Texas House Bill HB4012

Texas 2019 - 86th Regular

Caption

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

Impact

This legislation could significantly influence how ad valorem taxation is applied to facilities involved in environmental protection. By necessitating periodic reviews and the establishment of a list of qualifying properties, the bill supports ongoing compliance with evolving environmental regulations. The requirement that properties be reassessed for their pollution control use aims to avoid potential misuse of exemptions that could arise from changing operational practices or technologies over time.

Summary

House Bill 4012 aims to amend the Texas Tax Code concerning the exemption from ad valorem taxation for pollution control property. The bill seeks to establish more structured criteria and procedures for qualifying properties that are utilized for controlling environmental pollutants. One primary element incorporates the Texas Commission on Environmental Quality's role in maintaining an updated list of eligible properties, ensuring that these properties meet current standards and continuously serve their intended purpose in pollution control.

Contention

Notably, the bill introduces a stipulation that certain exemptions will expire after five years unless the property owners reapply. This aspect may generate debate, particularly among business owners and environmental advocates. While proponents argue this ensures accountability and proper use of tax exemptions, critics may view it as an additional administrative burden that could discourage investment in pollution control technologies. The specific expiration and renewal processes may also lead to points of contention regarding fairness and the clarity of regulations surrounding these exemptions.