Bill Text: TX HB3241 | 2023-2024 | 88th Legislature | Engrossed
Bill Title: 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.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Engrossed - Dead) 2023-05-11 - Referred to Local Government [HB3241 Detail]
Download: Texas-2023-HB3241-Engrossed.html
By: Guillen, Kacal, Ashby, Lopez of Cameron | H.B. No. 3241 |
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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. |