Texas Senate Bill SB1311

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/7/09
• Voted on by Senate: 4/16/09
• Out of House Committee: 5/20/09

Caption

Relating to the authority of the governing body of a municipality or the commissioners court of a county to enter into an ad valorem tax abatement agreement.

Impact

If enacted, SB1311 would directly impact local taxation policies by granting municipalities and counties expanded powers related to tax incentives for renewable energy projects. This could foster an environment conducive to the growth of the renewable energy sector in Texas, which may lead to increased investment and economic benefits within the specified regions. By incentivizing renewable energy development, the bill aligns with broader state and national goals regarding sustainable energy sources and climate change mitigation.

Summary

SB1311 aims to enhance the authority of county commissioners courts in Texas regarding tax abatements for property owners involved in renewable energy electric generation. The proposed legislation allows for the execution of ad valorem tax abatement agreements with lessees of taxable real property located in designated reinvestment zones. This means that counties could provide financial incentives by exempting all or part of the value of both tangible personal property and real property improvements associated with renewable energy generators from taxation.

Contention

The introduction of SB1311 may bring about discussions regarding the economic implications of tax abatements on local budgets, particularly concerning concerns from municipalities that rely heavily on property taxes for funding local services. While proponents argue that such incentives will lead to substantial economic growth and job creation, critics may contend that it exacerbates potential losses in local revenue, undermining essential services funded by property taxes. Additionally, the bill could reignite debates around the balance of local and state taxation powers.