HB 2712

83(R) - 2013

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Negative
  • Neutral


Mary Ann Perez

Bill Caption

Relating to the exemption from ad valorem taxation of energy storage systems used for the control of air pollution in a nonattainment area.

Fiscal Notes

Passage of the bill would authorize local taxing units to adopt a pollution control exemption for energy storage system property in counties that are currently designated by the U.S. Environmental Protection Agency as air quality nonattainment areas. To the extent that school districts adopt the exemption in these counties, the bill would create a cost to the state through the operation of the school funding formula and additional state aid.

Bill Analysis

Summary: HB 2712 would make energy storage systems in non-attainment areas exempt from property taxes if the exemption is adopted by their government taxing unit, and if they meet any government agency regulations that prevent, monitor, control or reduce air pollution. They must have a capacity of at least 10 megawatts and be installed after January 1st, 2014. Once adopted by a political taxing unit, an exemption can be repealed. HB 2712 provides additional state aid to school districts for funds lost due to this property tax exemption for energy storage systems. The comptroller will determine the amount of state aid, and the comptroller’s decision is final.

Analysis: HB 2712 provides a narrow property tax exemption to owners of energy storage systems and requires other taxpayers across the state to reimburse school districts with state aid money. If it were only the tax exemption, TPPA would be able to support HB 2712 on the basis that it limits government revenue and promotes property rights, even though it is a narrow exemption. Requiring taxpayers to reimburse school districts for the property tax loss, however, is an unfair shift in the tax burden that does not limit government. Vote “no,” on HB 2712.