House to look at refiners’ tax break

House Ways and Means Chairman Rene Oliveira said today that his committee will take a close look at a controversial refinery tax break proposal with large budgetary implications for some school districts and state government. Oliveira, DBrownsville, said he would draft legislation to address the problem, if necessary.

Valero Energy Corp., one of the country’s largest oil refiners, is asking the Texas Commission on Environmental Quality to give the company a full property tax break on certain pieces of equipment at five refineries it operates in Texas.

Opponents argue that the break, if granted, would expand the rules for an existing tax exemption allowed for equipment that reduces pollution at the refinery. They say the Valero equipment in question, which is used to remove sulfur in the production of gasoline and diesel, reduces pollution from auto tailpipes, but not at the refinery.

Since the decision is in the hands of the business friendly TCEQ, Oliveria may very well have to follow through on his promise of legislation. If TCEQ commissioners – all appointees of Gov. Rick Perry – grant Valero’s application – and an article in the Houston Chronicle last week reported that they want to give Valero some tax relief – school districts and other local governments stand to lose millions of dollars in property tax revenue.

David Thompson, an attorney who represents school districts, told the Ways and Means Committee in a public hearing today that four school districts in Harris County alone – Houston ISD, Goose Creek ISD, Pasadena ISD and Deer Park ISD – would lose $13.6 million in tax revenue for 2010 if the TCEQ were to grant the proposed exemption to all refineries in Harris County.

Part of the lost revenue would be made up by the state under the existing school finance law, although the Legislature is expected to start its session next January in a deep budgetary hole, and part would be eaten by local districts, Thompson said.

0 Comments

There are no comments yet

Leave a comment

Your email address will not be published. Required fields are marked *