| 3 | 2 | | |
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| 4 | 3 | | |
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| 5 | 4 | | A BILL TO BE ENTITLED |
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| 6 | 5 | | AN ACT |
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| 7 | 6 | | relating to water-related exemptions from sales and use taxes. |
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| 8 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 8 | | SECTION 1. Section 151.355, Tax Code, is amended to read as |
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| 10 | 9 | | follows: |
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| 11 | 10 | | Sec. 151.355. WATER-RELATED EXEMPTIONS. The following are |
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| 12 | 11 | | exempted from taxes imposed by this chapter: |
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| 13 | 12 | | (1) equipment, services, or supplies used solely for |
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| 14 | 13 | | rainwater harvesting; |
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| 15 | 14 | | (1-a) [equipment or supplies,] water recycling and |
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| 16 | 15 | | reuse equipment or supplies[,] or other equipment, services, or |
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| 17 | 16 | | supplies used solely to reduce or eliminate water use; |
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| 18 | 17 | | (2) equipment, services, or supplies used solely for |
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| 19 | 18 | | desalination of surface water or groundwater; |
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| 20 | 19 | | (3) equipment, services, or supplies used solely for |
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| 21 | 20 | | brush control designed to enhance the availability of water; |
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| 22 | 21 | | (4) equipment, services, or supplies used solely for |
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| 23 | 22 | | precipitation enhancement; |
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| 24 | 23 | | (5) equipment, services, or supplies used solely to |
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| 25 | 24 | | construct or operate a water or wastewater system certified by the |
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| 26 | 25 | | Texas Commission on Environmental Quality as a regional system; |
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| 27 | 26 | | (6) equipment, services, or supplies used solely to |
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| 28 | 27 | | construct or operate a water supply or wastewater system by a |
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| 29 | 28 | | private entity as a public-private partnership as certified by the |
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| 30 | 29 | | political subdivision that is a party to the project; and |
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| 31 | 30 | | (7) tangible personal property specifically used to |
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| 32 | 31 | | process, reuse, or recycle wastewater that will be used in |
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| 33 | 32 | | fracturing work performed at an oil or gas well. |
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| 34 | 33 | | SECTION 2. The changes in law made by this Act do not affect |
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| 35 | 34 | | tax liability accruing before the effective date of this Act. That |
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| 36 | 35 | | liability continues in effect as if this Act had not been enacted, |
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| 37 | 36 | | and the former law is continued in effect for the collection of |
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| 38 | 37 | | taxes due and for civil and criminal enforcement of the liability |
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| 39 | 38 | | for those taxes. |
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| 40 | 39 | | SECTION 3. This Act takes effect on the first day of the |
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| 41 | 40 | | first month beginning on or after the earliest date on which this |
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| 42 | 41 | | Act may take effect if it receives a vote of two-thirds of all the |
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| 43 | 42 | | members elected to each house, as provided by Section 39, Article |
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| 44 | 43 | | III, Texas Constitution. If this Act does not receive the vote |
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| 45 | 44 | | necessary for effect before September 1, 2019, this Act takes |
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| 46 | 45 | | effect September 1, 2019. |
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