| 1 | 1 | | 86R2298 CJC-F |
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| 2 | 2 | | By: Lambert H.B. No. 1606 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a local option exemption from ad valorem taxation by a |
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| 8 | 8 | | county or municipality of a portion of the appraised value of real |
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| 9 | 9 | | property of a business that provides, or pays for the provision of, |
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| 10 | 10 | | certain services for honorably discharged veterans without cost. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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| 13 | 13 | | adding Section 11.38 to read as follows: |
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| 14 | 14 | | Sec. 11.38. CERTAIN BUSINESSES PROVIDING SERVICES TO |
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| 15 | 15 | | VETERANS. (a) In this section: |
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| 16 | 16 | | (1) "Qualifying business" means a business located in |
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| 17 | 17 | | this state that during the preceding tax year: |
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| 18 | 18 | | (A) provided at least $5,000 of qualifying |
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| 19 | 19 | | services to at least one qualifying veteran; or |
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| 20 | 20 | | (B) paid at least $5,000 to a provider to |
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| 21 | 21 | | reimburse the provider for costs incurred in providing qualifying |
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| 22 | 22 | | services to at least one qualifying veteran. |
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| 23 | 23 | | (2) "Qualifying services" means any of the following, |
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| 24 | 24 | | if provided to a veteran without cost: |
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| 25 | 25 | | (A) housing; |
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| 26 | 26 | | (B) substance abuse treatment; |
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| 27 | 27 | | (C) residential treatment services; |
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| 28 | 28 | | (D) case management services; or |
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| 29 | 29 | | (E) mental health counseling. |
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| 30 | 30 | | (3) "Qualifying veteran" means an individual who: |
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| 31 | 31 | | (A) has served on active duty in the armed forces |
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| 32 | 32 | | of the United States; |
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| 33 | 33 | | (B) was honorably discharged from military |
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| 34 | 34 | | service; and |
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| 35 | 35 | | (C) on or after January 1, 2019, receives |
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| 36 | 36 | | qualifying services provided or paid for by a qualifying business. |
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| 37 | 37 | | (b) Subject to Subsection (c), a person is entitled to an |
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| 38 | 38 | | exemption from taxation by a county or municipality of a portion, |
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| 39 | 39 | | expressed as a dollar amount, of the appraised value of real |
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| 40 | 40 | | property the person owns that is reasonably necessary for and used |
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| 41 | 41 | | by the person in the operation of a qualifying business if the |
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| 42 | 42 | | exemption is adopted by the governing body of the county or |
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| 43 | 43 | | municipality, as applicable, in the manner provided by law for |
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| 44 | 44 | | official action by the governing body. |
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| 45 | 45 | | (c) The amount of the exemption authorized under this |
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| 46 | 46 | | section for a tax year is a dollar amount equal to the lesser of: |
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| 47 | 47 | | (1) $300,000; or |
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| 48 | 48 | | (2) the product of $15,000 and the number of |
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| 49 | 49 | | qualifying veterans that received qualifying services provided or |
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| 50 | 50 | | paid for by the qualifying business. |
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| 51 | 51 | | (d) The chief appraiser may require a person who applies for |
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| 52 | 52 | | an exemption under this section to present additional information |
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| 53 | 53 | | establishing eligibility for the exemption. |
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| 54 | 54 | | (e) The governing body of the county or municipality may |
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| 55 | 55 | | repeal the exemption in the manner provided by law for official |
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| 56 | 56 | | action by the governing body. |
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| 57 | 57 | | SECTION 2. This Act applies only to ad valorem taxes imposed |
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| 58 | 58 | | for a tax year that begins on or after the effective date of this |
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| 59 | 59 | | Act. |
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| 60 | 60 | | SECTION 3. This Act takes effect January 1, 2020, but only |
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| 61 | 61 | | if the constitutional amendment proposed by the 86th Legislature, |
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| 62 | 62 | | Regular Session, 2019, authorizing the governing body of a county |
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| 63 | 63 | | or municipality to adopt a local option exemption from ad valorem |
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| 64 | 64 | | taxation of a portion, expressed as a dollar amount, of the market |
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| 65 | 65 | | value of real property of a business that provides, or pays for the |
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| 66 | 66 | | provision of, certain services for honorably discharged veterans |
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| 67 | 67 | | without cost is approved by the voters. If that amendment is not |
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| 68 | 68 | | approved by the voters, this Act has no effect. |
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