Texas 2015 - 84th Regular

Texas Senate Bill SB1821

Filed
 
Out of Senate Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to a local option exemption from ad valorem taxation of a portion of the appraised value of real property of a business that employs honorably discharged veterans.

Impact

If enacted, the legislation will modify the taxation landscape for businesses employing veterans, directly impacting state tax revenue. Specifically, the bill allows an exemption of up to $15,000 from the appraised property value per employed veteran, significantly enhancing the financial viability of employing former military members. This aligns with broader efforts to reduce unemployment among veterans and to offer them meaningful reintegration opportunities into civilian life. However, as this exemption is optional, its implementation will depend on local government determinations, potentially leading to varied impacts across different areas in Texas.

Summary

SB1821 proposes a local option exemption from ad valorem taxation for businesses that hire honorably discharged veterans. The bill aims to encourage the employment of veterans by providing financial incentives for businesses that meet certain criteria. Specifically, a qualifying business can receive a tax exemption on a portion of the appraised value of its real property when it hires at least one veteran for full-time employment for a minimum of twelve consecutive months. This benefit can be adopted by the governing body of the respective taxing unit, thus allowing flexibility in implementation across different regions of the state.

Sentiment

Overall, there appears to be a favorable sentiment surrounding SB1821, particularly among veteran advocacy groups and business organizations that view it as a substantial contribution to promote veteran employment. The sentiment highlights a recognition of the sacrifices made by veterans and a desire to create incentives that might support their transition to civilian careers. However, there may be concerns voiced by those skeptical of tax exemptions and their potential impact on local revenues, as they may perceive this as a diversion of essential funds from public services.

Contention

Notable points of contention regarding SB1821 include the potential financial implications for local governments and whether the benefits of hiring veterans can offset the loss in tax revenue. Some critics might argue that while the intent of the bill is commendable, it risks creating disparities in funding for local services, as the ability for municipalities to adopt these exemptions could lead to uneven execution throughout the state. Furthermore, there is a dialogue about the long-term sustainability of such tax exemptions and their actual efficacy in increasing veteran employment rates.

Companion Bills

TX SJR60

Enabling for Proposing a constitutional amendment authorizing the governing body of a political subdivision to adopt a local option exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the market value of real property of a business that employs honorably discharged veterans.

TX HB2043

Similar Relating to a local option exemption from ad valorem taxation of a portion of the appraised value of real property of a business that employs honorably discharged veterans.

Similar Bills

No similar bills found.