HB3390 - Relating to an exemption from ad valorem taxation of the amount of the appraised value of real property that arises from the installation or construction on the property of a generator that is primarily for the production and distribution of energy for on-site use.

  89R8195 CS-D     By: Landgraf H.B. No. 3390       A BILL TO BE ENTITLED   AN ACT   relating to an exemption from ad valorem taxation of the amount of   the appraised value of real property that arises from the   installation or construction on the property of a generator that is   primarily for the production and distribution of energy for on-site   use.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by   adding Section 11.38 to read as follows:           Sec.   11.38.     ELECTRIC GENERATORS. (a)   In this section,   "electric generator" means a device that converts mechanical energy   to electrical energy and is:                 (1)     powered by natural gas, liquefied petroleum gas,   diesel fuel, biodiesel fuel, or hydrogen;                 (2)     fully enclosed in an integral   manufacturer-supplied sound attenuating enclosure; and                 (3)     connected to the main electrical panel of a   structure by a manual or automatic transfer switch.           (b)     A person is entitled to an exemption from taxation of   the amount of appraised value of real property owned by the person   that arises from the installation or construction on the property   of an electric generator that is primarily for production and   distribution of energy for on-site use.           (c)     The comptroller shall develop guidelines to assist   local officials in the administration of this section.          SECTION 2.  Section 11.43(c), Tax Code, is amended to read as   follows:          (c)  An exemption provided by Section 11.13, 11.131, 11.132,   11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,   11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,   11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, 11.35, [ or ]   11.36, or 11.38 once allowed, need not be claimed in subsequent   years, and except as otherwise provided by Subsection (e), the   exemption applies to the property until it changes ownership or the   person's qualification for the exemption changes. However, except   as provided by Subsection (r), the chief appraiser may require a   person allowed one of the exemptions in a prior year to file a new   application to confirm the person'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 previously allowed the exemption. If the person previously   allowed the exemption is 65 years of age or older, the chief   appraiser may not cancel the exemption due to the person's failure   to file the new application unless the chief appraiser complies   with the requirements of Subsection (q), if applicable.          SECTION 3.  Section 11.38, Tax Code, as added by this Act,   applies only to an ad valorem tax year that begins on or after the   effective date of this Act.          SECTION 4.  It is the intent of the 89th Legislature, Regular   Session, 2025, that the amendments made by this Act be harmonized   with another Act of the 89th Legislature, Regular Session, 2025,   relating to nonsubstantive additions to and corrections in enacted   codes.          SECTION 5.  This Act takes effect January 1, 2026, but only   if the constitutional amendment proposed by the 89th Legislature,   Regular Session, 2025, authorizing the legislature to exempt from   ad valorem taxation the amount of the appraised value of real   property that arises from the installation or construction on the   property of a generator that is primarily for the production and   distribution of energy for on-site use is approved by the voters.   If that amendment is not approved by the voters, this Act has no   effect.