| 1 | 1 | | By: Guillen, Kacal, Ashby, Lopez of Cameron H.B. No. 3241 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the exemption from ad valorem taxation of certain |
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| 7 | 7 | | assets used for agricultural production and to the authority of a |
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| 8 | 8 | | county commissioners court to adopt an exemption from ad valorem |
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| 9 | 9 | | taxation by each taxing unit that taxes the property of the portion |
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| 10 | 10 | | of the appraised value of a person's property that is attributable |
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| 11 | 11 | | to the installation in or on the property of certain water |
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| 12 | 12 | | conservation systems. |
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| 13 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 14 | | SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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| 15 | 15 | | adding Section 11.162 to read as follows: |
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| 16 | 16 | | Sec. 11.162. FARM PRODUCTION INPUTS. (a) A producer is |
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| 17 | 17 | | entitled to an exemption from taxation of any resources that the |
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| 18 | 18 | | producer utilizes for the purpose of production. |
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| 19 | 19 | | (b) Farm production inputs in the hands of the producer are |
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| 20 | 20 | | exempt. |
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| 21 | 21 | | (c) For purposes of this exemption, the following |
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| 22 | 22 | | definitions apply: |
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| 23 | 23 | | (1) "Farm production inputs" include seeds, weaned |
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| 24 | 24 | | animals, fertilizer, pesticides, feed, and any other resources that |
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| 25 | 25 | | are necessary to produce crops, fruit, flowers, and other products |
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| 26 | 26 | | of the soil or farm products as defined by Section 11.16. |
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| 27 | 27 | | (2) "In the hands of the producer" means under the |
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| 28 | 28 | | ownership of the person who is utilizing farm production inputs |
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| 29 | 29 | | such as seeds, weaned animals, fertilizer, pesticides, feed, and |
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| 30 | 30 | | any resources necessary to begin production, on January 1 of the tax |
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| 31 | 31 | | year, for the purpose of producing crops, fruits, flowers, and |
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| 32 | 32 | | other products of the soil or farm products as defined by Section |
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| 33 | 33 | | 11.16. |
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| 34 | 34 | | SECTION 2. Subchapter B, Chapter 11, Tax Code, is amended by |
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| 35 | 35 | | adding Section 11.325 to read as follows: |
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| 36 | 36 | | Sec. 11.325. WATER CONSERVATION SYSTEMS. (a) In this |
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| 37 | 37 | | section, "graywater" has the meaning assigned by Section 341.039, |
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| 38 | 38 | | Health and Safety Code. |
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| 39 | 39 | | (b) The commissioners court of a county by order may adopt |
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| 40 | 40 | | an exemption from taxation of the portion of the appraised value of |
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| 41 | 41 | | a person's property that is attributable to the installation in or |
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| 42 | 42 | | on the property of a rainwater harvesting or graywater system. An |
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| 43 | 43 | | exemption adopted by a commissioners court under this section |
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| 44 | 44 | | applies to the taxation of property by each taxing unit that taxes |
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| 45 | 45 | | the property. |
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| 46 | 46 | | SECTION 3. Section 11.325, Tax Code, as added by this Act, |
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| 47 | 47 | | applies only to ad valorem taxes imposed for a tax year that begins |
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| 48 | 48 | | on or after January 1, 2024. |
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| 49 | 49 | | SECTION 4. (a) Except as provided by Subsection (b) of this |
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| 50 | 50 | | section, this Act takes effect September 1, 2023. |
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| 51 | 51 | | (b) Section 11.325, Tax Code, as added by this Act, takes |
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| 52 | 52 | | effect January 1, 2024, but only if the constitutional amendment to |
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| 53 | 53 | | authorize the commissioners court of a county to exempt from ad |
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| 54 | 54 | | valorem taxation by each political subdivision that taxes the |
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| 55 | 55 | | property the portion of the assessed value of a person's property |
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| 56 | 56 | | that is attributable to the installation in or on the property of a |
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| 57 | 57 | | rainwater harvesting or graywater system is approved by the voters. |
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| 58 | 58 | | If that amendment is not approved by the voters, Section 11.325, Tax |
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| 59 | 59 | | Code, as added by this Act, has no effect. |
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