| 1 | 1 | | 84R13204 GRM-F |
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| 2 | 2 | | By: King of Uvalde H.B. No. 3719 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to an exemption from the sales tax for certain |
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| 8 | 8 | | water-conserving products for a limited period. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
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| 11 | 11 | | by adding Section 151.3336 to read as follows: |
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| 12 | 12 | | Sec. 151.3336. WATER-CONSERVING PRODUCTS. (a) In this |
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| 13 | 13 | | section, "water-conserving product": |
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| 14 | 14 | | (1) means tangible personal property that: |
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| 15 | 15 | | (A) is used on private residential property and |
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| 16 | 16 | | is not used for business or trade; and |
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| 17 | 17 | | (B) when used or planted in an outdoor |
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| 18 | 18 | | residential property, may result in: |
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| 19 | 19 | | (i) water conservation or groundwater |
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| 20 | 20 | | retention; |
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| 21 | 21 | | (ii) water table recharge; or |
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| 22 | 22 | | (iii) a decrease in ambient air temperature |
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| 23 | 23 | | that limits water evaporation; and |
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| 24 | 24 | | (2) includes: |
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| 25 | 25 | | (A) a drought-tolerant live plant, including |
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| 26 | 26 | | turf and grass; |
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| 27 | 27 | | (B) a soaker or drip-irrigation hose; |
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| 28 | 28 | | (C) a moisture control for a sprinkler or |
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| 29 | 29 | | irrigation system; |
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| 30 | 30 | | (D) mulch and soil; |
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| 31 | 31 | | (E) a rain barrel or an alternative rain and |
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| 32 | 32 | | moisture collection system; |
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| 33 | 33 | | (F) a permeable ground cover surface that allows |
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| 34 | 34 | | water to reach underground basins, aquifers, or water collection |
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| 35 | 35 | | points; |
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| 36 | 36 | | (G) plant and grass seeds coated with a |
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| 37 | 37 | | water-saving surfactant; and |
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| 38 | 38 | | (H) a water saving surfactant. |
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| 39 | 39 | | (b) The sale of a water-conserving product is exempted from |
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| 40 | 40 | | the taxes imposed by this chapter if the sale takes place during a |
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| 41 | 41 | | period beginning at 12:01 a.m. on March 1 and ending at 11:59 p.m. |
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| 42 | 42 | | on March 8. |
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| 43 | 43 | | (c) The comptroller may adopt rules to implement this |
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| 44 | 44 | | section. |
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| 45 | 45 | | (d) The comptroller shall include in the report to the |
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| 46 | 46 | | legislature required by Section 403.014, Government Code, a report |
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| 47 | 47 | | on the effect of the exemption under this section. The report must |
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| 48 | 48 | | include: |
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| 49 | 49 | | (1) the amount by which taxes imposed under this |
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| 50 | 50 | | chapter were reduced as a result of the exemption under this |
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| 51 | 51 | | section; and |
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| 52 | 52 | | (2) an analysis of the effect of the exemption on water |
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| 53 | 53 | | conservation efforts in this state. |
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| 54 | 54 | | SECTION 2. This Act takes effect September 1, 2015. |
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