HB 1736

83(R) - 2013
Energy & Environment
Natural Resources

Vote Recommendation

  • Negative
  • Neutral
  • Neutral
  • Negative
  • Neutral


Rafael Anchia

Bill Caption

Relating to an exemption from property taxation for certain facilities that convert landfill generated methane into renewable natural gas.

Fiscal Notes

Passage of the bill would temporarily exempt property located in or in close proximity to a landfill and used to collect,compress, transport, process and deliver gas generated by the landfill into a pipeline or methane fueling station. As a result, taxable property values would be reduced and the related costs to the Foundation School Fund would be increased through the operation of the school finance formulas, however the costs would be limited to FY 2015.

Bill Analysis

Summary: HB 1736 would grant property tax exemptions to facilities that convert landfill generated methane gas into renewable natural gas. This exemption would last from January 1, 2014 until December 31, 2015.

Analysis: Revenue from property taxes is put into the Foundation School Fund. Because HB 1736 would lead to a reduction in revenue to this fund, the Fiscal Note states that additional costs related to the fund “would be increased through the operation of the school finance formulas.” HB 1736 would lower taxes for a specific industry and then look to the rest of the state to make up the difference. HB 1736 does not lower taxes, it shifts the tax burden. Additionally, HB 1736 would represent the government giving special privileges to one faction of the industry and unfair advantage over other types of energy production. On the basis that HB 1736 would shift the tax burden rather than truly cut taxes, we oppose this legislation.