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.

SB 1633 would allow Texas counties to exempt from property tax the portion of a home's value tied to rainwater harvesting or graywater systems. Property owners installing these water conservation systems would see reduced property taxes, as the exemption applies to the specific value added by the systems, not the entire property. The exemption must be adopted by a county commissioners court and applies to all taxing entities (like cities or school districts) that tax the property. This bill requires voter approval of a constitutional amendment before it can take effect in 2026.