Monitoring the Session

HB 3637

bill letting counties exempt rainwater and graywater systems from tax

Did not pass

Verdict: No flags

No flagsInitial review
Rep. Ellen TroxclairRHouse 19

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

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.

Caption from analyzed text · version I.

Summary

Once a county adopts it, cities and school districts are bound too.

The bill lets a county commissioners court vote to exempt from property tax the added value a rainwater harvesting or graywater system brings to a person's property. Once a county adopts the exemption, it binds every taxing unit that taxes that property, including cities and school districts. It takes effect January 1, 2026, only if voters approve a matching constitutional amendment, and applies to tax years starting on or after that date.

Labels

Labels: ACROSS THE AISLE. Joint authors: 4 Republicans, 1 Democrat. Party as the Legislative Reference Library lists it for the 89th Legislature.GOT HALFWAY. Passed the House on May 14, 2025. Died in the Senate: received, never referred to a committee.

Receipt

The receipt

89R-HB3637 · 2025-03-03

SOLD BY

Rep. Ellen TroxclairRHouse 19 Rep. Carrie IsaacRHouse 73 Rep. Erin ZwienerDHouse 45

+ 2 more authors, 2 coauthors

ITEM

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.

WHAT IT DOES

Once a county adopts it, cities and school districts are bound too.

The bill lets a county commissioners court vote to exempt from property tax the added value a rainwater harvesting or graywater system brings to a person's property. Once a county adopts the exemption, it binds every taxing unit that taxes that property, including cities and school districts. It takes effect January 1, 2026, only if voters approve a matching constitutional amendment, and applies to tax years starting on or after that date.

CHARGES

[ ] NONE FOUND

TOTAL

No first-year general revenue figure available here.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 28, 2025

Passage of the bill would authorize the commissioners court of a county to adopt an exemption from ad valorem taxation of the portion of the appraised value of a person's property that is attributable to the installation in or on the property of a rainwater harvesting or graywater system that would apply to all taxing units that tax the property. As a result, taxable property values could be reduced and the related costs to the Foundation School Fund could be increased through the operation of the school finance formulas.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Ways & Means
  4. Considered in formal meeting
  5. Reported favorably w/o amendment(s)
  6. Comte report filed with Committee Coordinator
  7. Committee report distributed
  8. Committee report sent to Calendars
  9. Considered in Calendars
  10. Placed on General State Calendar
  11. Read 2nd time
  12. Passed to engrossment
  13. Record vote RV#2344
  14. Statement(s) of vote recorded in Journal
  15. Read 3rd time
  16. Passed
  17. Record vote RV#2436
  18. Statement(s) of vote recorded in Journal
  19. Reported engrossed
  20. Received from the House
FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 95 yea · 43 nay

Sources

House: Final passage · May 14, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Ellen Troxclair

Donors

Texans for Lawsuit Reform PAC$100KTexans for Lawsuit Reform PC$10KTexas REALTORS Political Action Committee$5K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 29, 2024 to Oct 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$100,000.00

Texans for Lawsuit Reform PAC

$100,000.00

Cash
$100,000.00
Paid by others
$0.00
Total
$100,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jul 14, 2025 to Feb 3, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101031227, 101040659.

Texans for Lawsuit Reform PC$10,000.00

Texans for Lawsuit Reform PC

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Oct 2, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Oct 2, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101072162.

Texas REALTORS Political Action Committee$5,083.34

Texas REALTORS Political Action Committee

$5,083.34

Cash
$5,000.00
Paid by others
$83.34
Total
$5,083.34
advertising $83.34

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 12, 2024 to Sep 25, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100982032, 101031227, 101072162.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$100,000.00

Cash
$100,000.00
Paid by others
$0.00
Total
$100,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jul 14, 2025 to Feb 3, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101031227, 101040659.

×

Texans for Lawsuit Reform PC

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Oct 2, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Oct 2, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101072162.

×

Texas REALTORS Political Action Committee

$5,083.34

Cash
$5,000.00
Paid by others
$83.34
Total
$5,083.34
advertising $83.34

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 12, 2024 to Sep 25, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100982032, 101031227, 101072162.

Votes2

House May 14, 2025

Yea
95
Nay
43
Present, not voting
2
Absent
7
Excused
3
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2436

HB 3637 was passed by (Record 2436): 95 Yeas, 43 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 95 (published)
  • Nay: 43 (published)
  • Present, not voting: 2 (published)
  • Absent: 7 (derived from named list)
  • Excused: 3 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 13, 2025

Yea
94
Nay
42
Present, not voting
1
Absent
2
Excused
11
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2344

HB 3637 was passed to engrossment by (Record 2344): 94 Yeas, 42 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 94 (published)
  • Nay: 42 (published)
  • Present, not voting: 1 (published)
  • Absent: 2 (derived from named list)
  • Excused: 11 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Fiscal

No first-year general revenue figure available here.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 28, 2025

Passage of the bill would authorize the commissioners court of a county to adopt an exemption from ad valorem taxation of the portion of the appraised value of a person's property that is attributable to the installation in or on the property of a rainwater harvesting or graywater system that would apply to all taxing units that tax the property. As a result, taxable property values could be reduced and the related costs to the Foundation School Fund could be increased through the operation of the school finance formulas.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Mar 3, 2025

05/14/2025 S Received from the House

Texas Legislature Online · Introduced · House Committee Report · Engrossed

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Coauthors
Keresa RichardsonRHouse 61 Joanne ShofnerRHouse 11

House committee · Ways & Means · Committee vote 11 aye, 0 nay, 2 absent · Out of committee

Companion

SB 1633 by Campbell (identical)

HB 1256 by Zwiener (duplicate)

Subjects

County Government--General

Taxation--Property-Appraisals & Appraisal Districts

Taxation--Property-Exemptions

Water--Conservation (I097L)

Water--General

Text

The text as introduced · 293 words

89R1570 MLH-F

By: Troxclair
H.B. No. 3637

A BILL TO BE ENTITLED

AN ACT

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.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by

adding Section 11.325 to read as follows:

Sec. 11.325. WATER CONSERVATION SYSTEMS. (a) In this

section, "graywater" has the meaning assigned by Section 341.039,

Health and Safety Code.

(b) The commissioners court of a county by order may adopt

an exemption from taxation of the portion of the appraised value of

a person's property that is attributable to the installation in or

on the property of a rainwater harvesting or graywater system. An

exemption adopted by a commissioners court under this section

applies to the taxation of property by each taxing unit that taxes

the property.

SECTION 2. This Act applies only to ad valorem taxes imposed

for a tax year beginning on or after the effective date of this Act.

SECTION 3. This Act takes effect January 1, 2026, but only

if the constitutional amendment to authorize the commissioners

court of a county to exempt from ad valorem taxation by each

political subdivision that taxes the property the portion of the

assessed value of a person's property that is attributable to the

installation in or on the property of a rainwater harvesting or

graywater system is approved by the voters. If that amendment is

not approved by the voters, this Act has no effect.