The Tax Relief for Pollution Control Property Program, formerly known as Proposition 2, provides tax exemptions on property used for pollution control purposes. The intent of this amendment is to ensure capital investments undertaken to comply with environmental mandates do not result in an increase in property taxes.
The Process
The legislation established a two-step process for obtaining the property-tax exemption. First, an application is made to the TCEQ for a ‘positive use’ determination that the property is used for pollution control purposes. Once approved, the facility applies for a property tax exemption with their local appraisal district.
Special Note – Applicants should know that the term “property” is meant to include both real and personal material. It can consist of devices, equipment, methods or land. The exemption includes trucks and vehicles used solely for pollution control such as surface watering trucks and spill response vehicles.
Eligible Property
Property that is installed wholly or partly for pollution control purposes is eligible. It is the responsibility of the applicant to demonstrate that the equipment or property is used for pollution control purposes.
A thorough evaluation of your facility and an accurate presentation of valid pollution control equipment is essential to obtaining the tax relief you deserve under the law.
AARC has the knowledge and the experience to ensure that your eligible property is fully credited and your tax bill is reduced.