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The Texas Commission on Environmental Quality (TCEQ) recently denied Valero Energy Corporation's request for a property tax exemption on hydrotreaters as pollution control equipment at six refineries.  Valero has twenty days from the date of TCEQ's denial on December 14, 2011, to appeal the decision.  The request could have generated refunds from school districts and municipalities of up to $92 million.  The TCEQ ruled that the applications did not demonstrate that the hydrotreating equipment provide a partial environmental benefit at the sites listed in the applications. Valero's request for property tax exemptions on hydrotreater equipment has been pending since 2007. 

TCEQ has 10 other similar requests pending.  According to estimates, school districts and municipalities could be forced to refund up to $135 million in property taxes they have already collected, if the pending requests are approved. 

To access the TCEQ's recent ruling denying property tax exemptions on hydrotreaters, click  on the link below.

TCEQ Hydrotreater Ruling (416.47 KB)