| 1 | 1 | | By: Seliger S.B. No. 1983 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the exemption from ad valorem taxation of pollution |
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| 7 | 7 | | control property. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 11.31, Tax Code, is amended by amending |
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| 10 | 10 | | Subsection (k)(16) and (m) and adding Subsections (m-1) and (m-2) |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (16) if the United States Environmental Protection |
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| 13 | 13 | | Agency continues to regulate [adopts a final rule or regulation |
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| 14 | 14 | | regulating] carbon dioxide as a pollutant or if any other |
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| 15 | 15 | | applicable environmental rule so regulates carbon dioxide, |
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| 16 | 16 | | property that is used, constructed, acquired, or installed wholly |
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| 17 | 17 | | or partly to capture carbon dioxide from an anthropogenic source in |
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| 18 | 18 | | this state that is geologically sequestered in this state; |
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| 19 | 19 | | (m) Notwithstanding the other provisions of this section, |
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| 20 | 20 | | if the executive director of the Texas Commission on Environmental |
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| 21 | 21 | | Quality confirms that the facility, device, or method for the |
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| 22 | 22 | | control of air, water, or land pollution described in an |
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| 23 | 23 | | application for an exemption under this section is a facility, |
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| 24 | 24 | | device, or method included on the list adopted under Subsection(k), |
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| 25 | 25 | | the executive director [of the Texas Commission on Environmental |
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| 26 | 26 | | Quality], not later than the 30th day after the date of receipt of |
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| 27 | 27 | | the information required by Subsections (c)(2) and(3) and without |
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| 28 | 28 | | regard to whether the information required by Subsection (c)(1) has |
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| 29 | 29 | | been submitted, shall determine that the facility, device, or |
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| 30 | 30 | | method described in the application is used wholly or partly as a |
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| 31 | 31 | | facility, device, or method for the control of air, water, or land |
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| 32 | 32 | | pollution and shall take the actions that are required by |
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| 33 | 33 | | Subsection (d) in the event such a determination is made. |
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| 34 | 34 | | (m-1) Notwithstanding Section 11.31(g-1), if the executive |
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| 35 | 35 | | director confirms that the property described in an application is |
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| 36 | 36 | | a facility, device, or method referenced in Subsection (k)(16) and |
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| 37 | 37 | | is part of an advanced clean energy project as defined by Section |
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| 38 | 38 | | 382.003 (1-a), Health and Safety Code, the executive director shall |
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| 39 | 39 | | determine that it is used wholly as a facility, device, or method |
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| 40 | 40 | | for the control of air, water, or land pollution and shall take the |
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| 41 | 41 | | actions that are required by Subsection (d). |
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| 42 | 42 | | (m-2) If the executive director confirms under Subsection |
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| 43 | 43 | | (m) or determines under Subsection (d) that the facility, device, |
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| 44 | 44 | | or method described in the application is used wholly or partly as a |
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| 45 | 45 | | facility, device, or method for the control of air, water, or land |
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| 46 | 46 | | pollution, it shall not limit the authority of the chief appraiser |
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| 47 | 47 | | under Chapter 23 to: |
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| 48 | 48 | | (1) evaluate whether the facility, device or method |
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| 49 | 49 | | also facilitates an increase in the production of goods at the |
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| 50 | 50 | | facility at which the facility, device, or method is installed or |
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| 51 | 51 | | the sale of a marketable product at a profit in the ordinary course |
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| 52 | 52 | | of business of the facility; and |
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| 53 | 53 | | (2) take any resulting income into account if the |
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| 54 | 54 | | chief appraiser uses the income method of appraisal to determine |
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| 55 | 55 | | the market value of the facility. |
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| 56 | 56 | | SECTION 2. This Act is intended to clarify rather than |
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| 57 | 57 | | change existing law, except 11.31 (m-1), as added by this act, which |
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| 58 | 58 | | applies only to ad valorem taxes imposed for a tax year beginning on |
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| 59 | 59 | | or after January 1, 2016. |
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| 60 | 60 | | SECTION 3 (a) Except as provided by Subsection (b) of |
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| 61 | 61 | | this section, this Act takes effect immediately if it receives a |
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| 62 | 62 | | vote of two-thirds of all the members elected to each house, as |
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| 63 | 63 | | provided by Section 39, Article III, Texas Constitution; and if |
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| 64 | 64 | | this Act does not receive the vote necessary for immediate effect, |
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| 65 | 65 | | this Act takes effect September 1, 2015. |
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| 66 | 66 | | (b) Section 11.31(m-2), Tax Code, as added by this Act, |
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| 67 | 67 | | takes effect January 1, 2016. |
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