Texas HB1256 allows county commissioners courts to exempt certain water conservation systems from ad valorem taxation.

Texas HB1256 amends the Tax Code to allow county commissioners courts to exempt from ad valorem taxation the portion of a property's appraised value attributable to rainwater harvesting or graywater systems. This exemption applies to all taxing units that tax the property. The bill takes effect January 1, 2026, contingent on voter approval of a constitutional amendment authorizing this exemption. If the amendment is not approved, the bill has no effect.

Texas HB1256 allows county commissioners courts to exempt certain water conservation systems from ad valorem taxation.

Texas HB1256 amends the Tax Code to allow county commissioners courts to exempt from ad valorem taxation the portion of a property's appraised value attributable to rainwater harvesting or graywater systems. This exemption applies to all taxing units that tax the property. The bill takes effect January 1, 2026, contingent on voter approval of a constitutional amendment authorizing this exemption. If the amendment is not approved, the bill has no effect.