By: Guillen, Kacal, Ashby, Lopez of Cameron H.B. No. 3241
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of certain
assets used for agricultural production and to the authority of a
county commissioners court to adopt an exemption from ad valorem
taxation by each taxing unit that taxes the property of the portion
of the appraised value of a person's property that is attributable
to the installation in or on the property of certain water
conservation systems.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.162 to read as follows:
Sec. 11.162. FARM PRODUCTION INPUTS. (a) A producer is
entitled to an exemption from taxation of any resources that the
producer utilizes for the purpose of production.
(b) Farm production inputs in the hands of the producer are
exempt.
(c) For purposes of this exemption, the following
definitions apply:
(1) "Farm production inputs" include seeds, weaned
animals, fertilizer, pesticides, feed, and any other resources that
are necessary to produce crops, fruit, flowers, and other products
of the soil or farm products as defined by Section 11.16.
(2) "In the hands of the producer" means under the
ownership of the person who is utilizing farm production inputs
such as seeds, weaned animals, fertilizer, pesticides, feed, and
any resources necessary to begin production, on January 1 of the tax
year, for the purpose of producing crops, fruits, flowers, and
other products of the soil or farm products as defined by Section
11.16.
SECTION 2. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.325 to read as follows:
Sec. 11.325. WATER CONSERVATION SYSTEMS. (a) In this
section, "graywater" has the meaning assigned by Section 341.039,
Health and Safety Code.
(b) The commissioners court of a county by order may adopt
an exemption from taxation of the portion of the appraised value of
a person's property that is attributable to the installation in or
on the property of a rainwater harvesting or graywater system. An
exemption adopted by a commissioners court under this section
applies to the taxation of property by each taxing unit that taxes
the property.
SECTION 3. Section 11.325, Tax Code, as added by this Act,
applies only to ad valorem taxes imposed for a tax year that begins
on or after January 1, 2024.
SECTION 4. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2023.
(b) Section 11.325, Tax Code, as added by this Act, takes
effect January 1, 2024, but only if the constitutional amendment to
authorize the commissioners court of a county to exempt from ad
valorem taxation by each political subdivision that taxes the
property the portion of the assessed value of a person's property
that is attributable to the installation in or on the property of a
rainwater harvesting or graywater system is approved by the voters.
If that amendment is not approved by the voters, Section 11.325, Tax
Code, as added by this Act, has no effect.