Tax Relief for Pollution-Control Properties

• Tax Relief for Pollution Control: Hot Topics
  Current issues related to the Tax Relief for Pollution Control Program.

Program Overview

On November 2, 1993, Texas voters approved a constitutional amendment (Proposition 2) exempting certain pollution control property/equipment from property taxation. This amendment added Section (§) 1-l to Article 8 of the Texas Constitution. Legislation to implement the amendment was approved in House Bill (HB) 1920 during the regular session of the 73rd Legislature. This legislation added §11.31 to the Texas Tax Code (TTC). The intent of the constitutional amendment was to ensure that capital expenditures undertaken to comply with environmental rules did not increase a facility’s property taxes.

The TCEQ adopted regulations under Title 30 Texas Administrative Code, Chapter 17 (30 TAC 17) to establish the procedures and mechanisms for obtaining a use determination. The TCEQ is responsible for determining whether a facility uses certain property, in whole or in part, for pollution control (referred to as a use determination) and whether the facility may apply for a property-tax exemption from its local appraisal district.

How to Obtain a Tax Exemption for Pollution-Control Property

1. Apply for and receive from the TCEQ a positive use determination that the property is used for pollution control purposes.
2. File the use determination and Form 50-248 with the local appraisal district(s) to receive a property-tax exemption.

Important: The TCEQ does not file the exemption; that is the applicant's responsibility. The exemption request must be filed by April 30th to apply to the current tax year.

To be eligible for a tax exemption the property must meet the following three standards:

• It must be used wholly or partly for preventing, monitoring, controlling, or reducing air, water, or land pollution.
• It must have been installed in order to meet or exceed the requirements of a rule or regulation adopted by a federal, state, or local political subdivision of Texas.
• It must provide an environmental benefit at the site.

If the property meets these three standards, a technical review of the application will be conducted to determine if a positive use determination should be issued.

Program Forms and Instructions

The Use Determination for Pollution Control Property Application, Form TCEQ-00611, and the application review process have recently been updated to reflect the changes to 30 TAC 17 adopted by the TCEQ in 2010. The updated application has been designed to obtain all the necessary information from the applicant that the TCEQ needs to determine the percentage of use applicable to the pollution control property.

Links with this symbol indicate the file is provided in PDF format.

• Use Determination for Pollution Control Property Application, Form TCEQ-00611, in Word (or PDF and Instructions


• Property-Tax Exemptions for Pollution Control Property, RG-461
  This TCEQ regulatory guidance document is intended as guidance for persons seeking a property-tax exemption for capital expenditures for pollution control property. The document explains how to determine whether you have property/equipment that qualifies for a tax exemption and how to apply to the TCEQ to ultimately obtain the exemption.

Additional Program Information

• Tier I Table and Expedited Review List
• Appealing a Determination
• The Tax Relief for Pollution Control Program Advisory Committee
• 2010 Annual Report

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Contact for Assistance

TCEQ
Tax Relief for Pollution-Control Property, MC 110
P.O. Box 13087
Austin, TX 78711-3087

E-mail: txrelief@tceq.texas.gov
Phone: 512-239-4900
Fax: 512-239-6188