| 1 | 1 | | 89R9680 JBD-F |
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| 2 | 2 | | By: Perry S.B. No. 1211 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to an exemption from sales and use taxes for certain |
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| 10 | 10 | | tangible personal property used in hydraulic fracturing. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 151.355, Tax Code, is amended to read as |
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| 13 | 13 | | follows: |
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| 14 | 14 | | Sec. 151.355. WATER-RELATED EXEMPTIONS. (a) The following |
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| 15 | 15 | | are exempted from taxes imposed by this chapter: |
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| 16 | 16 | | (1) rainwater harvesting equipment or supplies, water |
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| 17 | 17 | | recycling and reuse equipment or supplies, or other equipment, |
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| 18 | 18 | | services, or supplies used solely to reduce or eliminate water use; |
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| 19 | 19 | | (2) equipment, services, or supplies used solely for |
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| 20 | 20 | | desalination of surface water or groundwater; |
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| 21 | 21 | | (3) equipment, services, or supplies used solely for |
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| 22 | 22 | | brush control designed to enhance the availability of water; |
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| 23 | 23 | | (4) equipment, services, or supplies used solely for |
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| 24 | 24 | | precipitation enhancement; |
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| 25 | 25 | | (5) equipment, services, or supplies used solely to |
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| 26 | 26 | | construct or operate a water or wastewater system certified by the |
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| 27 | 27 | | Texas Commission on Environmental Quality as a regional system; |
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| 28 | 28 | | (6) equipment, services, or supplies used solely to |
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| 29 | 29 | | construct or operate a water supply or wastewater system by a |
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| 30 | 30 | | private entity as a public-private partnership as certified by the |
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| 31 | 31 | | political subdivision that is a party to the project; and |
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| 32 | 32 | | (7) tangible personal property specifically used to |
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| 33 | 33 | | process, reuse, or recycle water, other than freshwater, |
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| 34 | 34 | | [wastewater] that will be used in fracturing work performed at an |
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| 35 | 35 | | oil or gas well. |
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| 36 | 36 | | (b) For the purposes of this section, "freshwater" means |
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| 37 | 37 | | water containing less than 1,000 milligrams per liter of total |
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| 38 | 38 | | dissolved solids. |
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| 39 | 39 | | SECTION 2. Section 151.355, Tax Code, as amended by this |
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| 40 | 40 | | Act, does not affect tax liability accruing before the effective |
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| 41 | 41 | | date of this Act. That liability continues in effect as if this Act |
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| 42 | 42 | | had not been enacted, and the former law is continued in effect for |
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| 43 | 43 | | the collection of taxes due and for civil and criminal enforcement |
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| 44 | 44 | | of the liability for those taxes. |
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| 45 | 45 | | SECTION 3. This Act takes effect September 1, 2025. |
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