| 1 | 1 | | 87R1269 CJC-D |
|---|
| 2 | 2 | | By: Paxton S.B. No. 329 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to a credit against the ad valorem taxes imposed on the |
|---|
| 8 | 8 | | property of certain businesses that are required to close by an |
|---|
| 9 | 9 | | order, proclamation, or other instrument issued by a state or local |
|---|
| 10 | 10 | | official as a result of a disaster. |
|---|
| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 12 | 12 | | SECTION 1. Chapter 31, Tax Code, is amended by adding |
|---|
| 13 | 13 | | Section 31.038 to read as follows: |
|---|
| 14 | 14 | | Sec. 31.038. TAX CREDIT FOR CERTAIN BUSINESSES CLOSED BY |
|---|
| 15 | 15 | | OFFICIAL ORDER. (a) In this section: |
|---|
| 16 | 16 | | (1) "Qualifying official order" means an order, |
|---|
| 17 | 17 | | proclamation, or other instrument issued by the governor, another |
|---|
| 18 | 18 | | official of this state, or the governing body or an official of a |
|---|
| 19 | 19 | | political subdivision of this state in response to a disaster. |
|---|
| 20 | 20 | | (2) "Qualifying small business" means a business that: |
|---|
| 21 | 21 | | (A) has fewer than 100 employees; |
|---|
| 22 | 22 | | (B) is required to close by a qualifying official |
|---|
| 23 | 23 | | order; and |
|---|
| 24 | 24 | | (C) if not for the qualifying official order, |
|---|
| 25 | 25 | | would be capable of engaging in normal business activity during the |
|---|
| 26 | 26 | | period the business is required to be closed. |
|---|
| 27 | 27 | | (b) A person who owns property that is reasonably necessary |
|---|
| 28 | 28 | | for and used by the person to operate a qualifying small business is |
|---|
| 29 | 29 | | entitled to a credit against the taxes imposed in a tax year on the |
|---|
| 30 | 30 | | property by each taxing unit that taxes the property. |
|---|
| 31 | 31 | | (c) The amount of the credit to which a property owner is |
|---|
| 32 | 32 | | entitled under this section against the taxes imposed in a tax year |
|---|
| 33 | 33 | | on the property by a taxing unit is computed by multiplying the |
|---|
| 34 | 34 | | amount of taxes imposed on the property by the taxing unit by a |
|---|
| 35 | 35 | | fraction, the denominator of which is 365 and the numerator of which |
|---|
| 36 | 36 | | is the number of days in the preceding tax year the qualifying small |
|---|
| 37 | 37 | | business the property is used to operate was closed due to a |
|---|
| 38 | 38 | | qualifying official order but would otherwise have been open. |
|---|
| 39 | 39 | | (d) A property owner must file an application with the chief |
|---|
| 40 | 40 | | appraiser of the appraisal district in which the property is |
|---|
| 41 | 41 | | located each year to receive a credit under this section. The |
|---|
| 42 | 42 | | application must include an affidavit stating the number of days in |
|---|
| 43 | 43 | | the preceding tax year that the qualifying small business the |
|---|
| 44 | 44 | | person operates was closed due to a qualifying official order but |
|---|
| 45 | 45 | | would otherwise have been open and include any relevant information |
|---|
| 46 | 46 | | or documentation required by the application form. |
|---|
| 47 | 47 | | (e) The chief appraiser shall forward a copy of the |
|---|
| 48 | 48 | | application to the assessor for each taxing unit that taxes the |
|---|
| 49 | 49 | | property. |
|---|
| 50 | 50 | | (f) The comptroller shall adopt rules for the |
|---|
| 51 | 51 | | administration of this section, including rules prescribing the |
|---|
| 52 | 52 | | form of an application for a credit. |
|---|
| 53 | 53 | | SECTION 2. This Act applies only to ad valorem taxes imposed |
|---|
| 54 | 54 | | for a tax year beginning on or after the effective date of this Act. |
|---|
| 55 | 55 | | SECTION 3. This Act takes effect January 1, 2022, but only |
|---|
| 56 | 56 | | if the constitutional amendment proposed by the 87th Legislature, |
|---|
| 57 | 57 | | Regular Session, 2021, authorizing the legislature to provide for a |
|---|
| 58 | 58 | | credit against the ad valorem taxes imposed on the property of |
|---|
| 59 | 59 | | certain businesses that are required to close by an order, |
|---|
| 60 | 60 | | proclamation, or other instrument issued by a state or local |
|---|
| 61 | 61 | | official as a result of a disaster is approved by the voters. If |
|---|
| 62 | 62 | | that amendment is not approved by the voters, this Act has no |
|---|
| 63 | 63 | | effect. |
|---|