LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 10, 2015 TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1821 by Campbell (Relating to a local option exemption from ad valorem taxation of a portion of the appraised value of real property of a business that employs honorably discharged veterans.), As Introduced The fiscal implication of a local option exemption from ad valorem taxation of a portion of the appraised value of real property of a business that employs honorably discharged veterans is discussed in the fiscal note for the enabling resolution, SJR 60. The bill would amend Chapter 11 of the Tax Code, regarding taxable property and exemptions, to entitle a person to a property tax exemption of a portion of the appraised value of real property the person owns that is reasonably necessary for and used by the person in the operation of a qualifying business if the exemption is adopted by the governing body of the taxing unit. The exempt amount would be a maximum of $15,000 for each veteran employed. A qualifying business would mean a business located in this state that on or after January 1, 2016, hires at least one veteran, and provides full time employment to that veteran for a period of at least 12 consecutive months. The governing body of the taxing unit would be permitted to repeal the exemption. The corresponding joint resolution is self-implementing. Consequently, the fiscal methodology is discussed in the fiscal note for the joint resolution. Note: the language in the corresponding joint resolution does not appear to authorize the legislature to limit the exemption amount to $15,000 per veteran employed. The bill would take effect on January 1, 2016, contingent on voter approval of a constitutional amendment. Local Government Impact The fiscal implication of a local option exemption from ad valorem taxation of a portion of the appraised value of real property of a business that employs honorably discharged veterans is discussed in the fiscal note for the enabling resolution, SJR 60. Source Agencies:304 Comptroller of Public Accounts LBB Staff: UP, KK, SD, SJS
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
April 10, 2015
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1821 by Campbell (Relating to a local option exemption from ad valorem taxation of a portion of the appraised value of real property of a business that employs honorably discharged veterans.), As Introduced
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1821 by Campbell (Relating to a local option exemption from ad valorem taxation of a portion of the appraised value of real property of a business that employs honorably discharged veterans.), As Introduced
Honorable Jane Nelson, Chair, Senate Committee on Finance
Honorable Jane Nelson, Chair, Senate Committee on Finance
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB1821 by Campbell (Relating to a local option exemption from ad valorem taxation of a portion of the appraised value of real property of a business that employs honorably discharged veterans.), As Introduced
SB1821 by Campbell (Relating to a local option exemption from ad valorem taxation of a portion of the appraised value of real property of a business that employs honorably discharged veterans.), As Introduced
The fiscal implication of a local option exemption from ad valorem taxation of a portion of the appraised value of real property of a business that employs honorably discharged veterans is discussed in the fiscal note for the enabling resolution, SJR 60.
The fiscal implication of a local option exemption from ad valorem taxation of a portion of the appraised value of real property of a business that employs honorably discharged veterans is discussed in the fiscal note for the enabling resolution, SJR 60.
The bill would amend Chapter 11 of the Tax Code, regarding taxable property and exemptions, to entitle a person to a property tax exemption of a portion of the appraised value of real property the person owns that is reasonably necessary for and used by the person in the operation of a qualifying business if the exemption is adopted by the governing body of the taxing unit. The exempt amount would be a maximum of $15,000 for each veteran employed. A qualifying business would mean a business located in this state that on or after January 1, 2016, hires at least one veteran, and provides full time employment to that veteran for a period of at least 12 consecutive months. The governing body of the taxing unit would be permitted to repeal the exemption. The corresponding joint resolution is self-implementing. Consequently, the fiscal methodology is discussed in the fiscal note for the joint resolution. Note: the language in the corresponding joint resolution does not appear to authorize the legislature to limit the exemption amount to $15,000 per veteran employed. The bill would take effect on January 1, 2016, contingent on voter approval of a constitutional amendment.
Local Government Impact
The fiscal implication of a local option exemption from ad valorem taxation of a portion of the appraised value of real property of a business that employs honorably discharged veterans is discussed in the fiscal note for the enabling resolution, SJR 60.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD, SJS
UP, KK, SD, SJS