Texas Senate Bill SB2028

Texas 2017 - 85th Regular

Caption

Relating to the procedure for qualifying for the exemption from ad valorem taxation of pollution control property.

Impact

The bill impacts state laws by establishing a structured approach to tax exemptions for pollution control properties. It mandates that the TCEQ develop a definitive list, which could streamline tax-related processes for companies engaged in environmental management. Consequently, businesses may benefit from clearer guidelines regarding their taxation status while adhering to environmental regulations. The bill aims to encourage sustainable practices by ensuring that only active pollution control properties receive the tax benefits, thereby promoting accountability among entities managing such facilities.

Summary

SB2028 focuses on the procedures for qualifying for exemptions from ad valorem taxation for properties that are used in pollution control. The bill amends Section 11.31 of the Texas Tax Code, introducing specific rules regarding how the Texas Commission on Environmental Quality (TCEQ) will maintain a list of properties utilized for environmental control. This list must be reviewed periodically, ensuring that properties remain compliant with environmental standards. If properties are found to no longer serve their intended purposes, they can lose their tax exemption.

Contention

A notable point of contention concerning SB2028 may arise from its potential implications on property owners who rely on these tax exemptions. Concerns could be raised regarding the financial impact on businesses if they suddenly lose their exemption status due to strict compliance checks. Additionally, the limitations placed on how often exemptions can be renewed (with significant compliance documentation required) could result in resistance from property owners who may find the process burdensome. Therefore, discussions surrounding the balance between environmental responsibility and the economic implications for property owners are likely to be central during legislative discussions.