Texas 2021 - 87th Regular

Texas House Bill HJR89

Caption

Proposing a constitutional amendment authorizing the legislature to provide for a credit against the ad valorem taxes imposed by a school district on property owned by a business entity that donates money to the district to create or support career and technical education programs or courses.

Impact

Should HJR89 be ratified, it would create a pathway for businesses to reduce their tax liabilities while simultaneously supporting educational initiatives in their communities. This could lead to an increase in funding for career and technical education—a crucial area for preparing students for employment in skilled trades and specialized professions. As a result, local economies may enjoy the benefits of a more skilled workforce that is aligned with the needs of businesses.

Summary

HJR89 proposes a constitutional amendment that allows the Texas legislature to establish a tax credit against ad valorem taxes imposed by school districts. This credit would be available to business entities that donate funds to support career and technical education programs or courses within those districts. The intent of this measure is to incentivize businesses to contribute financially to the development of education programs, which can enhance the skill sets of local students and promote workforce readiness.

Contention

The discussion surrounding HJR89 may include concerns over the potential financial impact on school district revenues from ad valorem taxes. Critics might argue that while the bill aims to enhance educational funding, it could reduce overall tax income for school districts, creating funding shortfalls for essential educational services. On the other hand, proponents are expected to emphasize the long-term benefits to students and communities that arise from increased business engagement in education.

Companion Bills

TX HB1797

Enabled by Relating to ad valorem and franchise tax credits for donations to school districts to create or support career and technical education programs or courses.

Similar Bills

No similar bills found.