| 1 | 1 | | 89R8195 CS-D |
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| 2 | 2 | | By: Creighton S.B. No. 2393 |
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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 ad valorem taxation of the amount of |
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| 10 | 10 | | the appraised value of real property that arises from the |
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| 11 | 11 | | installation or construction on the property of a generator that is |
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| 12 | 12 | | primarily for the production and distribution of energy for on-site |
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| 13 | 13 | | use. |
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| 14 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 15 | 15 | | SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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| 16 | 16 | | adding Section 11.38 to read as follows: |
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| 17 | 17 | | Sec. 11.38. ELECTRIC GENERATORS. (a) In this section, |
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| 18 | 18 | | "electric generator" means a device that converts mechanical energy |
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| 19 | 19 | | to electrical energy and is: |
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| 20 | 20 | | (1) powered by natural gas, liquefied petroleum gas, |
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| 21 | 21 | | diesel fuel, biodiesel fuel, or hydrogen; |
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| 22 | 22 | | (2) fully enclosed in an integral |
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| 23 | 23 | | manufacturer-supplied sound attenuating enclosure; and |
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| 24 | 24 | | (3) connected to the main electrical panel of a |
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| 25 | 25 | | structure by a manual or automatic transfer switch. |
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| 26 | 26 | | (b) A person is entitled to an exemption from taxation of |
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| 27 | 27 | | the amount of appraised value of real property owned by the person |
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| 28 | 28 | | that arises from the installation or construction on the property |
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| 29 | 29 | | of an electric generator that is primarily for production and |
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| 30 | 30 | | distribution of energy for on-site use. |
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| 31 | 31 | | (c) The comptroller shall develop guidelines to assist |
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| 32 | 32 | | local officials in the administration of this section. |
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| 33 | 33 | | SECTION 2. Section 11.43(c), Tax Code, is amended to read as |
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| 34 | 34 | | follows: |
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| 35 | 35 | | (c) An exemption provided by Section 11.13, 11.131, 11.132, |
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| 36 | 36 | | 11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, |
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| 37 | 37 | | 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231, |
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| 38 | 38 | | 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, 11.35, [or] |
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| 39 | 39 | | 11.36, or 11.38 once allowed, need not be claimed in subsequent |
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| 40 | 40 | | years, and except as otherwise provided by Subsection (e), the |
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| 41 | 41 | | exemption applies to the property until it changes ownership or the |
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| 42 | 42 | | person's qualification for the exemption changes. However, except |
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| 43 | 43 | | as provided by Subsection (r), the chief appraiser may require a |
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| 44 | 44 | | person allowed one of the exemptions in a prior year to file a new |
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| 45 | 45 | | application to confirm the person's current qualification for the |
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| 46 | 46 | | exemption by delivering a written notice that a new application is |
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| 47 | 47 | | required, accompanied by an appropriate application form, to the |
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| 48 | 48 | | person previously allowed the exemption. If the person previously |
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| 49 | 49 | | allowed the exemption is 65 years of age or older, the chief |
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| 50 | 50 | | appraiser may not cancel the exemption due to the person's failure |
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| 51 | 51 | | to file the new application unless the chief appraiser complies |
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| 52 | 52 | | with the requirements of Subsection (q), if applicable. |
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| 53 | 53 | | SECTION 3. Section 11.38, Tax Code, as added by this Act, |
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| 54 | 54 | | applies only to an ad valorem tax year that begins on or after the |
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| 55 | 55 | | effective date of this Act. |
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| 56 | 56 | | SECTION 4. It is the intent of the 89th Legislature, Regular |
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| 57 | 57 | | Session, 2025, that the amendments made by this Act be harmonized |
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| 58 | 58 | | with another Act of the 89th Legislature, Regular Session, 2025, |
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| 59 | 59 | | relating to nonsubstantive additions to and corrections in enacted |
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| 60 | 60 | | codes. |
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| 61 | 61 | | SECTION 5. This Act takes effect January 1, 2026, but only |
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| 62 | 62 | | if the constitutional amendment proposed by the 89th Legislature, |
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| 63 | 63 | | Regular Session, 2025, authorizing the legislature to exempt from |
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| 64 | 64 | | ad valorem taxation the amount of the appraised value of real |
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| 65 | 65 | | property that arises from the installation or construction on the |
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| 66 | 66 | | property of a generator that is primarily for the production and |
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| 67 | 67 | | distribution of energy for on-site use is approved by the voters. |
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| 68 | 68 | | If that amendment is not approved by the voters, this Act has no |
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| 69 | 69 | | effect. |
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