TX
Texas Senate Bill SB1821

Texas 2015 - 84th Regular

Texas Senate Bill SB1821 Compare Versions

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1-By: Campbell S.B. No. 1821
2- (In the Senate - Filed March 13, 2015; March 25, 2015, read
3- first time and referred to Committee on Finance; April 13, 2015,
4- reported favorably by the following vote: Yeas 11, Nays 1;
5- April 13, 2015, sent to printer.)
6-Click here to see the committee vote
1+By: Campbell, Menéndez S.B. No. 1821
72
83
94 A BILL TO BE ENTITLED
105 AN ACT
116 relating to a local option exemption from ad valorem taxation of a
127 portion of the appraised value of real property of a business that
138 employs honorably discharged veterans.
149 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1510 SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
1611 adding Section 11.37 to read as follows:
1712 Sec. 11.37. CERTAIN BUSINESSES EMPLOYING VETERANS. (a) In
1813 this section:
1914 (1) "Qualifying business" means a business located in
2015 this state that on or after January 1, 2016:
2116 (A) hires at least one veteran; and
2217 (B) provides full-time employment to that
2318 veteran for a period of at least 12 consecutive months.
24- (2) "Veteran" means an individual who:
19+ (2) "Qualifying property" means real property located
20+ in this state that is owned by, and used primarily for the business
21+ purposes of, a qualifying business.
22+ (3) "Veteran" means an individual who:
2523 (A) has served on active duty in the armed forces
2624 of the United States; and
2725 (B) was honorably discharged from military
2826 service.
29- (b) Subject to Subsection (c), a person is entitled to an
30- exemption from taxation of a portion, expressed as a dollar amount,
31- of the appraised value of real property the person owns that is
32- reasonably necessary for and used by the person in the operation of
33- a qualifying business if the exemption is adopted by the governing
34- body of the taxing unit.
35- (c) The amount of the exemption adopted as provided by
36- Subsection (b) may not exceed $15,000 of the appraised value of the
37- property for each veteran employed by the qualifying business.
38- (d) The chief appraiser may require a person seeking an
39- exemption under this section to present additional information
40- establishing eligibility for the exemption.
41- (e) The governing body of the taxing unit may repeal the
42- exemption in the manner provided by law for official action by the
43- governing body.
44- SECTION 2. This Act applies only to ad valorem taxes imposed
27+ (b) Subject to Subsection (d), the governing body of a
28+ taxing unit may agree in writing with the owner of a qualifying
29+ business to exempt from taxation a portion of the appraised value of
30+ the owner's qualifying property for a period not to exceed 10 years,
31+ on the condition that, during that period, the owner of the property
32+ meets or exceeds goals for the employment of one or more veterans.
33+ The amount of the exemption may not exceed $15,000 of the appraised
34+ value of the qualifying property for each veteran employed by the
35+ qualifying business.
36+ (c) Before entering into a tax exemption agreement under
37+ Subsection (b), the governing body of a taxing unit shall adopt
38+ guidelines and criteria for such agreements. The guidelines and
39+ criteria adopted under this subsection:
40+ (1) are effective until the second anniversary of the
41+ date of their adoption by the governing body;
42+ (2) must include the minimum exemption amount to which
43+ a qualifying business is entitled; and
44+ (3) may provide for different exemption amounts based
45+ on reasonable factors, including the amount of compensation paid to
46+ each veteran employed and whether the veteran receives certain
47+ employment benefits.
48+ (d) The governing body of a taxing unit may not enter into a
49+ tax exemption agreement under Subsection (b) unless the governing
50+ body finds that the terms of the agreement and the property subject
51+ to the agreement meet the guidelines and criteria adopted by the
52+ governing body under Subsection (c).
53+ (e) A tax exemption agreement under this section is subject
54+ to the rights of holders of the outstanding bonds of the taxing
55+ unit.
56+ SECTION 2. Section 11.43(c), Tax Code, is amended to read as
57+ follows:
58+ (c) An exemption provided by Section 11.13, 11.131, 11.132,
59+ 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, 11.20, 11.21, 11.22,
60+ 11.23(h), (j), or (j-1), 11.231, 11.254, 11.271, 11.29, 11.30,
61+ 11.31, [or] 11.315, or 11.37, once allowed, need not be claimed in
62+ subsequent years, and except as otherwise provided by Subsection
63+ (e), the exemption applies to the property until it changes
64+ ownership or the person's qualification for the exemption changes.
65+ However, the chief appraiser may require a person allowed one of the
66+ exemptions in a prior year to file a new application to confirm the
67+ person's current qualification for the exemption by delivering a
68+ written notice that a new application is required, accompanied by
69+ an appropriate application form, to the person previously allowed
70+ the exemption.
71+ SECTION 3. This Act applies only to ad valorem taxes imposed
4572 for a tax year that begins on or after the effective date of this
4673 Act.
47- SECTION 3. This Act takes effect January 1, 2016, but only
74+ SECTION 4. This Act takes effect January 1, 2016, but only
4875 if the constitutional amendment proposed by the 84th Legislature,
4976 Regular Session, 2015, authorizing the governing body of a
5077 political subdivision to adopt a local option exemption from ad
5178 valorem taxation of a portion, expressed as a dollar amount, of the
5279 market value of real property of a business that employs honorably
5380 discharged veterans is approved by the voters. If that amendment is
5481 not approved by the voters, this Act has no effect.
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