air, water, or land |
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pollution. Property used for residential purposes, or for |
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recreational, park, or scenic uses as defined by Section 23.81, is |
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ineligible for an exemption under this section. |
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(a-1) A person is entitled to an exemption from taxation |
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under this section solely on the basis that the person manufactures |
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or produces a product or provides a service that prevents, |
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monitors, controls, or reduces air, water, or land pollution if: |
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(1) the person installs and uses the product, or |
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provides the service, under a contract or other agreement with a |
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governmental entity to capture and convert waste, including gas, |
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from public property; and |
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(2) the person: |
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(A) processes and delivers the waste to a common |
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carrier to displace a natural resource; or |
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(B) processes and converts the waste to |
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electrical or other useful energy and provides the energy to the |
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governmental entity. |
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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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Natural Resource Conservation 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. This subsection does not apply to a |
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product, service, or installation that is exempt under Subsection |
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(a-1). |
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(k) The Texas Commission on Environmental Quality shall |
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adopt rules establishing a nonexclusive list of facilities, |
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devices, or methods for the control of air, water, or land |
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pollution, which must include: |
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(19) a product, service, equipment, or installation |
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exempt under Subsection (a-1). |
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SECTION 2. This Act takes applies only to an ad valorem tax |
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year that begins on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2010. |