By: Seliger S.B. No. 1983
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of pollution
control property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.31, Tax Code, is amended by amending
Subsection (k)(16) and (m) and adding Subsections (m-1) and (m-2)
to read as follows:
(16) if the United States Environmental Protection
Agency continues to regulate [adopts a final rule or regulation
regulating] carbon dioxide as a pollutant or if any other
applicable environmental rule so regulates carbon dioxide,
property that is used, constructed, acquired, or installed wholly
or partly to capture carbon dioxide from an anthropogenic source in
this state that is geologically sequestered in this state;
(m) Notwithstanding the other provisions of this section,
if the executive director of the Texas Commission on Environmental
Quality confirms that the facility, device, or method for the
control of air, water, or land pollution described in an
application for an exemption under this section is a facility,
device, or method included on the list adopted under Subsection(k),
the executive director [of the Texas Commission on Environmental
Quality], not later than the 30th day after the date of receipt of
the information required by Subsections (c)(2) and(3) and without
regard to whether the information required by Subsection (c)(1) has
been submitted, shall determine that the facility, device, or
method described in the application is used wholly or partly as a
facility, device, or method for the control of air, water, or land
pollution and shall take the actions that are required by
Subsection (d) in the event such a determination is made.
(m-1) Notwithstanding Section 11.31(g-1), if the executive
director confirms that the property described in an application is
a facility, device, or method referenced in Subsection (k)(16) and
is part of an advanced clean energy project as defined by Section
382.003 (1-a), Health and Safety Code, the executive director shall
determine that it is used wholly as a facility, device, or method
for the control of air, water, or land pollution and shall take the
actions that are required by Subsection (d).
(m-2) If the executive director confirms under Subsection
(m) or determines under Subsection (d) that the facility, device,
or method described in the application is used wholly or partly as a
facility, device, or method for the control of air, water, or land
pollution, it shall not limit the authority of the chief appraiser
under Chapter 23 to:
(1) evaluate whether the facility, device or method
also facilitates an increase in the production of goods at the
facility at which the facility, device, or method is installed or
the sale of a marketable product at a profit in the ordinary course
of business of the facility; and
(2) take any resulting income into account if the
chief appraiser uses the income method of appraisal to determine
the market value of the facility.
SECTION 2. This Act is intended to clarify rather than
change existing law, except 11.31 (m-1), as added by this act, which
applies only to ad valorem taxes imposed for a tax year beginning on
or after January 1, 2016.
SECTION 3 (a) Except as provided by Subsection (b) of
this section, this Act takes effect immediately if it receives a
vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution; and if
this Act does not receive the vote necessary for immediate effect,
this Act takes effect September 1, 2015.
(b) Section 11.31(m-2), Tax Code, as added by this Act,
takes effect January 1, 2016.