Texas House Bill HJR157

Texas 2021 - 87th Regular

Caption

Proposing a constitutional amendment authorizing the legislature to provide for a credit against the ad valorem taxes imposed on the property of certain businesses that are required to close by an order, proclamation, or other instrument issued by a state or local official as a result of a disaster.

Impact

If HJR157 is enacted, it would amend Article VIII of the Texas Constitution to grant the legislature the authority to create a framework for these tax credits. The bill would require the legislature to establish eligibility criteria and formulas for calculating the amount of the credit that businesses may receive. By facilitating tax relief for businesses facing mandatory closures, the amendment aims to promote economic resilience and stability, particularly in sectors heavily impacted by disasters.

Summary

HJR157 proposes a constitutional amendment allowing the Texas legislature to provide tax credits against ad valorem taxes for businesses that are ordered to close due to a disaster. This bill aims to ease the financial burden on businesses during times when they are mandated to halt operations, such as during natural disasters or public health emergencies. The proposed amendment seeks to offer fiscal relief and support business continuity in challenging situations, reflecting a growing recognition of the need for adaptable economic policies in response to unforeseen events.

Contention

While HJR157 addresses the immediate financial relief for affected businesses, it may also raise concerns about the long-term implications for state revenue. Critics may argue that implementing tax credits could result in significant revenue losses for local governments that depend on property taxes for essential services. Furthermore, discussions surrounding the bill could also involve debates on the criteria for determining which businesses qualify for the credits, potentially leading to disputes on fairness and the equitable application of the amendment.