Relating to the eligibility of property used for large data center projects for ad valorem tax benefits under the Texas Economic Development Act.
Impact
The enactment of SB1103 would significantly impact local taxing authorities and the economic landscape of Texas. By allowing large data centers to qualify for tax benefits, the bill could enhance state competitiveness in attracting technology companies and may lead to increased job creation and investment within the sector. This could further align with broader economic strategies aimed at fostering innovation and infrastructure improvements across the state.
Summary
SB1103 seeks to amend the Texas Tax Code to extend eligibility for ad valorem tax benefits to property utilized for large data center projects. Specifically, it expands the definition of eligible property under Section 313.024 of the Tax Code to include projects primarily engaged in providing electronic data processing and information storage. This inclusion aims to encourage the growth of the technology sector and attract data center operations to Texas, potentially boosting the state's economic development efforts.
Contention
Despite its positive implications, SB1103 has faced scrutiny. Concerns have been raised about the potential loss of tax revenue for local school districts and municipalities that depend on ad valorem taxes for essential services. Critics suggest that while the bill may benefit large tech companies, it could lead to an inequitable distribution of tax benefits, placing a heavier burden on smaller businesses and local taxpayers. Discussions surrounding SB1103 highlight the ongoing tensions between state economic growth objectives and the financial needs of local communities.
Very Similar
Relating to the eligibility of property used for a large data center project for ad valorem tax benefits under the Texas Economic Development Act.
Relating to the establishment of the Texas Mircale Act (TMA), allowing for certain fees, authorizing certain ad valorem tax incentives for economic development, specifically certain tax relief from school district taxes for certain corporations and limited liability companies that make large investments that create jobs in this state, to authorizing the imposition of certain fees, and the repeal of Chapter 313 of Texas Tax Code and the Economic Development Act of the 77th Legislature.
Relating to the duty of a school district to enter into an ad valorem tax abatement agreement under the Property Redevelopment and Tax Abatement Act for certain property.
Relating to the provision by the Texas Water Development Board of financial assistance for the development of residential drainage projects in economically distressed areas.