BILL ANALYSIS Senate Research Center S.B. 1778 81R12446 JD-D By: Harris Economic Development 4/4/2009 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT The Texas Economic Development Act created a mechanism for school districts to offer property tax relief to businesses undertaking a major economic development project in their community. Under this Act, a school district has the authority to limit the appraised property value of certain eligible projects. Data centers are an important source of high-paying jobs in Texas. The central time zone in which Texas is situated appeals to those looking to locate a data center and the projects generate millions in capital investment. However, data centers are not eligible for limitations on appraised values. As proposed, S.B. 1778 adds data centers to the list of projects eligible for limitations on appraised value. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 313.024(b), Tax Code, by requiring the entity to use the property in connection with certain purposes, including as a data center to be eligible for a limitation on appraised value under this subchapter. Makes nonsubstantive changes. SECTION 2. Amends Section 313.024(e), Tax Code, by adding Subdivision (5) to define "data center." SECTION 3. Effective date: upon passage or September 1, 2009.
BILL ANALYSIS
Senate Research Center S.B. 1778
81R12446 JD-D By: Harris
Economic Development
4/4/2009
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The Texas Economic Development Act created a mechanism for school districts to offer property tax relief to businesses undertaking a major economic development project in their community. Under this Act, a school district has the authority to limit the appraised property value of certain eligible projects.
Data centers are an important source of high-paying jobs in Texas. The central time zone in which Texas is situated appeals to those looking to locate a data center and the projects generate millions in capital investment. However, data centers are not eligible for limitations on appraised values.
As proposed, S.B. 1778 adds data centers to the list of projects eligible for limitations on appraised value.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 313.024(b), Tax Code, by requiring the entity to use the property in connection with certain purposes, including as a data center to be eligible for a limitation on appraised value under this subchapter. Makes nonsubstantive changes.
SECTION 2. Amends Section 313.024(e), Tax Code, by adding Subdivision (5) to define "data center."
SECTION 3. Effective date: upon passage or September 1, 2009.