Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Impact
The implications of SB5 on state laws include changes to the property tax framework, especially concerning tangible assets owned by businesses. This bill is expected to enhance the economic environment for businesses, granting them a $25,000 exemption per location on property assessed for income production. If passed, it also highlights a shift toward greater incentivization of localized business growth, representing a potential increase in overall state economic activity.
Summary
Senate Bill 5, also known as SB5, focuses on providing significant property tax relief to businesses in Texas by introducing an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property utilized for income generation. The bill also incorporates a franchise tax credit designed to offset the burden of certain related ad valorem taxes. By targeting support particularly at small and medium businesses, the intent is to alleviate financial pressures and promote reinvestment in communities.
Sentiment
Overall sentiment regarding Senate Bill 5 is largely positive among supporters, particularly within the business community. Proponents argue that this legislation will significantly support job creation and economic development through tax relief, which is vital in a competitive market. Conversely, there are concerns from certain stakeholders about potential revenue reductions for local governments and how the bill might disproportionately favor larger enterprises over smaller, more vulnerable businesses.
Contention
Notable points of contention include worries raised about the impact of reduced property taxes on local governments' revenue streams, as this could hinder municipalities' ability to fund essential services. Additionally, the intricacies of applying and qualifying for tax credits may pose compliance challenges for some businesses, offering a mixed reception among diverse economic groups. The overall debate highlights the balance between fostering a robust business environment and maintaining sustainable public funding mechanisms.
Enabling for
Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation a portion of the market value of tangible personal property a person owns that is held or used for the production of income.
TX SJR2
Enabling for
Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation a portion of the market value of tangible personal property a person owns that is held or used for the production of income.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property a person owns that is held or used for the production of income.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property a person owns that is held or used for the production of income.
Relating to the appraisal for ad valorem tax purposes of tangible personal property held for sale at retail and a franchise tax credit based on the ad valorem taxes paid on such property.
Relating to the appraisal for ad valorem tax purposes of tangible personal property held for sale at retail and a franchise tax credit based on the ad valorem taxes paid on such property.
Relating to an exemption from ad valorem taxation of all or a portion of the value of a person's income-producing tangible personal property depending on the value of the property.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to the appraisal for ad valorem tax purposes of tangible personal property held for sale at retail and a franchise tax credit based on the ad valorem taxes paid on such property.
Relating to the appraisal for ad valorem tax purposes of tangible personal property held for sale at retail and a franchise tax credit based on the ad valorem taxes paid on such property.
Relating to a study of the feasibility and benefits to this state of abolishing the property tax assistance division of the office of the comptroller of public accounts and transferring its powers and duties to an independent agency.
Relating to abolishing the property tax assistance division of the office of the comptroller of public accounts and transferring its powers and duties to the newly created State Property Tax Board.