Texas House Bill HB186

Texas 2021 - 87th Regular

Caption

Relating to an exemption from ad valorem 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 certain water conservation systems.

Impact

If enacted, HB186 would amend the state's Tax Code to include provisions for these exemptions, effectively lowering the tax liabilities for property owners who invest in water conservation technologies. This policy is expected to foster greater investment in water-saving systems, which, in turn, could lead to improved water quality and reduced fiscal pressure on local governments through decreased water demand. The bill is applicable from January 1, 2022, but is contingent upon the approval of a constitutional amendment by the voters, which is necessary for the exemption to take effect.

Summary

House Bill 186 entitles property owners in Texas to an exemption from ad valorem taxation for the portion of their property's appraised value that can be attributed to the installation of certain water conservation systems, specifically rainwater harvesting and graywater systems. This bill aims to encourage the adoption of sustainable water management practices among residents, promoting environmental responsibility and conservation efforts. The targeted systems are integral to reducing water consumption and enhancing the efficiency of water use in residential properties.

Contention

Noteworthy points of contention surrounding HB186 may revolve around the financial implications for local governments, which could experience reduced revenue from property taxes as a result of these exemptions. Critics might argue that while promoting water conservation is vital, the implications for local budgets need careful consideration, particularly in areas that are already financially constrained. The necessity of the constitutional amendment also introduces a layer of complexity, as public support for the amendment may vary, potentially impacting the bill's implementation.