Texas House Bill HJR1

Texas 2021 - 87th 3rd C.S.

Caption

Proposing a constitutional amendment to authorize the legislature to provide for a credit against the ad valorem taxes imposed on property owned by a person who makes a donation to the state for the purpose of border security and to provide for the reimbursement of political subdivisions for the revenue loss incurred as a result of the credit.

Impact

If enacted, HJR1 would amend Article VIII of the Texas Constitution, adding Section 1-q that establishes the framework for these tax credits. The legislature would have the authority to set eligibility requirements and determine how the tax credits are allocated among political subdivisions that impose property taxes. Furthermore, the legislature could authorize the use of state funds to reimburse local political subdivisions for the loss of revenue incurred due to these tax credits. This could have significant ramifications for local budgets, especially in jurisdictions heavily reliant on property tax revenue.

Summary

HJR1 proposes a constitutional amendment that would allow the Texas legislature to establish a tax credit against ad valorem taxes for property owners who donate to the state for border security purposes. The amendment seeks to incentivize private donations by offering tax relief, which supporters argue could enhance funding for border security efforts without placing additional burdens on state resources. This approach is intended to mobilize community support by aligning financial incentives with state security interests.

Contention

The proposal raises several points of contention among stakeholders. Proponents of HJR1 suggest that it is a necessary measure to enhance border security financing, leveraging state resources more effectively while encouraging civic involvement in supporting state initiatives. Conversely, opponents may argue that such tax credits could undermine local government funding by diverting critical resources away from municipal services. They may also express concerns regarding the prioritization of border security over essential local needs and the overall feasibility of balancing state reimbursements with practical budgeting.