By: Powell S.B. No. 1294
(In the Senate - Filed February 28, 2019; March 7, 2019,
read first time and referred to Committee on Finance; May 7, 2019,
reported favorably by the following vote: Yeas 13, Nays 1;
May 7, 2019, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to water-related exemptions from sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.355, Tax Code, is amended to read as
follows:
Sec. 151.355. WATER-RELATED EXEMPTIONS. The following are
exempted from taxes imposed by this chapter:
(1) equipment, services, or supplies used solely for
rainwater harvesting;
(1-a) [equipment or supplies,] water recycling and
reuse equipment or supplies[,] or other equipment, services, or
supplies used solely to reduce or eliminate water use;
(2) equipment, services, or supplies used solely for
desalination of surface water or groundwater;
(3) equipment, services, or supplies used solely for
brush control designed to enhance the availability of water;
(4) equipment, services, or supplies used solely for
precipitation enhancement;
(5) equipment, services, or supplies used solely to
construct or operate a water or wastewater system certified by the
Texas Commission on Environmental Quality as a regional system;
(6) equipment, services, or supplies used solely to
construct or operate a water supply or wastewater system by a
private entity as a public-private partnership as certified by the
political subdivision that is a party to the project; and
(7) tangible personal property specifically used to
process, reuse, or recycle wastewater that will be used in
fracturing work performed at an oil or gas well.
SECTION 2. The changes in law made by this Act do not affect
tax liability accruing before the effective date of this Act. That
liability continues in effect as if this Act had not been enacted,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes.
SECTION 3. This Act takes effect on the first day of the
first month beginning on or after the earliest date on which this
Act may take effect 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 effect before September 1, 2019, this Act takes
effect September 1, 2019.
* * * * *