Texas House Bill HB2359

Texas 2019 - 86th Regular

Caption

Relating to the authority of a taxing unit to authorize tax incentives for the development of property for gambling purposes.

Impact

The impact of HB2359 is significant as it aligns state tax law with the intention to discourage the use of public funds in support of gambling operations. This may affect local governments that might seek to offer tax incentives as a means of attracting developers or businesses that engage in gambling. The explicit prohibition outlined in the bill ensures that any development benefiting from tax incentives is not involved in gambling, thereby directing resources towards more traditional or family-friendlier business opportunities within the state.

Summary

House Bill 2359 amends the Tax Code to clarify the authority of taxing units in Texas to grant tax incentives specifically for property development purposes. The bill includes provisions that explicitly state that property subject to tax abatements cannot be utilized for gambling establishments. This encompasses establishments such as game rooms, racetracks, and other venues that conduct casino games or games of chance. By introducing these clauses, the legislation aims to regulate the use of tax benefits focused on encouraging economic development while maintaining restrictions on gambling-related activities.

Contention

However, the bill does not come without points of contention. Supporters argue that the restrictions are necessary to maintain a moral standard and preserve community values against gambling proliferation. Conversely, critics might see this as detrimental to economic growth in sectors that could benefit from such incentives, arguing it limits local governments' ability to foster potentially lucrative business relationships. The balance between ethical governance and economic stimulus will likely be a continued point of debate among legislators and community stakeholders as discussions surrounding this bill progress.