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A BILL TO BE ENTITLED
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AN ACT
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relating to exemptions from property taxation and sales and use |
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taxation for certain offshore spill response and well containment |
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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), (b), (c), (d), and (m) and adding Subsections (o) |
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and (p) to read as 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. A person is not |
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entitled to an exemption from taxation under this section solely on |
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the basis that the person manufactures or produces a product or |
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provides a service that prevents, monitors, controls, or reduces |
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air, water, or land pollution, except as provided in Subsection |
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(o). Property used for residential purposes, or for recreational, |
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park, or scenic uses as defined by Section 23.81, is ineligible for |
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an exemption under this section. |
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(b) In this section, "facility, device, or method for the |
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control of air, water, or land pollution" means land that is |
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acquired after January 1, 1994, or any structure, building, |
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installation, excavation, machinery, equipment, or device, and any |
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attachment or addition to or reconstruction, replacement, or |
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improvement of that property, that is used, constructed, acquired, |
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or installed wholly or partly to meet or exceed rules or regulations |
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adopted by any environmental protection agency of the United |
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States, this state, or a political subdivision of this state for the |
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prevention, monitoring, control, or reduction of air, water, or |
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land pollution and includes property described in Subsection (o). |
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In this section, "pollution control property" includes property |
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described in Subsection (o). This section does not apply to a motor |
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vehicle. |
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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 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. |
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If the installation includes property that is not used wholly |
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for the control of air, water, or land pollution or described in |
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Subsection (o), the person seeking the exemption shall also present |
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such financial or other data as the executive director requires by |
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rule for the determination of the proportion of the installation |
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that is pollution control. |
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(d) Following submission of the information required by |
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Subsection (c), the executive director of the Texas Commission on |
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Environmental Quality shall determine if the facility, device, or |
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method is used wholly or partly as a facility, device, or method for |
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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 or by electronic means to the chief appraiser of the appraisal |
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district for the county in which the property is located that the |
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person has applied for a determination under this subsection. The |
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executive director shall issue a letter to the person stating the |
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executive director's determination of whether the facility, |
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device, or method is used wholly or partly to control pollution or |
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as property described in Subsection (o) 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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or by electronic means to the chief appraiser of the appraisal |
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district for the county in which the property is located. |
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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) or property described in Subsection |
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(o), the executive director of the Texas Commission on |
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Environmental Quality, not later than the 30th day after the date of |
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receipt of the information required by Subsections (c)(2) and (3) |
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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. |
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(o) Notwithstanding any other provision in this section, a |
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person is entitled to an exemption from taxation of all or part of |
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real and personal property that the person owns or leases and that |
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is used, constructed, acquired, stored, or installed primarily as |
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part of an offshore spill response containment system. For |
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purposes of this section, property described in this subsection |
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shall be treated as used wholly as a facility, device, or method for |
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the control of air, water, or land pollution. |
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(p) In Subsection (o): |
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(1) "Offshore spill response containment system" |
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means: |
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(A) a containment system: |
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(i) for a response plan to meet or exceed |
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rules or regulations adopted by any environmental protection agency |
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of the United States, this state, or a political subdivision of this |
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state for the control, reduction, or monitoring of air, water, or |
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land pollution in the event of a blowout or loss of control of an |
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offshore well drilled or used for the exploration for or production |
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of oil, gas, sulphur or other minerals; and |
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(ii) having a design capability to respond |
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to a blowout or loss of control of such an offshore well drilled in |
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more than 5,000 feet of water; and |
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(B) real and personal property used for the |
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development, improvement, storage, deployment, repair, |
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maintenance, or testing of such containment system. |
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(2) "Environmental protection agency of the United |
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States" includes: |
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(A) the United States Department of the Interior |
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and agencies, bureaus, or other entities established in the United |
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States Department of the Interior, including the Bureau of Safety |
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and Environmental Enforcement and the Bureau of Ocean Energy |
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Management; and |
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(B) any other department, agency, bureau, or |
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entity of the United States that prescribes rules or regulations |
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described by Subsection (p)(1)(A)(i). |
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(3) "Rules or regulations adopted by any environmental |
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protection agency of the United States" include Title 30, Code of |
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Federal Regulations, Part 254, and any corresponding provision or |
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provisions of succeeding, similar, substitute, proposed, or final |
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federal regulations. |
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SECTION 2. Chapter 151, Tax Code, is amended by adding |
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Section 151.356 to read as follows: |
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Sec. 151.356 OFFSHORE SPILL RESPONSE AND WELL CONTAINMENT |
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PROPERTY. (a) A person described in Section 11.31(o), Tax Code, is |
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entitled to an exemption from the taxes imposed by this chapter for |
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the purchase, sale, lease, rental, storage, use or consumption of |
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property described in Section 11.31(o), Tax Code. |
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(b) A service performed on property described in Section |
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11.31(o), Tax Code, is exempted from the taxes imposed by this |
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chapter. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |