86R2298 CJC-F
By: Lambert H.B. No. 1606
A BILL TO BE ENTITLED
AN ACT
relating to a local option exemption from ad valorem taxation by a
county or municipality of a portion of the appraised value of real
property of a business that provides, or pays for the provision of,
certain services for honorably discharged veterans without cost.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.38 to read as follows:
Sec. 11.38. CERTAIN BUSINESSES PROVIDING SERVICES TO
VETERANS. (a) In this section:
(1) "Qualifying business" means a business located in
this state that during the preceding tax year:
(A) provided at least $5,000 of qualifying
services to at least one qualifying veteran; or
(B) paid at least $5,000 to a provider to
reimburse the provider for costs incurred in providing qualifying
services to at least one qualifying veteran.
(2) "Qualifying services" means any of the following,
if provided to a veteran without cost:
(A) housing;
(B) substance abuse treatment;
(C) residential treatment services;
(D) case management services; or
(E) mental health counseling.
(3) "Qualifying veteran" means an individual who:
(A) has served on active duty in the armed forces
of the United States;
(B) was honorably discharged from military
service; and
(C) on or after January 1, 2019, receives
qualifying services provided or paid for by a qualifying business.
(b) Subject to Subsection (c), a person is entitled to an
exemption from taxation by a county or municipality of a portion,
expressed as a dollar amount, 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 county or
municipality, as applicable, in the manner provided by law for
official action by the governing body.
(c) The amount of the exemption authorized under this
section for a tax year is a dollar amount equal to the lesser of:
(1) $300,000; or
(2) the product of $15,000 and the number of
qualifying veterans that received qualifying services provided or
paid for by the qualifying business.
(d) The chief appraiser may require a person who applies for
an exemption under this section to present additional information
establishing eligibility for the exemption.
(e) The governing body of the county or municipality may
repeal the exemption in the manner provided by law for official
action by the governing body.
SECTION 2. 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 3. This Act takes effect January 1, 2020, but only
if the constitutional amendment proposed by the 86th Legislature,
Regular Session, 2019, authorizing the governing body of a county
or municipality 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 provides, or pays for the
provision of, certain services for honorably discharged veterans
without cost is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.