Bill

HB 994

84(R) - 2015
House Ways & Means
House Ways & Means
Taxes

Vote Recommendation

No
  • Negative
  • Neutral
  • Neutral
  • Negative
  • Neutral

Author(s)

Rafael Anchia

Co-Author(s)

Dwayne Bohac
Terry Canales
Dan Huberty
James Keffer
Richard Raymond
Toni Rose
David Simpson
Chris Turner
Bill Zedler
John Zerwas

Bill Caption

Relating to the exemption from ad valorem taxation of property used to collect, process, and deliver landfill-generated gas.

Fiscal Notes

A fiscal note dated April 1, 2015 anticipates no fiscal impact to General Revenue Related Funds through the biennium ending August 31, 2017.

It anticipates a negative fiscal implication to units of local government though.

All Funds, Five-Year Impact:

Fiscal Year Probable Revenue Gain/(Loss) from School Districts Probable Revenue Gain/(Loss) from Counties Probable Revenue Gain/(Loss) from Cities Probable Revenue Gain/(Loss) from Other Special Districts
2016 $0 $0 $0 $0
2017 ($653,000) ($198,000) ($196,000) ($138,000)
2018 ($773,000) ($236,000) ($232,000) ($164,000)
2019 ($904,000) ($276,000) ($272,000) ($192,000)
2020 ($997,000) ($305,000) ($300,000) ($212,000)

5/18/15 update:
Due to the additional provision in the committee substitute introduced by the second chamber, All funds, five-year impact is updated in a May 15, 2015 fiscal note as follows:

Fiscal Year Probable Revenue Gain/(Loss) from School Districts Probable Revenue Gain/(Loss) from Counties Probable Revenue Gain/(Loss) from Cities Probable Revenue Gain/(Loss) from Other Special Districts
2016 $0 $0 $0 $0
2017 ($490,000) ($149,000) ($147,000) ($104,000)
2018 ($580,000) ($177,000) ($174,000) ($123,000)
2019 ($678,000) ($207,000) ($204,000) ($144,000)
2020 ($748,000) ($229,000) ($225,000) ($159,000)

Bill Analysis

House Bill 994 would make permanent a property tax exemption for real and personal property that is located on or in close proximity to a landfill and is used as a landfill-generated gas conversion facility (Section 11.311 of the Tax Code).

The second chamber sponsor is Senator Royce West.

Vote Recommendation Notes

5/18/15 Update:

The Senate Finance Committee introduced a committee substitute for House Bill 994 that would require the commission to develop rules to limit the value of the exemption to only the value of the equipment used as business personal property on which gas is collected.

This provision does not change our position on the exemption itself though. We continue to oppose this bill.

First chamber analysis below:

House Bill 994 would make a temporary property tax exemption permanent for landfill-generated gas conversion facilities. The statement of intent of the bill states that despite their environmental benefit, these facilities face economic challenges and the exemption would be necessary in order to sustain new, similar projects.

House Bill 994 would be a detriment to the free market system, as it would allow government to willfully ignore the market forces in a certain area of business in order to help and favor a particular group of businesses. The role of government in a free market system is not to pick winners and losers. As a consequence, we oppose House Bill 994.