By: Dunnam H.B. No. 3965
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation for certain
property used to control pollution.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.31, Tax Code, is amended by amending
Subsections (a), (c), and (k) and adding Subsection (a-1) to read as
follows:
(a) A person is entitled to an exemption from taxation of
all or part of real and personal property that the person owns and
that is used wholly or partly as a facility, device, or method for
the control of air, water, or land pollution. Except as provided by
Subsection (a-1), a [A] person is not entitled to an exemption from
taxation under this section solely on the basis that the person
manufactures or produces a product or provides a service that
prevents, monitors, controls, or reduces air, water, or land
pollution. Property used for residential purposes, or for
recreational, park, or scenic uses as defined by Section 23.81, is
ineligible for an exemption under this section.
(a-1) A person is entitled to an exemption from taxation
under this section solely on the basis that the person manufactures
or produces a product or provides a service that prevents,
monitors, controls, or reduces air, water, or land pollution if:
(1) the person installs and uses the product, or
provides the service, under a contract or other agreement with a
governmental entity to capture and convert waste, including gas,
from public property; and
(2) the person:
(A) processes and delivers the waste to a common
carrier to displace a natural resource; or
(B) processes and converts the waste to
electrical or other useful energy and provides the energy to the
governmental entity.
(c) In applying for an exemption under this section, a
person seeking the exemption shall present in a permit application
or permit exemption request to the executive director of the Texas
Natural Resource Conservation Commission information detailing:
(1) the anticipated environmental benefits from the
installation of the facility, device, or method for the control of
air, water, or land pollution;
(2) the estimated cost of the pollution control
facility, device, or method; and
(3) the purpose of the installation of such facility,
device, or method, and the proportion of the installation that is
pollution control property.
(c-1) If the installation includes property that is not used
wholly for the control of air, water, or land pollution, the person
seeking the exemption shall also present such financial or other
data as the executive director requires by rule for the
determination of the proportion of the installation that is
pollution control property. This subsection does not apply to a
product, service, or installation that is exempt under Subsection
(a-1).
(k) The Texas Commission on Environmental Quality shall
adopt rules establishing a nonexclusive list of facilities,
devices, or methods for the control of air, water, or land
pollution, which must include:
(19) a product, service, equipment, or installation
exempt under Subsection (a-1).
SECTION 2. This Act takes applies only to an ad valorem tax
year that begins on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2010.