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A BILL TO BE ENTITLED
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AN ACT
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relating to an exemption from sales and use taxes for certain |
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tangible personal property used in hydraulic fracturing. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.355, Tax Code, is amended to read as |
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follows: |
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Sec. 151.355. WATER-RELATED EXEMPTIONS. (a) The following |
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are exempted from taxes imposed by this chapter: |
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(1) rainwater harvesting equipment or supplies, water |
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recycling and reuse equipment or supplies, or other equipment, |
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services, or supplies used solely to reduce or eliminate water use; |
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(2) equipment, services, or supplies used solely for |
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desalination of surface water or groundwater; |
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(3) equipment, services, or supplies used solely for |
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brush control designed to enhance the availability of water; |
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(4) equipment, services, or supplies used solely for |
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precipitation enhancement; |
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(5) equipment, services, or supplies used solely to |
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construct or operate a water or wastewater system certified by the |
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Texas Commission on Environmental Quality as a regional system; |
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(6) equipment, services, or supplies used solely to |
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construct or operate a water supply or wastewater system by a |
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private entity as a public-private partnership as certified by the |
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political subdivision that is a party to the project; and |
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(7) tangible personal property specifically used to |
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process, reuse, or recycle water, other than freshwater, |
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[wastewater] that will be used in fracturing work performed at an |
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oil or gas well. |
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(b) For the purposes of this section, "freshwater" means |
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water containing less than 1,000 milligrams per liter of total |
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dissolved solids. |
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SECTION 2. Section 151.355, Tax Code, as amended by this |
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Act, does not affect tax liability accruing before the effective |
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date of this Act. That liability continues in effect as if this Act |
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had not been enacted, and the former law is continued in effect for |
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the collection of taxes due and for civil and criminal enforcement |
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of the liability for those taxes. |
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SECTION 3. This Act takes effect September 1, 2025. |