Texas Senate Bill SB1103

Texas 2015 - 84th Regular

Caption

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.