Texas House Bill HB1173

Texas 2013 - 83rd Regular

Caption

Relating to a local option exemption from ad valorem taxation of the portion of the appraised value of a person's property that is attributable to the installation on the property of certain water conservation systems.

Impact

The implementation of HB 1173 could have significant implications for state taxation laws, particularly as it relates to how local taxing entities can adjust their tax structures in favor of environmental initiatives. Local governments would have greater latitude to incentivize water conservation by lessening the tax impact on certain property improvements related to these environmentally friendly systems. This could lead to increased installation of such systems statewide, promoting overall water conservation efforts, particularly in regions affected by drought or water scarcity.

Summary

House Bill 1173 is designed to provide a local option exemption from ad valorem taxation concerning the appraised value of property that is enhanced by the installation of specific water conservation systems. The bill adds a new section to the Texas Tax Code, permitting local governing bodies to exempt from taxation the portion of property value attributed to either drip irrigation systems or rainwater harvesting systems. In doing so, it aims to encourage the adoption of sustainable water conservation practices among property owners by lessening their financial burdens related to property taxes.

Contention

While the bill champions water conservation, there may be points of contention among stakeholders regarding its potential fiscal impact on local revenue. Some may argue that providing these tax exemptions could result in decreased funding for essential local services that rely on property tax revenue. Moreover, concerns may arise around the fairness of tax exemptions; some stakeholders may contend that not all property owners can afford to invest in these conservation technologies, potentially leading to inequities in tax burdens among various property owners. The balance between encouraging environmental efforts and maintaining necessary public funding will be a key area of debate.