Relating to the authorization of school district ad valorem tax incentives for historic redevelopment and economic development.
Impact
The bill is set to alter state laws regarding the taxation of properties designated for redevelopment. Through the introduction of exemptions from ad valorem property taxes, the legislation encourages school districts to participate in revitalization activities without negatively impacting their funding from the state. By allowing school districts to offer tax incentives for qualified investments that meet specified criteria, this bill empowers local government entities to better play their role in fostering economic development and combating urban decay, ensuring that growth is balanced and sustainable.
Summary
House Bill 1853 proposes the creation of the Historic Redevelopment and Economic Development Act, which aims to authorize school districts to offer ad valorem tax incentives as a means to support historic and economic revitalization projects. This legislation recognizes the need for greater involvement from school districts in economic development initiatives because school district taxes constitute a significant portion of the overall property tax burden. By facilitating these tax incentives, the bill aims to attract capital investments in underserved historic areas, thereby stimulating economic growth and enhancing local communities despite the relatively high costs associated with such redevelopment efforts compared to new development.
Contention
Notably, there are concerns regarding potential abuse of the property tax exemption provisions of the bill. Critics fear that designated property owners may attempt to circumvent limitations by pooling investments to qualify for tax benefits or exaggerating the claims about potential job losses tied to redevelopment. To mitigate these concerns, the legislation includes measures for school districts to adhere strictly to selection criteria and maintain transparency and accuracy in their approval processes. Overall, the effectiveness of HB1853 will rely on the balancing act between encouraging development and ensuring fiscal responsibility in the administration of tax incentives.
Relating to the establishment of the Texas Mircale Act (TMA), allowing for certain fees, authorizing certain ad valorem tax incentives for economic development, specifically certain tax relief from school district taxes for certain corporations and limited liability companies that make large investments that create jobs in this state, to authorizing the imposition of certain fees, and the repeal of Chapter 313 of Texas Tax Code and the Economic Development Act of the 77th Legislature.
Relating to the duty of a school district to enter into an ad valorem tax abatement agreement under the Property Redevelopment and Tax Abatement Act for certain property.
Relating to the creation of the Northeast Houston Redevelopment District; providing authority to issue bonds; providing authority to impose assessments or fees.
Relating to the approval and creation of the Williamson County Development District No. 1; and to the administration, powers, duties, operation, and financing of the district, including the authority to impose an assessment, a tax, and issue bonds.
Relating to the creation of the Williamson County Development District No. 1; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.
Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.
Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.
Relating to the duty of a school district to enter into an ad valorem tax abatement agreement under the Property Redevelopment and Tax Abatement Act for certain property.
Relating to certain acts and proceedings of certain local governments, including those related to tax increment financing, and the validity of certain acts and proceedings.