INTRODUCED
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HOUSE COMMITTEE
SUBSTITUTE
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SECTION 1. Section 11.31, Tax
Code, is amended by amending Subsections (a), (b), (c), (d), and (m) and
adding Subsections (o) and (p) to read as follows:
(a) A person is entitled to
an exemption from taxation of all or part of real and personal property
that the person owns and that is used wholly or partly as a facility,
device, or method for the control of air, water, or land pollution. A
person is not entitled to an exemption from taxation under this section
solely on the basis that the person manufactures or produces a product or
provides a service that prevents, monitors, controls, or reduces air,
water, or land pollution, except as provided in Subsection (o). Property
used for residential purposes, or for recreational, park, or scenic uses as
defined by Section 23.81, is ineligible for an exemption under this section.
(b) In this section,
"facility, device, or method for the control of air, water, or land
pollution" means land that is acquired after January 1, 1994, or any
structure, building, installation, excavation, machinery, equipment, or
device, and any attachment or addition to or reconstruction, replacement,
or improvement of that property, that is used, constructed, acquired, or
installed wholly or partly to meet or exceed rules or regulations adopted
by any environmental protection agency of the United States, this state, or
a political subdivision of this state for the prevention, monitoring,
control, or reduction of air, water, or land pollution and includes
property described in Subsection (o). In this section,
"pollution control property" includes property described in
Subsection (o). This section does not apply to a motor vehicle.
(c) In applying for an
exemption under this section, a person seeking the exemption shall present
in a permit application or permit exemption request to the executive
director of the Texas Commission on Environmental Quality information
detailing:
(1) the anticipated
environmental benefits from the installation of the facility, device, or
method for the control of air, water, or land pollution;
(2) the estimated cost of the
pollution control facility, device, or method; and
(3) the purpose of the
installation of such facility, device, or method, and the proportion of the
installation that is pollution control.
If the installation includes
property that is not used wholly for the control of air, water, or land
pollution or described in Subsection (o), the person seeking the
exemption shall also present such financial or other data as the executive
director requires by rule for the determination of the proportion of the
installation that is pollution control.
(d) Following submission of
the information required by Subsection (c), the executive director of the
Texas Commission on Environmental Quality shall determine if the facility,
device, or method is used wholly or partly as a facility, device, or method
for the control of air, water, or land pollution. As soon as practicable,
the executive director shall send notice by regular mail or by electronic
means to the chief appraiser of the appraisal district for the county in
which the property is located that the person has applied for a
determination under this subsection. The executive director shall issue a
letter to the person stating the executive director's determination of
whether the facility, device, or method is used wholly or partly to control
pollution or as property described in Subsection (o) and, if
applicable, the proportion of the property that is pollution control
property. The executive director shall send a copy of the letter by regular
mail or by electronic means to the chief appraiser of the appraisal
district for the county in which the property is located.
(m) Notwithstanding the other
provisions of this section, if the facility, device, or method for the
control of air, water, or land pollution described in an application for an
exemption under this section is a facility, device, or method included on
the list adopted under Subsection (k) or property described in
Subsection (o), the executive director of the Texas Commission on
Environmental Quality, not later than the 30th day after the date of
receipt of the information required by Subsections (c)(2) and (3) and
without regard to whether the information required by Subsection (c)(1) has
been submitted, shall determine that the facility, device, or method described
in the application is used wholly or partly as a facility, device, or
method for the control of air, water, or land pollution and shall take the
actions that are required by Subsection (d) in the event such a
determination is made.
(o) Notwithstanding any
other provision in this section, a person is entitled to an exemption from
taxation of all or part of real and personal property that the person owns
or leases and that is used, constructed, acquired, stored, or installed
primarily as part of an offshore spill response containment system. For
purposes of this section, property described in this subsection shall be
treated as used wholly as a facility, device, or method for the control of
air, water, or land pollution.
(p) In Subsection (o):
(1) "Offshore spill
response containment system" means:
(A) a containment system:
(i) for a response plan to
meet or exceed rules or regulations adopted by any environmental protection
agency of the United States, this state, or a political subdivision of this
state for the control, reduction, or monitoring of air, water, or land
pollution in the event of a blowout or loss of control of an offshore well
drilled or used for the exploration for or production of oil, gas, sulphur
or other minerals; and
(ii) having a design
capability to respond to a blowout or loss of control of such an offshore
well drilled in more than 5,000 feet of water; and
(B) real and personal
property used for the development, improvement, storage, deployment,
repair, maintenance, or testing of such containment system.
(2) "Environmental
protection agency of the United States" includes:
(A) the United States
Department of the Interior and agencies, bureaus, or other entities
established in the United States Department of the Interior, including the
Bureau of Safety and Environmental Enforcement and the Bureau of Ocean
Energy Management; and
(B) any other department,
agency, bureau, or entity of the United States that prescribes rules or
regulations described by Subsection (p)(1)(A)(i).
(3) "Rules or regulations
adopted by any environmental protection agency of the United States"
include Title 30, Code of Federal Regulations, Part 254, and any
corresponding provision or provisions of succeeding, similar, substitute,
proposed, or final federal regulations.
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No
equivalent provision, but see SECTION 1 below.
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No
equivalent provision, but see SECTION 1 above.
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SECTION 1. Section 11.271,
Tax Code, is amended to read as follows:
Sec. 11.271. OFFSHORE
DRILLING EQUIPMENT NOT IN USE. (a) In this section:
(1) "Environmental
protection agency of the United States" includes:
(A) the United States
Department of the Interior and any agency, bureau, or other entity
established in that department, including the Bureau of Safety and
Environmental Enforcement and the Bureau of Ocean Energy Management,
Regulation and Enforcement; and
(B) any other department,
agency, bureau, or entity of the United States that prescribes rules or
regulations described by Subdivision (2)(A).
(2) "Offshore spill
response containment system" means a marine or mobile containment
system that:
(A) is designed and used
or intended to be used solely to implement a response plan that meets or
exceeds rules or regulations adopted by any environmental protection agency
of the United States, this state, or a political subdivision of this state
for the control, reduction, or monitoring of air, water, or land pollution
in the event of a blowout or loss of control of an offshore well drilled or
used for the exploration for or production of oil or gas;
(B) has a design
capability to respond to a blowout or loss of control of an offshore well
drilled or used for the exploration for or production of oil or gas that is
drilled in more than 5,000 feet of water;
(C) is used or intended to
be used solely to respond to a blowout or loss of control of an offshore
well drilled or used for the exploration for or production of oil or gas
without regard to the depth of the water in which the well is drilled; and
(D) except for any
monitoring function for which the system may be used, is used or intended
to be used as a temporary measure to address fugitive oil, gas, sulfur, or
other minerals after a leak has occurred and is not used or intended to be
used after the leak has been contained as a continuing means of producing oil,
gas, sulfur, or other minerals.
(3) "Rules or
regulations adopted by any environmental protection agency of the United
States" includes 30 C.F.R. Part 254 and any corresponding provision or
provisions of succeeding, similar, substitute, proposed, or final federal
regulations.
(b) An owner or lessee
of a marine or mobile drilling unit designed for offshore drilling of oil
or gas wells is entitled to an exemption from taxation of the drilling unit
if the drilling unit:
(1) is being stored in a
county bordering on the Gulf of Mexico or on a bay or other body of water
immediately adjacent to the Gulf of Mexico;
(2) is not being stored for
the sole purpose of repair or maintenance; and
(3) is not being used to
drill a well at the location at which it is being stored.
(c) A person is entitled
to an exemption from taxation of the personal property the person owns or
leases that is used, constructed, acquired, stored, or installed solely as
part of an offshore spill response containment system, or that is used solely
for the development, improvement, storage, deployment, repair, maintenance,
or testing of such a system, if the system is being stored while not in use
in a county bordering on the Gulf of Mexico or on a bay or other body of
water immediately adjacent to the Gulf of Mexico. Property described by
this subsection and not used for any other purpose is considered to be
property used wholly as an integral part of mobile or marine drilling
equipment designed for offshore drilling of oil or gas wells.
(d) Subsection (c) does
not apply to personal property used, wholly or partly, for the exploration
for or production of oil, gas, sulfur, or other minerals, including the
equipment, piping, casing, and other components of an oil or gas well. For
purposes of this subsection, the offshore capture of fugitive oil, gas,
sulfur, or other minerals that is entirely incidental to the property's
temporary use as an offshore spill response containment system is not
considered to be production of those substances.
(e) Subsection (c) does
not apply to personal property that was used, constructed, acquired,
stored, or installed in this state on or before January 1, 2013.
(f) To qualify for an
exemption under Subsection (c), the person owning or leasing the property
must be an entity formed primarily for the purpose of designing,
developing, modifying, enhancing, assembling, operating, deploying, and
maintaining an offshore spill response containment system. A person may not
qualify for the exemption by providing services to or for an offshore spill
response containment system that the person does not own or lease.
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No
equivalent provision.
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SECTION 2. Section 11.43(c),
Tax Code, is amended to read as follows:
(c) An exemption provided by
Section 11.13, 11.131, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, 11.20,
11.21, 11.22, 11.23(h), (j), or (j-1), 11.231, 11.254, 11.271,
11.29, 11.30, or 11.31, once allowed, need not be claimed in subsequent
years, and except as otherwise provided by Subsection (e), the exemption
applies to the property until it changes ownership or the person's
qualification for the exemption changes. However, the chief appraiser may
require a person allowed one of the exemptions in a prior year to file a
new application to confirm the person's current qualification for the
exemption by delivering a written notice that a new application is
required, accompanied by an appropriate application form, to the person
previously allowed the exemption.
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SECTION 2. Chapter 151, Tax
Code, is amended by adding Section 151.356 to read as follows:
Sec. 151.356 OFFSHORE
SPILL RESPONSE AND WELL CONTAINMENT
PROPERTY.
(a) A person described in Section 11.31(o), Tax Code, is entitled to
an exemption from the taxes imposed by this chapter for the purchase, sale,
lease, rental, storage, use or consumption of property described in Section
11.31(o), Tax Code.
(b) A service performed on
property described in Section 11.31(o), Tax
Code, is exempted from the taxes imposed by this chapter.
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SECTION 3. Subchapter H, Chapter
151, Tax Code, is amended by adding Section 151.356 to read as follows:
Sec. 151.356. OFFSHORE
SPILL RESPONSE CONTAINMENT PROPERTY. (a) In
this section, "offshore spill response containment property"
means tangible personal property:
(1) described by Section 11.271(c);
(2) owned or leased by an entity described by Section 11.271(f); and
(3) used or intended to be used solely in an offshore spill response
containment system as defined by Section 11.271(a).
(b) This section does not apply to an item used, wholly or partly,
for the exploration for or production of oil, gas, sulfur, or other
minerals, including the equipment, piping, casing, and other components of
an oil or gas well. For purposes of this subsection, the offshore capture
of fugitive oil, gas, sulfur, or other minerals that is entirely incidental
to the item's temporary use as an offshore spill response containment
system is not considered to be production of those substances.
(c) The sale, lease, rental, storage, use, or other consumption by an
entity described by Section 11.271(f) of offshore spill response
containment property used solely for the purposes described by Section
11.271(c) and this section is exempted from the taxes imposed by this
chapter.
(d) A service performed exclusively on offshore
spill response containment property is exempted from the taxes
imposed by this chapter.
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No
equivalent provision.
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SECTION 4. Section 11.271,
Tax Code, as amended by this Act, applies only to an ad valorem tax year
that begins on or after the effective date of this Act.
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No
equivalent provision.
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SECTION 5. Section 151.356,
Tax Code, as added by this Act, does not affect tax liability accruing
before the effective date of this Act. That liability continues in effect
as if this Act had not been enacted, and the former law is continued in
effect for the collection of taxes due and for civil and criminal
enforcement of the liability for those taxes.
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SECTION 3. This Act takes
effect immediately if it receives a vote of two-thirds of all the members elected
to each house, as provided by Section 39, Article III, Texas Constitution. If
this Act does not receive the vote necessary for immediate effect, this Act
takes effect September 1, 2013.
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SECTION 6. Same as introduced
version.
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