Proposing a constitutional amendment authorizing the legislature to provide for a credit against the ad valorem taxes imposed by certain taxing units on commercial or industrial real property based on the cost of constructing a building on the property.
Impact
If passed, HJR103 would amend Article VIII of the Texas Constitution by adding Section 1-p, specifically making provisions for property tax credits tied to construction expenditures. Notably, the bill specifies that it does not apply to ad valorem taxes levied by school districts. The amendment would grant the legislature the authority to establish guidelines for calculating the tax credit amount and determine the duration for which a property owner may benefit from such credits. This change could affect how commercial and industrial developments are financed and reported, shaping investment strategies within the state.
Summary
HJR103 proposes a constitutional amendment that would authorize the Texas legislature to create a tax credit for ad valorem taxes imposed by certain taxing units on commercial or industrial real property. This credit would be based on the construction costs incurred by property owners when erecting buildings intended for commercial or industrial use. The resolution aims to incentivize building activities, potentially fostering economic growth and development in these sectors. By establishing a financial benefit for developers, the bill seeks to encourage investment in Texas's infrastructure.
Sentiment
The sentiment surrounding HJR103 is likely to be positive among business owners and developers who view the proposed tax credit as a beneficial measure that can alleviate some of the financial burdens associated with property taxes. Supporters may emphasize the bill's potential to stimulate construction in Texas, creating jobs and improving the state's economic landscape. However, there may also be concerns from those who worry about the implications of tax credits on public revenue—especially funding for public schools—since the bill explicitly excludes school district taxes from eligibility for credits.
Contention
A notable point of contention regarding HJR103 revolves around the equity of providing tax credits only for commercial and industrial properties while excluding residential properties and taxes assessed by school districts. Critics may argue that this amendment benefits only certain sectors, potentially widening the gap between commercial and residential property owners in terms of tax responsibilities. Furthermore, how the credit is structured and implemented could foster debates about fairness and the effectiveness of tax incentives in achieving economic objectives.
Enabled by
Relating to a credit against the ad valorem taxes imposed by certain taxing units on commercial or industrial real property based on the cost of constructing a building on the property.
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of certain commercial real property for ad valorem tax purposes.
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of commercial property and rental property for ad valorem taxation.
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of commercial property and rental property for ad valorem taxation.
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of commercial property and rental property for ad valorem taxation.
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of commercial real property for ad valorem tax purposes.
Proposing a constitutional amendment to authorize the legislature to provide for limitations on the appraised value of certain real property in specified areas for ad valorem tax purposes.
Proposing a constitutional amendment authorizing the legislature to permit the owner of a parcel of real property that is located in more than one county to elect to have the property appraised for ad valorem taxation by the appraising entity for one of those counties.
Proposing a constitutional amendment to authorize the legislature to establish a limit on the maximum appraised value of real property other than a residence homestead for ad valorem tax purposes.