81R5818 SMH-D
By: Leibowitz H.B. No. 1751
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from ad valorem taxation of a renewable
energy device, structure, facility, or system installed or
constructed on residential property, land designated for
agricultural use, or open-space land devoted to farm or ranch
purposes for the generation of energy for use in connection with the
property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.34 to read as follows:
Sec. 11.34. RENEWABLE ENERGY DEVICE, STRUCTURE, FACILITY,
OR SYSTEM INSTALLED ON RESIDENTIAL PROPERTY OR AGRICULTURAL LAND.
(a) In this section, "renewable energy device, structure, facility,
or system" means:
(1) a device, structure, facility, or system that
generates electricity using energy derived from:
(A) solar power;
(B) wind power;
(C) a fuel cell;
(D) methane gas from a landfill;
(E) ocean thermal power;
(F) wave or tidal power;
(G) a low emission advanced renewable energy
conversion technology;
(H) hydropower, provided that the facility:
(i) is a run-of-the-river hydropower
facility;
(ii) has a generating capacity of not more
than five megawatts; and
(iii) does not cause an appreciable change
in the river flow; or
(I) biomass, provided that the facility:
(i) is a sustainable biomass facility;
(ii) has an average emission rate of not
more than 0.075 pounds of nitrogen oxides per million British
thermal units of heat input; and
(iii) has a capacity of less than 500
kilowatts;
(2) a passive or active solar water or space heating
system; or
(3) a system that relies on energy derived directly
from geothermal energy.
(b) A person is entitled to an exemption from taxation of
the amount of the appraised value of a single-family residential
property, a multifamily residential property consisting of not more
than four dwelling units, or land appraised as provided by
Subchapter C, Chapter 23, or by Subchapter D of that chapter, other
than as timberland or wildlife management land, that the person
owns that arises from the installation or construction on the
property of a renewable energy device, structure, facility, or
system if:
(1) the installation or construction of the device,
structure, facility, or system began on or after October 1, 2007;
and
(2) the energy generated by the device, structure,
facility, or system is used in connection with the property.
(c) The comptroller, with the assistance of the State Energy
Conservation Office or its successor, shall develop guidelines to
assist local officials in the administration of this section.
SECTION 2. Section 11.43, Tax Code, is amended by amending
Subsection (c) and adding Subsection (n) to read as follows:
(c) An exemption provided by Section 11.13, 11.17, 11.18,
11.182, 11.183, 11.19, 11.20, 11.21, 11.22, 11.23(h), (j), or
(j-1), 11.29, 11.30, [or] 11.31, or 11.34, once allowed, need not be
claimed in subsequent years, and except as otherwise provided by
Subsection (e), the exemption applies to the property until it
changes ownership or the person's qualification for the exemption
changes. However, the chief appraiser may require a person allowed
one of the exemptions in a prior year to file a new application to
confirm the person's current qualification for the exemption by
delivering a written notice that a new application is required,
accompanied by an appropriate application form, to the person
previously allowed the exemption.
(n) Notwithstanding Subsection (c), if a person who
receives an exemption provided by Section 11.34 modifies the
renewable energy device, structure, facility, or system for which
the exemption is allowed in a manner for which a building permit is
required, the person must reapply for the exemption in the manner
provided by this section in order to continue receiving the
exemption. If the exemption is allowed, the exemption need not be
claimed in subsequent years and, except as otherwise provided by
this section, applies to the property until it changes ownership or
the person's qualification for the exemption changes.
SECTION 3. As soon as practicable after the effective date
of this Act, the comptroller, with the assistance of the State
Energy Conservation Office, shall develop the guidelines required
by Section 11.34, Tax Code, as added by this Act.
SECTION 4. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 5. This Act takes effect January 1, 2010, but only
if the constitutional amendment to authorize the legislature to
exempt from ad valorem taxation a renewable energy device,
structure, facility, or system installed or constructed on
residential property, land designated for agricultural use, or
open-space land devoted to farm or ranch purposes for the
generation of energy for use in connection with the property is
approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.