Texas Senate Bill SB350

Texas 2019 - 86th Regular

Caption

Relating to the expiration of the Property Redevelopment and Tax Abatement Act.

Impact

The repeal of the Property Redevelopment and Tax Abatement Act impacts various aspects of state law including tax regulations associated with property redevelopment. It brings significant changes to how local governments might incentivize redevelopment projects with tax reliefs and could shift the landscape of real estate development within the state. Without these provisions, municipalities may have to adapt their strategies for attracting developers and fostering revitalization in urban areas, potentially altering the dynamics of local economic development efforts.

Summary

SB350 aims to repeal specific sections of the Texas Tax Code that pertain to the Property Redevelopment and Tax Abatement Act. This bill signifies a legislative move to either amend or eliminate provisions that offer tax incentives related to property redevelopment in the state. Advocates for the repeal argue that such measures may no longer serve their intended purpose or are outdated, suggesting that it's time to reassess the effectiveness of these tax abatement programs in today’s economic climate. Administrative efficiency and the promotion of newer economic development strategies are often cited as reasons for the bill's introduction.

Contention

Notable contention surrounding SB350 stems from varying perspectives on the utility and effectiveness of tax abatement programs. Proponents of the repeal argue it streamlines tax law and promotes accountability in government spending. However, opponents may voice concerns that repealing these programs could hinder local governments' ability to promote redevelopment in economically distressed areas. The debate may focus on whether the loss of such incentives could stifle growth and make it challenging to attract investments necessary for revitalizing communities. Overall, this legislation reflects a broader trend of examining and, in some cases, retracting previously established economic development strategies.