Texas House Bill HB3653

Texas 2023 - 88th Regular

• Filed: 3/6/23

Caption

Relating to the taxation of border security infrastructure.

Impact

Should HB 3653 be passed, it would amend the Texas Tax Code by adding provisions that identify border security infrastructure and outline eligibility for the tax exemption. This legislative change is intended to provide financial incentives to property owners engaged in border security efforts, effectively reducing their tax liability based on the value of their infrastructure investments. The implications of this bill may affect local and state budgets, particularly concerning tax revenues, as property values tied to border security efforts would be exempt from taxation.

Summary

House Bill 3653 aims to enact tax exemptions for properties that install or construct border security infrastructure in Texas. Specifically, the bill introduces an exemption for the appraised value of real property owned by individuals or entities that pertain to such infrastructure, which may include walls, fences, roads, and various technological installations designed to monitor and control the movement across the Texas-Mexico border. The bill seeks to encourage investment in border security by alleviating the tax burden associated with such developments.

Sentiment

The sentiment surrounding the bill may be inferred as generally supportive among those focused on border security, including lawmakers and organizations advocating for enhanced security measures. Supporters argue that the tax exemption is a vital step to bolster security and facilitate necessary infrastructure development without imposing heavy financial burdens on property owners. Conversely, there may be skepticism or concern from those who view the bill as prioritizing border security over other pressing state issues, thereby fostering a somewhat polarized environment regarding its potential passage.

Contention

A point of contention regarding HB 3653 stems from the definition of 'border security infrastructure' and the potential for misuse of tax exemptions for other unrelated property developments. Critics could argue that broad definitions may allow for tax benefits that do not directly relate to security improvements. Additionally, there might be a debate between advocates of local governance who express concerns that such statewide tax exemptions could undermine local fiscal controls and planning efforts, as municipalities may lose out on potential revenue sources.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: New Section