By: Guillen, Kacal, Ashby, Lopez of Cameron H.B. No. 3241
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exemption from ad valorem taxation of certain
  assets used for agricultural production and to the authority of a
  county commissioners court to adopt an exemption from ad valorem
  taxation by each taxing unit that taxes the property of the portion
  of the appraised value of a person's property that is attributable
  to the installation in or on the property of certain water
  conservation systems.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
  adding Section 11.162 to read as follows:
         Sec. 11.162.  FARM PRODUCTION INPUTS. (a) A producer is
  entitled to an exemption from taxation of any resources that the
  producer utilizes for the purpose of production.
         (b)  Farm production inputs in the hands of the producer are
  exempt.
         (c)  For purposes of this exemption, the following
  definitions apply:
               (1)  "Farm production inputs" include seeds, weaned
  animals, fertilizer, pesticides, feed, and any other resources that
  are necessary to produce crops, fruit, flowers, and other products
  of the soil or farm products as defined by Section 11.16.
               (2)  "In the hands of the producer" means under the
  ownership of the person who is utilizing farm production inputs
  such as seeds, weaned animals, fertilizer, pesticides, feed, and
  any resources necessary to begin production, on January 1 of the tax
  year, for the purpose of producing crops, fruits, flowers, and
  other products of the soil or farm products as defined by Section
  11.16.
         SECTION 2.  Subchapter B, Chapter 11, Tax Code, is amended by
  adding Section 11.325 to read as follows:
         Sec. 11.325.  WATER CONSERVATION SYSTEMS. (a) In this
  section, "graywater" has the meaning assigned by Section 341.039,
  Health and Safety Code.
         (b)  The commissioners court of a county by order may adopt
  an exemption from taxation of the portion of the appraised value of
  a person's property that is attributable to the installation in or
  on the property of a rainwater harvesting or graywater system. An
  exemption adopted by a commissioners court under this section
  applies to the taxation of property by each taxing unit that taxes
  the property.
         SECTION 3.  Section 11.325, Tax Code, as added by this Act,
  applies only to ad valorem taxes imposed for a tax year that begins
  on or after January 1, 2024.
         SECTION 4.  (a) Except as provided by Subsection (b) of this
  section, this Act takes effect September 1, 2023.
         (b)  Section 11.325, Tax Code, as added by this Act, takes
  effect January 1, 2024, but only if the constitutional amendment to
  authorize the commissioners court of a county to exempt from ad
  valorem taxation by each political subdivision that taxes the
  property the portion of the assessed value of a person's property
  that is attributable to the installation in or on the property of a
  rainwater harvesting or graywater system is approved by the voters.
  If that amendment is not approved by the voters, Section 11.325, Tax
  Code, as added by this Act, has no effect.