Bill Text: TX SB1685 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to exemptions from property taxation and sales and use taxation for certain offshore spill response and well containment property used to control pollution.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-04-29 - Reported from s/c favorably with substitute [SB1685 Detail]
Download: Texas-2013-SB1685-Introduced.html
By: Zaffirini | S.B. No. 1685 | |
|
||
|
||
relating to exemptions from property taxation and sales and use | ||
taxation for certain offshore spill response and well containment | ||
property used to control pollution. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 11.31, Tax Code, is amended by amending | ||
Subsections (a), (b), (c), (d), and (m) and adding Subsections (o) | ||
and (p) to read as follows: | ||
(a) A person is entitled to an exemption from taxation of | ||
all or part of real and personal property that the person owns and | ||
that is used wholly or partly as a facility, device, or method for | ||
the control of air, water, or land pollution. A person is not | ||
entitled to an exemption from taxation under this section solely on | ||
the basis that the person manufactures or produces a product or | ||
provides a service that prevents, monitors, controls, or reduces | ||
air, water, or land pollution, except as provided in Subsection | ||
(o). Property used for residential purposes, or for recreational, | ||
park, or scenic uses as defined by Section 23.81, is ineligible for | ||
an exemption under this section. | ||
(b) In this section, "facility, device, or method for the | ||
control of air, water, or land pollution" means land that is | ||
acquired after January 1, 1994, or any structure, building, | ||
installation, excavation, machinery, equipment, or device, and any | ||
attachment or addition to or reconstruction, replacement, or | ||
improvement of that property, that is used, constructed, acquired, | ||
or installed wholly or partly to meet or exceed rules or regulations | ||
adopted by any environmental protection agency of the United | ||
States, this state, or a political subdivision of this state for the | ||
prevention, monitoring, control, or reduction of air, water, or | ||
land pollution and includes property described in Subsection (o). | ||
In this section, "pollution control property" includes property | ||
described in Subsection (o). This section does not apply to a motor | ||
vehicle. | ||
(c) In applying for an exemption under this section, a | ||
person seeking the exemption shall present in a permit application | ||
or permit exemption request to the executive director of the Texas | ||
Commission on Environmental Quality information detailing: | ||
(1) the anticipated environmental benefits from the | ||
installation of the facility, device, or method for the control of | ||
air, water, or land pollution; | ||
(2) the estimated cost of the pollution control | ||
facility, device, or method; and | ||
(3) the purpose of the installation of such facility, | ||
device, or method, and the proportion of the installation that is | ||
pollution control. | ||
If the installation includes property that is not used wholly | ||
for the control of air, water, or land pollution or described in | ||
Subsection (o), the person seeking the exemption shall also present | ||
such financial or other data as the executive director requires by | ||
rule for the determination of the proportion of the installation | ||
that is pollution control. | ||
(d) Following submission of the information required by | ||
Subsection (c), the executive director of the Texas Commission on | ||
Environmental Quality shall determine if the facility, device, or | ||
method is used wholly or partly as a facility, device, or method for | ||
the control of air, water, or land pollution. As soon as | ||
practicable, the executive director shall send notice by regular | ||
mail or by electronic means to the chief appraiser of the appraisal | ||
district for the county in which the property is located that the | ||
person has applied for a determination under this subsection. The | ||
executive director shall issue a letter to the person stating the | ||
executive director's determination of whether the facility, | ||
device, or method is used wholly or partly to control pollution or | ||
as property described in Subsection (o) and, if applicable, the | ||
proportion of the property that is pollution control property. The | ||
executive director shall send a copy of the letter by regular mail | ||
or by electronic means to the chief appraiser of the appraisal | ||
district for the county in which the property is located. | ||
(m) Notwithstanding the other provisions of this section, | ||
if the facility, device, or method for the control of air, water, or | ||
land pollution described in an application for an exemption under | ||
this section is a facility, device, or method included on the list | ||
adopted under Subsection (k) or property described in Subsection | ||
(o), the executive director of the Texas Commission on | ||
Environmental Quality, not later than the 30th day after the date of | ||
receipt of the information required by Subsections (c)(2) and (3) | ||
and without regard to whether the information required by | ||
Subsection (c)(1) has been submitted, shall determine that the | ||
facility, device, or method described in the application is used | ||
wholly or partly as a facility, device, or method for the control of | ||
air, water, or land pollution and shall take the actions that are | ||
required by Subsection (d) in the event such a determination is | ||
made. | ||
(o) Notwithstanding any other provision in this section, a | ||
person is entitled to an exemption from taxation of all or part of | ||
real and personal property that the person owns or leases and that | ||
is used, constructed, acquired, stored, or installed primarily as | ||
part of an offshore spill response containment system. For | ||
purposes of this section, property described in this subsection | ||
shall be treated as used wholly as a facility, device, or method for | ||
the control of air, water, or land pollution. | ||
(p) In Subsection (o): | ||
(1) "Offshore spill response containment system" | ||
means: | ||
(A) a containment system: | ||
(i) for a response plan to meet or exceed | ||
rules or regulations adopted by any environmental protection agency | ||
of the United States, this state, or a political subdivision of this | ||
state for the control, reduction, or monitoring of air, water, or | ||
land pollution in the event of a blowout or loss of control of an | ||
offshore well drilled or used for the exploration for or production | ||
of oil, gas, sulphur or other minerals; and | ||
(ii) having a design capability to respond | ||
to a blowout or loss of control of such an offshore well drilled in | ||
more than 5,000 feet of water; and | ||
(B) real and personal property used for the | ||
development, improvement, storage, deployment, repair, | ||
maintenance, or testing of such containment system. | ||
(2) "Environmental protection agency of the United | ||
States" includes: | ||
(A) the United States Department of the Interior | ||
and agencies, bureaus, or other entities established in the United | ||
States Department of the Interior, including the Bureau of Safety | ||
and Environmental Enforcement and the Bureau of Ocean Energy | ||
Management; and | ||
(B) any other department, agency, bureau, or | ||
entity of the United States that prescribes rules or regulations | ||
described by Subsection (p)(1)(A)(i). | ||
(3) "Rules or regulations adopted by any environmental | ||
protection agency of the United States" include Title 30, Code of | ||
Federal Regulations, Part 254, and any corresponding provision or | ||
provisions of succeeding, similar, substitute, proposed, or final | ||
federal regulations. | ||
SECTION 2. Chapter 151, Tax Code, is amended by adding | ||
Section 151.356 to read as follows: | ||
Sec. 151.356 OFFSHORE SPILL RESPONSE AND WELL CONTAINMENT | ||
PROPERTY. (a) A person described in Section 11.31(o), Tax Code, is | ||
entitled to an exemption from the taxes imposed by this chapter for | ||
the purchase, sale, lease, rental, storage, use or consumption of | ||
property described in Section 11.31(o), Tax Code. | ||
(b) A service performed on property described in Section | ||
11.31(o), Tax Code, is exempted from the taxes imposed by this | ||
chapter. | ||
SECTION 3. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2013. |