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Title 1. Property Tax Code
Subtitle C. Taxable Property and Exemptions

Chapter 11. Taxable Property and Exemptions
Subchapter B. Exemptions

Sec. 11.11. Public Property.
Sec. 11.111. Public Property Used to Provide Transitional Housing for Indigent Persons.
Sec. 11.12. Federal Exemptions.
Sec. 11.13. Residence Homestead.
Sec. 11.14. Tangible Personal Property Not Producing Income.
Sec. 11.142. Travel Trailers.
Sec. 11.145. Income Producing Tangible Personal Property Having Value Less than $500.
Sec. 11.146. Mineral Interest Having Value of Less than $500.
Sec. 11.15. Family Supplies.
Sec. 11.16. Farm Products.
Sec. 11.161. Implements of Husbandry.
Sec. 11.17. Cemeteries.
Sec. 11.18. Charitable Organizations.
Sec. 11.1801. Charity Care and Community Benefits Requirements for Charitable Hospital.
Sec. 11.181. Charitable Organizations Improving Property for Low-Income Housing.
Sec. 11.182. Community Housing Development Organizations Improving Property for Low-Income and Moderate-Income Housing.
Sec. 11.183. Association Providing Assistance to Ambulatory Health Care Centers.
Sec. 11.184. Organizations Engaged Primarily in Performing Charitable Functions.
Sec. 11.185. Colonia Model Subdivision Program.
Sec. 11.19. Youth Spiritual, Mental, and Physical Development Associations.
Sec. 11.20. Religious Organizations.
Sec. 11.21. Schools.
Sec. 11.22. Disabled Veterans.
Sec. 11.23. Miscellaneous Exemptions.
Sec. 11.24. Historic Sites.
Sec. 11.25. Marine Cargo Containers Used Exclusively in International Commerce.
Sec. 11.251. Tangible Personal Property Exempt.
Sec. 11.252. Motor Vehicles Leased for Personal Use.
Sec. 11.26. Limitation of School Tax on Homesteads of Elderly.
Sec. 11.27. Solar and Wind-Powered Energy Devices.
Sec. 11.271. Offshore Drilling Equipment Not in Use.
Sec. 11.28. Property Exempted from City Taxation by Agreement.
Sec. 11.29. Intracoastal Waterway Dredge Disposal Site.
Sec. 11.30. Nonprofit Water Supply or Wastewater Service Corporation.
Sec. 11.31. Pollution Control Property.
Sec. 11.32. Certain Water Conservation Initiatives.
Sec. 11.33. Raw Cocoa and Green Coffee Held in Harris County.

[Sections 11.34 to 11.40 reserved for expansion]

Sec. 11.27. Solar and Wind-Powered Energy Devices.

(a) A person is entitled to an exemption from taxation of the amount of appraised value of his property that arises from the installation or construction of a solar or wind-powered energy device that is primarily for production and distribution of energy for on-site use.

(b) The comptroller, with the assistance of the Texas Energy and Natural Resources Advisory Council, or its successor, shall develop guidelines to assist local officials in the administration of this section.

(c) In this section:

(1) "Solar energy device" means an apparatus designed or adapted to convert the radiant energy from the sun, including energy imparted to plants through photosynthesis employing the bioconversion processes of anaerobic digestion, gasification, pyrolysis, or fermentation, but not including direct combustion, into thermal, mechanical, or electrical energy; to store the converted energy, either in the form to which originally converted or another form; or to distribute radiant solar energy or the energy to which the radiant solar energy is con-verted.

(2) "Wind-powered energy device" means an apparatus designed or adapted to convert the energy available in the wind into thermal, mechanical, or electrical energy; to store the converted energy, either in the form to which originally converted or another form; or to distribute the converted energy.

Added by 1981 Tex. Laws (1st C.S.), p. 130, ch. 13, Sec. 39; amended by 1991 Tex. Laws (2nd C.S.), p. 29, ch. 6, Sec. 11.

Cross References:

Exemption application form, see Rule Sec. 9.415.
Annual application required, see Sec. 11.43(b).
Constitutional authorization, see art. VIII, Sec. 2(a), Tex. Const.

Sec. 11.271. Offshore Drilling Equipment Not in Use.

An owner or lessee of a marine or mobile drilling unit designed for offshore drilling of oil or gas wells is entitled to an exemption from taxation of the drilling unit if the drilling unit:

(1) is being stored in a county bordering on the Gulf of Mexico or on a bay or other body of water immediately adjacent to the Gulf of Mexico;

(2) is not being stored for the sole purpose of repair or maintenance; and

(3) is not being used to drill a well at the location at which it is being stored.

Added by 1987 Tex. Laws, ch. 805, Sec. 1.

Cross References:

Constitutional authorization, see art. VIII, Sec. I-i, Tex. Const.
Annual application required, see Sec. 11.43(b).
Model application form for offshore drilling equipment not in use, see Rule Sec. 9.415.

Sec. 11.28. Property Exempted From City Taxation By Agreement.

The owner of property to which an agreement made under the Property Redevelopment and Tax Abatement Act (Chapter 312 of this code) applies is entitled to exemption from taxation by an incorporated city or town or other taxing unit of all or part of the value of the property as provided by the agreement.

Added by 1981 Tex. Laws (1st C.S.), p. 56, ch. 5, Sec. 7; amended by 1987 Tex. Laws, ch. 191, Sec. 2.

Cross References:

Constitutional authorization, see art. VIII, Sec. 1-g, Tex. Const.
Exemption application required, see Sec. 11.43(a).
Property Redevelopment and Tax Abatement Act, see ch. 312, Tax Code.
Model application form, see Rule Sec. 9.415.

Sec. 11.29. Intracoastal Waterway Dredge Disposal Site.

(a) A person is entitled to an exemption from taxation of land that the person owns and that has been dedicated by recorded donated easement dedicating said land as a disposal site for depositing and discharging materials dredged from the main channel of the Gulf Intracoastal Waterway by or under the direction of the state or federal government.

(b) An exemption granted under this section terminates when the land ceases to be used as an active dredge material disposal site described by Subsection (a) of this section and is no longer dedicated for that purpose.

Added by 1987 Tex. Laws, ch. 428, Sec. 1.

Cross References:

Exemption application required, see Sec. 11.43(c).
Exemption application form, see Rule Sec. 9.415.

Notes:

The state statute which authorizes a property tax exemption for easements used solely as disposal sites for material dredged from the Gulf Intracoastal Waterway is unconstitutional. Op. Tex. Att'y. No. DM-301 (1994).

Sec. 11.30. Nonprofit Water Supply or Wastewater Service Corporation.

(a) A corporation organized under Chapter 67, Water Code, that provides in the bylaws of the corporation that on dissolution of the corporation the assets of the corporation remaining after discharge of the corporation's indebtedness shall be transferred to an entity that provides a water supply or wastewater service, or both, that is exempt from ad valorem taxation is entitled to an exemption from taxation of:

(1) property that the corporation owns and that is reasonably necessary for and used in the operation of the corporation:

(A) to acquire, treat, store, transport, sell, or distribute water; or

(B) to provide wastewater service; and

(2) the real property owned by the corporation consisting of:

(A) an incomplete improvement that:

(i) is under active construction or other physical preparation; and

(ii) is designed and intended to be used in the operation of the corporation for a purpose described by Subdivision (1) when complete; and

(B) the land on which the incomplete improvement is located that will be reasonably necessary for the use of the improvement in the operation of the corporation for a purpose described by Subdivision (1).

(b) A property may not be exempted under Subsection (a)(2) for more than three years.

(c) For purposes of Subsection (a)(2), an incomplete improvement is under physical preparation if the corporation has:

(1) engaged in architectural or engineering work, soil testing, land clearing activities, or site improvement work necessary for the construction of the improvement; or

(2) conducted an environmental or land use study relating to the construction of the improvement.

Added by 1991 Tex. Laws, p. 1340, ch. 306, Sec. 1; amended by 1999 Tex. Laws, p. 598, ch. 138, Sec. 6.

Cross References:

Annual application not required, see Sec. 11.43(c).
Effect on rates, see Sec. 13.0435, Water Code.
Exemption application required, see Sec. 11.43(c).
Exemption application form, see Rule Sec. 9.415.
Filing deadline for property acquired after January 1, see Sec. 11.43(d).
Immediate qualification for property acquired after January 1, see Sec. 11.42(d).
Prorating taxes for exemption for part of tax year, see Secs. 26.112 and 26.113.
Constitutional authorization, see art. VIII, Sec. 1-k, Tex. Const.

Sec. 11.31. Pollution Control Property.

(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. 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. 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 Natural Resource Conservation Commission 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 property.

If the installation includes property that is not used wholly for the control of air, water, or land pollution, 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 property.

(d) Following submission of the information required by Subsection (c), the executive director of the Texas Natural Resource Conservation Commission 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 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 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 to the chief appraiser of the appraisal district for the county in which the property is located.

(e) Not later than the 20th day after the date of receipt of the letter issued by the executive director, the person seeking the exemption or the chief appraiser may appeal the executive director's determination to the Texas Natural Resource Conservation Commission. The commission shall consider the appeal at the next regularly scheduled meeting of the commission for which adequate notice may be given. The person seeking the determination and the chief appraiser may testify at the meeting. The commission may remand the matter to the executive director for a new determination or deny the appeal and affirm the executive director's determination. On issuance of a new determination, the executive director shall issue a letter to the person seeking the determination and provide a copy to the chief appraiser as provided by Subsection (d). A new determination of the executive director may be appealed to the commission in the manner provided by this subsection. A proceeding under this subsection is not a contested case for purposes of Chapter 2001, Government Code.

(f) The commission may charge a person seeking a determination that property is pollution control property an additional fee not to exceed its administrative costs for processing the information, making the determination, and issuing the letter required by this section.

(g) The commission shall adopt rules to implement this section. Rules adopted under this section must:

(1) establish specific standards for considering applications for determinations;

(2) be sufficiently specific to ensure that determinations are equal and uniform; and

(3) allow for determinations that distinguish the proportion of property that is used to control, monitor, prevent, or reduce pollution from the proportion of property that is used to produce goods or services.

(h) The executive director may not make a determination that property is pollution control property unless the property meets the standards established under rules adopted under this section.

(i) A person seeking an exemption under this section shall provide to the chief appraiser a copy of the letter issued by the executive director of the Texas Natural Resource Conservation Commission under Subsection (d) determining that the facility, device, or method is used wholly or partly as pollution control property. The chief appraiser shall accept a final determination by the executive director as conclusive evidence that the facility, device, or method is used wholly or partly as pollution control property.

(j) This section does not apply to a facility, device, or method for the control of air, water, or land pollution that was subject to a tax abatement agreement executed before January 1, 1994.

Added by 1993 Tex. Laws, p. 1324, ch. 285, Sec. 1; amended by HB 3121, 77th Tex. Leg., 2001, effective September 1, 2001.

Cross References:

Annual application not required, see Sec. 11.43(c).
Constitutional authorization, see art. VIII, Sec. 1-l, Tex. Const.
Environmental response appraisal adjustment, see Sec. 23.14.
Exemption application required, see Sec. 11.43(c).
Rollback tax rate additional protection, see Sec. 26.045.
Tax rate calculation process, see Sec. 26.012.
Model application form, see Rule Sec. 9.415.

Notes:

Add-on pollution-control devices and methods of production that limit pollution at new facilities are entitled to exemption under Tax Code Section 11.31. The Texas Natural Resource Conservation Commission must administer the tax exemption to grant exemptions to only that portion of property that actually controls pollution. Pollution-reducing production equipment may receive only a partial tax exemption. Section 11.31 makes no distinction between property controlling pollution generated by an existing facility or by a new facility. The statute contains only one limitation: to be exempt, property must be acquired after January 1, 1994, the statute's effective date. Op. Tex. Att'y Gen. No. JC-372 (2001).

A commercial business performing pollution control or abatement services is not entitled to a property tax exemption for its pollution control property. The pollution control exemption was not intended to give tax relief to those who are primarily engaged in the commercial business of pollution control but to give relief to businesses compelled by law to install or acquire pollution control equipment which generates no revenue for such businesses. Tex. Att'y Gen. LO-96-128 (1996).

Sec. 11.32. Certain Water Conservation Initiatives.

The governing body of a taxing unit by official action of the governing body adopted in the manner required by law for official actions may exempt from taxation part or all of the assessed value of property on which approved water conservation initiatives, desalination projects, or brush control initiatives have been implemented. For purposes of this section, approved water conservation, desalination, and brush control initiatives shall be designated pursuant to an ordinance or other law adopted by the governing unit.

Added by 1997 Tex. Laws, p. 3663, ch 1010, Sec. 5.11; amended by SB 2, 77th Tex. Leg., 2001, effective September 1, 2001.

Cross References:

Annual application required, see Sec. 11.43(a).
Constitutional authorization, see art. VIII, Sec. 1-m, Tex. Const.
Model application form, see Rule Sec. 9.415.

Sec. 11.33. Raw Cocoa and Green Coffee Held in Harris County.

(a) A person is entitled to an exemption from taxation of raw cocoa and green coffee that the person holds in Harris County.

(b) An exemption granted under this section, once allowed, need not be claimed in subsequent years, and the exemption applies to all raw cocoa and green coffee the person holds until the cocoa's or the coffee's qualification for the exemption changes. The chief appraiser may, however, require a person who holds raw cocoa or green coffee for which an exemption in a prior year has been granted to file a new application to confirm the cocoa's or the coffee's current qualification for the exemption by delivering a written notice that a new application is required, accompanied by an appropriate application form, to the person.

Added by SB 1574, 77th Tex. Leg., 2001, effective January 1, 2002.

Cross References:

Application required, see Sec. 11.43.
Constitutional authorization, see art. VIII, Sec. 1-n, Tex. Const.
Model application form, see Rule Sec. 9.415.

[Sections 11.34 to 11.40 reserved for expansion]