Texas Senate Bill SB1458

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
• Voted on by House: 5/27/09
• Governor Action: 6/19/09
• Enrolled: 5/30/09
• Passed: 6/19/09

Caption

Relating to the authority of certain taxing units to enter into an ad valorem tax abatement agreement.

Impact

The amendments suggested in SB1458 allow for a broader scope of agreements, extending the ability to exempt portions of both real and personal property taxes. It specifically includes provisions for lessees and owners of leasehold interests in tax-exempt properties, thereby broadening the financial instruments available to counties when seeking to attract businesses to their areas. The bill's implications could significantly influence economic development strategies at the local level and how counties manage their tax incentives to spur growth.

Summary

SB1458 is a legislative proposal aimed at expanding the authority of commissioners courts in Texas concerning ad valorem tax abatement agreements. The bill proposes amendments to Section 312.402 of the Tax Code, which permits commissioners courts to enter agreements with owners or lessees of taxable real property situated in designated reinvestment zones. This legislative change intends to provide greater flexibility in how local governments can incentivize development within their jurisdictions by offering tax exemptions.

Contention

Notable points of contention surrounding SB1458 may arise from potential disagreements between local governments and stakeholders regarding the distribution of tax burdens and incentives. While proponents argue it will facilitate easier negotiations and attract more businesses, critics might express concerns over the equity of tax relief opportunities, especially those regions that might not have the resources to participate equivalently in such abatement schemes. The bipartisan nature of tax strategies inherent in such local agreements is likely to be a focal point of debate in the legislative process.