Texas House Bill HB1712

Texas 2013 - 83rd Regular

Caption

Relating to an exemption from ad valorem and sales and use taxes for property used in connection with an offshore spill response containment system.

Impact

The proposed legislation is expected to fortify environmental protection efforts by ensuring that necessary spill response equipment is financially feasible for companies operating in offshore oil and gas activities. This could lead to an increase in the availability of advanced response technologies and equipment, minimizing potential ecological harm from offshore drilling operations. By providing these tax incentives, the state aims to stimulate the local economy tied to spill response services, potentially creating jobs in that sector.

Summary

House Bill 1712 introduces amendments to the Texas Tax Code, specifically targeting tax exemptions related to offshore spill response containment systems. The bill is structured to exempt property used in these systems from both ad valorem taxes and sales and use taxes. The intent is to encourage the establishment and maintenance of effective spill response capabilities, particularly in regions close to the Gulf of Mexico, thereby enhancing the state's preparedness for oil spills and protecting marine environments.

Contention

While the bill's intentions are largely supported within the oil and gas industry and by some environmental advocates focusing on spill preparedness, there may be concerns about the implications of such tax exemptions. Critics could argue that tax breaks for the oil industry might lead to less scrutiny over operational safety measures. Moreover, the possibility exists that some stakeholders may view the legislation as an endorsement of offshore drilling activities at the expense of robust environmental policies. The balance between promoting economic development through the oil sector and ensuring environmental safeguards remains a point of potential debate.