85R14443 SMH-F
By: Perez H.B. No. 4219
A BILL TO BE ENTITLED
AN ACT
relating to the procedure for qualifying for 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 adding
Subsections (o), (p), and (q) to read as follows:
(o) The Texas Commission on Environmental Quality shall
adopt by rule a list of property that is used wholly as a facility,
device, or method for the control of air, water, or land pollution.
In adopting the list, the commission shall consider whether
property previously determined by the executive director to be used
wholly for the control of air, water, or land pollution continues to
be used wholly for that purpose based on changes in the use of the
property or changes in environmental regulations. The commission
shall review the list at least once every five years. Section
11.43(c) applies to an exemption granted under this section for
property included on a list adopted by the commission under this
subsection. The fact that property is included on a list adopted by
the commission under this subsection and that the executive
director determined in a prior year that the property was used
wholly as a facility, device, or method for the control of air,
water, or land pollution does not preclude the chief appraiser from
canceling the exemption if the chief appraiser determines that the
facility, device, or method is no longer installed at the property
that is subject to the exemption or is no longer used wholly or
partly for the purposes described by Subsection (b).
(p) An exemption under this section, other than an exemption
for property included on a list adopted by the Texas Commission on
Environmental Quality under Subsection (o), expires at the end of
the fifth tax year after the year in which the executive director
issues a letter under Subsection (d) stating the executive
director's determination that the facility, device, or method is
used wholly or partly to control pollution. To continue to receive
an exemption under this section after that year, the person seeking
to renew the exemption must file a new permit application or permit
exemption request with the executive director under Subsection (c)
and file a new application for the exemption with the chief
appraiser. Notwithstanding Section 11.43(d), a permit application
or permit exemption request under Subsection (c) of this section
must be filed with the executive director and an application for an
exemption must be filed with the chief appraiser not later than
September 1 of the year in which the exemption expires. In addition
to submitting the information required by Subsection (c), the
person must provide proof that the facility, device, or method is
still installed at the property that is subject to the exemption and
is still used wholly or partly for the purposes described by
Subsection (b). The exemption remains in effect until the
executive director or the commission takes final action on the
application. An exemption renewed under this subsection expires at
the end of the fifth tax year after the year in which the executive
director issues a letter under Subsection (d) stating the executive
director's determination that the facility, device, or method is
used wholly or partly to control pollution.
(q) This subsection expires September 1, 2023.
Notwithstanding the provisions of Subsection (p) relating to the
date on which an exemption under this section expires:
(1) an exemption granted under this section before the
1998 tax year, other than an exemption for property included on a
list adopted by the Texas Commission on Environmental Quality under
Subsection (o), expires at the end of the 2018 tax year unless the
person seeking to renew the exemption complies with Subsection (p)
on or before September 1, 2018;
(2) an exemption granted under this section before the
2003 tax year but not before the 1998 tax year, other than an
exemption for property included on a list adopted by the Texas
Commission on Environmental Quality under Subsection (o), expires
at the end of the 2019 tax year unless the person seeking to renew
the exemption complies with Subsection (p) on or before September
1, 2019;
(3) an exemption granted under this section before the
2009 tax year but not before the 2003 tax year, other than an
exemption for property included on a list adopted by the Texas
Commission on Environmental Quality under Subsection (o), expires
at the end of the 2020 tax year unless the person seeking to renew
the exemption complies with Subsection (p) on or before September
1, 2020;
(4) an exemption granted under this section before the
2011 tax year but not before the 2009 tax year, other than an
exemption for property included on a list adopted by the Texas
Commission on Environmental Quality under Subsection (o), expires
at the end of the 2021 tax year unless the person seeking to renew
the exemption complies with Subsection (p) on or before September
1, 2021; and
(5) an exemption granted under this section before the
2018 tax year but not before the 2011 tax year, other than an
exemption for property included on a list adopted by the Texas
Commission on Environmental Quality under Subsection (o), expires
at the end of the 2022 tax year unless the person seeking to renew
the exemption complies with Subsection (p) on or before September
1, 2022.
SECTION 2. Sections 11.43(b) and (c), Tax Code, are amended
to read as follows:
(b) Except as provided by Subsection (c) and by Sections
11.184, 11.31, and 11.437, a person required to apply for an
exemption must apply each year the person claims entitlement to the
exemption.
(c) An exemption provided by Section 11.13, 11.131, 11.132,
11.133, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, 11.20, 11.21,
11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231, 11.254, 11.27,
11.271, 11.29, 11.30, [11.31,] or 11.315, once allowed, need not be
claimed in subsequent years, and except as otherwise provided by
Subsection (e), the exemption applies to the property until it
changes ownership or the person's qualification for the exemption
changes. However, the chief appraiser may require a person allowed
one of the exemptions in a prior year to file a new application to
confirm the person's current qualification for the exemption by
delivering a written notice that a new application is required,
accompanied by an appropriate application form, to the person
previously allowed the exemption. If the person previously allowed
the exemption is 65 years of age or older, the chief appraiser may
not cancel the exemption due to the person's failure to file the new
application unless the chief appraiser complies with the
requirements of Subsection (q), if applicable.
SECTION 3. 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. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.