Texas 2023 - 88th Regular

Texas Senate Bill SB2526

Filed
3/10/23  
Out of Senate Committee
5/11/23  
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the appraisal for ad valorem tax purposes of real property used as a municipal solid waste facility or the buffer zone of such a facility.

Impact

The passage of SB2526 is anticipated to influence state tax laws significantly, particularly those regarding property taxes associated with municipal solid waste facilities. By mandating that appraisals ignore intangible assets, the law aims to reduce the financial burden on facility operators and ensure that they are taxed only on the actual physical properties they own. This move is expected to mitigate disputes over property valuations and enhance the financial sustainability of waste management operations across the state.

Summary

Senate Bill 2526 aims to revise the appraisal methods for real property designated as municipal solid waste facilities and their surrounding buffer zones, specifically ensuring that intangible property values are excluded from these appraisals. The bill stipulates that appraisal districts must utilize the market data comparison method to assess the value of landfill properties, which will prevent double taxation on the intangible assets that may be associated with the ownership and operation of landfills. This clarification is meant to provide more accurate assessments that reflect current market values, promoting fairness among landfill operations in Texas.

Sentiment

The sentiment surrounding SB2526 is largely supportive, especially among stakeholders in the waste management industry. Proponents of the bill, including property tax attorneys and representatives from disposal systems firms, have voiced strong backing, arguing that it addresses longstanding issues of fairness in property taxation. No opposition was recorded during voting, indicating a general consensus on the bill's necessity for making taxation more equitable for solid waste facility owners.

Contention

While SB2526 received unanimous support, the discussions brought attention to the complexities surrounding property appraisals in the context of waste management. Some industry experts highlighted potential concerns over how market values are determined, particularly in relation to fluctuating closure costs and the need for transparent evaluation processes. These considerations underscore an ongoing dialogue about the balance between appropriate tax levels for business viability and maintaining public accountability in environmental operations.

Texas Constitutional Statutes Affected

Tax Code

  • Chapter 23. Appraisal Methods And Procedures
    • Section: New Section
    • Section: New Section
    • Section: New Section

Companion Bills

TX HB3795

Very Similar Relating to the appraisal and ad valorem taxation of Type 1 Municipal Solid Waste Landfills.

Similar Bills

No similar bills found.