Texas Senate Bill SJR23

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

The implementation of SJR23 would lead to amendments in Article VIII of the Texas Constitution, introducing Section 1-r that highlights the legislature's ability to formulate and set eligibility requirements for the tax credits. This could result in a significant change in how property taxes are approached during statewide emergencies, potentially enhancing the resilience of local businesses in the face of disasters. The proposed measure is a response to previous situations where businesses were significantly impacted by closures due to emergency declarations.

Summary

SJR23 proposes a constitutional amendment in Texas that would permit the state legislature to authorize tax credits against the ad valorem taxes imposed on certain businesses required to close due to a disaster. This measure aims to offer financial relief to businesses that face mandatory closures by state or local officials during emergencies, such as natural disasters. The amendment specifically targets the property taxes that businesses incur, allowing for potential credits as a means of alleviating their financial burdens during difficult times.

Contention

While supporters of SJR23 argue that the amendment would provide necessary support for businesses and help stimulate economic recovery following a disaster, there may be points of contention regarding the criteria for eligibility and the adequacy of the credits offered. Concerns could arise regarding fairness in the distribution of these credits and the potential loss of revenue for state and local governments that rely on property taxes for funding essential services. Further debates may center on how to effectively implement such a system to ensure that aid reaches the businesses that need it most.