Proposing a constitutional amendment authorizing the governing bodies of certain political subdivisions to exempt from ad valorem taxation the real and tangible personal property of businesses during an initial period of operation in this state.
Impact
The passage of HJR18 could significantly impact local economic development strategies by providing a financial incentive for businesses to locate in smaller counties. Proponents argue that this could lead to job creation and stimulate economic growth in regions that may struggle to attract businesses compared to more urbanized areas. The bill allows the legislature to establish additional eligibility criteria for these tax exemptions, giving local governments flexibility in how they manage economic development efforts.
Summary
HJR18 proposes a constitutional amendment in Texas that authorizes the governing bodies of specific political subdivisions to exempt from ad valorem taxation the real and tangible personal property of businesses during their initial period of operation in the state. This exemption would apply to businesses starting on or after January 1, 2018, and would be available for a duration of ten years, provided the property is situated in a county with a population of 250,000 or less. This initiative is designed to encourage new businesses to establish operations in less populated areas by easing their initial financial burdens through tax relief.
Contention
Despite the potential benefits, HJR18 may face opposition regarding the implications of tax exemptions for local revenue. Critics might argue that granting such exemptions could diminish the tax base in smaller counties, making it difficult for local governments to fund essential services. Furthermore, there might be concerns about fairness, as larger populations or more urban areas may not receive similar incentives, potentially exacerbating regional inequalities in business development and economic opportunity.
Enabled by
Relating to exemptions from ad valorem taxes, the sales and use tax, and the franchise tax for certain businesses during an initial period of operation in this state.
Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation income-producing tangible personal property having a value of less than a certain amount.
Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation income-producing tangible personal property having a value of less than a certain amount.
Proposing a constitutional amendment authorizing the governing body of a political subdivision other than a school district to adopt an exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the market value of an individual's residence homestead.
Proposing a constitutional amendment authorizing the governing body of a political subdivision to adopt an exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the market value of an individual's residence homestead.
Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail.
Proposing a constitutional amendment to provide for an exemption from ad valorem taxation by certain political subdivisions of a portion of the market value of the residence homestead of the parent or guardian of a person who is disabled and who resides with the parent or guardian.