Texas Senate Bill SB1647

Texas 2013 - 83rd Regular

Caption

Relating to the Texas Economic Development Act.

Impact

The legislation is designed to facilitate the decision-making process for economic development at the local level while aligning with statewide goals. The amendments include provisions for the approval process by school districts, ensuring that any benefits provided through tax limitations directly enhance local communities, improve public education, and generate high-paying jobs. The bill stipulates specific categories for school districts based on their taxable property value, which affects the minimum amounts of investment required to qualify for tax relief.

Summary

SB1647 proposes amendments to the Texas Economic Development Act, primarily focusing on enhancing the state's ability to attract large employers and create jobs. The bill acknowledges the competitive landscape of economic development, citing the need for Texas to offer more favorable conditions for capital-intensive industries due to its relatively high ad valorem tax rates. By temporarily limiting these taxes for new capital investments, the state seeks to improve its appeal to businesses looking to establish operations in Texas.

Contention

While proponents of SB1647 argue that its focus on job creation and economic stability is essential for local development, critics highlight potential concerns about the implications of such tax limitations. Opponents may view the legislation as favoring large corporations at the expense of local governance, questioning whether it adequately protects the interests of smaller businesses and ensures equitable economic growth across diverse regions in Texas. Furthermore, the potential for abuse in the qualification criteria and accountability measures for job creation and investment promises remains a point of concern for advocates of local economic policies.