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SB 1633

Relating to the authority of a county commissioners court to adopt an exemption from ad valorem taxation by each taxing unit that taxes the property of the portion of the appraised value of a person's property that is attributable to the installation in or on the property of certain water conservation systems.

89th Legislature (2025) Introduced by Donna Campbell and 2 co-sponsors

Texas bill allowing counties to grant property tax exemptions for water conservation system installations across all taxing units to reduce tax burden on efficiency improvements.

Referred to Ways & Means
#countygovernment--general(i0096) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793) #water--conservation(i097l) #water--general(i0885)
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Bill Summary · SB 1633

Legislative bill overview

SB 1633 would allow county commissioners courts in Texas to adopt property tax exemptions for the portion of property value added by water conservation system installations. This exemption would apply across all taxing units (school districts, municipalities, special districts) that tax the property, rather than requiring individual exemptions from each entity.

Why is this important

Water conservation improvements like rainwater harvesting systems, drought-resistant landscaping, or efficient irrigation typically increase property values, which triggers higher property tax assessments. This bill would reduce the tax burden on homeowners and businesses investing in water efficiency, potentially incentivizing water conservation during a time of drought concerns in Texas while affecting local government tax revenues.

Potential points of contention

  • Revenue impact on local entities: School districts, municipalities, and other taxing units would lose tax revenue from exempted property values, potentially requiring service cuts or tax rate increases elsewhere
  • Implementation complexity: Coordinating exemptions across multiple taxing jurisdictions within a county could create administrative challenges and potential inconsistencies
  • Defining "water conservation systems": The bill's scope depends on which installations qualify (standard systems only, or experimental technologies?), which could affect uptake and equity across different property types
  • Equity concerns: Exemptions may disproportionately benefit wealthier property owners who can afford expensive conservation upgrades, while renters and low-income homeowners cannot benefit

Compiled from official sources — confirm details with the bill’s official record.

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