Texas House Bill HJR6

Texas 2023 - 88th 1st C.S.

• Filed: 5/30/23

Caption

Proposing a 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.

Impact

If enacted, HJR6 would amend Article VIII of the Texas Constitution by adding Section 1-u, providing counties with the authority to grant such exemptions through general law. This amendment is expected to impact property tax collections at both the county and local levels by reducing the taxable assessed value of properties equipped with rainwater harvesting and graywater systems. The legislation anticipates fostering a shift toward more environmentally conscious practices among residents, leading to potential long-term benefits in water conservation and management within the state.

Summary

HJR6 proposes a constitutional amendment aimed at allowing the commissioners court of a county to exempt from ad valorem taxation the part of a property's assessed value that corresponds to the installation of rainwater harvesting or graywater systems. This legislative initiative seeks to incentivize water conservation practices among property owners in Texas, thereby promoting environmentally sustainable approaches to managing water resources. By facilitating tax exemptions for these green installations, the bill aims to lower the financial barrier for homeowners considering these options, ultimately contributing to water resource management statewide.

Sentiment

The general sentiment surrounding HJR6 appears positive among environmental advocates and property owners interested in sustainable practices. Supporters argue that the bill will encourage broader adoption of water-saving technologies, which is particularly vital in an era of increasing water scarcity. However, there may be reservations from local governments regarding the potential impact on their tax revenues, as property tax exemptions could lead to reduced funding for essential public services, thus sparking a nuanced discussion on the balance between environmental incentives and fiscal responsibility.

Contention

Notable points of contention may arise surrounding the criteria for eligibility for these tax exemptions as well as the extent of their financial impact on local taxation systems. There is likely to be debate regarding how this amendment will interact with existing tax laws and whether it will create unintended consequences, such as disparities in benefits among different counties. Stakeholders will need to address questions surrounding the criteria for what constitutes qualifying installations and how local officials can implement these changes without exacerbating fiscal stress on existing municipal budgets.