By: Campbell, Menéndez S.B. No. 1821
A BILL TO BE ENTITLED
AN ACT
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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.37 to read as follows:
Sec. 11.37. CERTAIN BUSINESSES EMPLOYING VETERANS. (a) In
this section:
(1) "Qualifying business" means a business located in
this state that on or after January 1, 2016:
(A) hires at least one veteran; and
(B) provides full-time employment to that
veteran for a period of at least 12 consecutive months.
(2) "Qualifying property" means real property located
in this state that is owned by, and used primarily for the business
purposes of, a qualifying business.
(3) "Veteran" means an individual who:
(A) has served on active duty in the armed forces
of the United States; and
(B) was honorably discharged from military
service.
(b) Subject to Subsection (d), the governing body of a
taxing unit may agree in writing with the owner of a qualifying
business to exempt from taxation a portion of the appraised value of
the owner's qualifying property for a period not to exceed 10 years,
on the condition that, during that period, the owner of the property
meets or exceeds goals for the employment of one or more veterans.
The amount of the exemption may not exceed $15,000 of the appraised
value of the qualifying property for each veteran employed by the
qualifying business.
(c) Before entering into a tax exemption agreement under
Subsection (b), the governing body of a taxing unit shall adopt
guidelines and criteria for such agreements. The guidelines and
criteria adopted under this subsection:
(1) are effective until the second anniversary of the
date of their adoption by the governing body;
(2) must include the minimum exemption amount to which
a qualifying business is entitled; and
(3) may provide for different exemption amounts based
on reasonable factors, including the amount of compensation paid to
each veteran employed and whether the veteran receives certain
employment benefits.
(d) The governing body of a taxing unit may not enter into a
tax exemption agreement under Subsection (b) unless the governing
body finds that the terms of the agreement and the property subject
to the agreement meet the guidelines and criteria adopted by the
governing body under Subsection (c).
(e) A tax exemption agreement under this section is subject
to the rights of holders of the outstanding bonds of the taxing
unit.
SECTION 2. Section 11.43(c), Tax Code, is amended to read as
follows:
(c) An exemption provided by Section 11.13, 11.131, 11.132,
11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, 11.20, 11.21, 11.22,
11.23(h), (j), or (j-1), 11.231, 11.254, 11.271, 11.29, 11.30,
11.31, [or] 11.315, or 11.37, once allowed, need not be claimed in
subsequent years, and except as otherwise provided by Subsection
(e), the exemption applies to the property until it changes
ownership or the person's qualification for the exemption changes.
However, the chief appraiser may require a person allowed one of the
exemptions in a prior year to file a new application to confirm the
person's current qualification for the exemption by delivering a
written notice that a new application is required, accompanied by
an appropriate application form, to the person previously allowed
the exemption.
SECTION 3. This Act applies only to ad valorem taxes imposed
for a tax year that begins on or after the effective date of this
Act.
SECTION 4. This Act takes effect January 1, 2016, but only
if the constitutional amendment proposed by the 84th Legislature,
Regular Session, 2015, authorizing the governing body of a
political subdivision to adopt a local option exemption from ad
valorem taxation of a portion, expressed as a dollar amount, of the
market value of real property of a business that employs honorably
discharged veterans is approved by the voters. If that amendment is
not approved by the voters, this Act has no effect.