Texas Senate Bill SB1606

Texas 2019 - 86th Regular

Caption

Relating to payments in lieu of taxes made by certain conservation and reclamation districts on property used as a reservoir.

Impact

The implementation of SB1606 will have a significant impact on the financial arrangements between conservation districts and local taxing authorities. By formalizing the payment in lieu of taxes (PILT) structure, local taxing entities are assured a steady source of revenue from properties used as reservoirs, which may previously have been untaxed due to their ownership status. This act is particularly relevant for areas with substantial water infrastructure, as it aims to alleviate potential funding gaps for local governments while promoting the responsible use of state water resources.

Summary

SB1606 is a legislative bill introduced in Texas that addresses the payment obligations of certain conservation and reclamation districts regarding property used as reservoirs. Specifically, the bill amends Chapter 49 of the Water Code by adding Section 49.159, which mandates that districts owning reservoir property must make annual payments to the taxing units in which the property is located. These payments are intended to be equivalent to the ad valorem taxes that would have been assessed had the property not been owned by the district, excluding improvements on the property. The intent of this legislation is to ensure that local governments receive compensatory revenue for the property occupied by these reservoirs.

Contention

There may be notable points of contention surrounding SB1606 regarding how these payments are calculated and their adequacy in compensating local governments for the use of their land. Stakeholders could include local governments, environmental organizations, and the conservation districts themselves. While proponents of the bill argue it promotes fairness and supports local funding, opponents might raise concerns about the financial burden on districts or the sufficiency of the payments in meeting local needs. Discussions could revolve around ensuring that the formula for calculation reflects the true value of the land and the local economic context.