Texas 2021 - 87th 2nd C.S.

Texas House Bill HB120 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87S20199 CJC-D
2	2	By: Slaton H.B. No. 120
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
8	8	property owned by a person who makes a donation to the state for the
9	9	purpose of border security and reimbursement to taxing units for
10	10	the revenue loss incurred as a result of the credit.
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 DONATIONS TO SUPPORT BORDER
15	15	SECURITY EFFORTS. (a) In this section:
16	16	(1) "Border security efforts" means programs or
17	17	activities undertaken and funded by this state or an agency of this
18	18	state to secure the international border of this state with the
19	19	United Mexican States.
20	20	(2) "Business entity" means a legal entity, including
21	21	a corporation or partnership, that is formed for the purpose of
22	22	making a profit.
23	23	(3) "Principal office" means the location where the
24	24	decision makers for a business entity conduct the daily affairs of
25	25	the business.
26	26	(b) An owner of property is entitled to a credit against the
27	27	taxes imposed in a tax year on that property by a taxing unit if the
28	28	owner:
29	29	(1) is:
30	30	(A) a United States citizen residing in this
31	31	state; or
32	32	(B) a business entity whose principal office is
33	33	located in this state; and
34	34	(2) donates money to this state in support of border
35	35	security efforts.
36	36	(c) The amount of the credit to which a property owner is
37	37	entitled under this section is equal to the lesser of:
38	38	(1) the total amount of money the property owner
39	39	donated to this state in support of border security efforts during
40	40	the preceding 12-month period; or
41	41	(2) the total amount of taxes imposed on the property
42	42	by all of the taxing units that tax the property.
43	43	(d) The amount of the credit must first be applied against
44	44	the taxes imposed on the property by the school district in which
45	45	the property is located. If, after applying the credit against the
46	46	taxes imposed on the property by the school district, any amount of
47	47	the credit remains, that amount applies against the taxes imposed
48	48	on the property by each taxing unit in which the property is located
49	49	other than the school district in an amount computed by multiplying
50	50	the remaining amount of the credit by a fraction, the numerator of
51	51	which is the amount of taxes imposed on the property by the
52	52	applicable taxing unit and the denominator of which is the total
53	53	amount of taxes imposed on the property by all of the taxing units
54	54	other than the school district that tax the property.
55	55	(e) The property owner must file an application each year
56	56	with the chief appraiser of the appraisal district in which the
57	57	property is located to receive a credit under this section. The
58	58	application must include an affidavit stating the amount of the
59	59	donations described by Subsection (b)(2) made by the property owner
60	60	during the preceding 12-month period and include any relevant
61	61	information or documentation required by the application form.
62	62	(f) The chief appraiser shall forward a copy of the
63	63	application to the assessor for each taxing unit that taxes the
64	64	property. The assessors for the taxing units shall consult with one
65	65	another as necessary to compute the amount of credit, if any, to be
66	66	granted by each taxing unit.
67	67	(g) The comptroller shall adopt rules for the
68	68	implementation and administration of this section, including rules
69	69	prescribing the form of an application for the credit and
70	70	specifying the 12-month period during which donations may be used
71	71	to calculate the credit.
72	72	SECTION 2. Section 481.078, Government Code, is amended by
73	73	amending Subsection (c) and adding Subsection (d-2) to read as
74	74	follows:
75	75	(c) Except as provided by Subsections (d), [and] (d-1), and
76	76	(d-2), the fund may be used only for economic development,
77	77	infrastructure development, community development, job training
78	78	programs, and business incentives.
79	79	(d-2) The fund may be used by the comptroller to make border
80	80	security tax credit reimbursement payments in the manner prescribed
81	81	by Section 140.010, Local Government Code.
82	82	SECTION 3. Chapter 140, Local Government Code, is amended
83	83	by adding Section 140.010 to read as follows:
84	84	Sec. 140.010. BORDER SECURITY TAX CREDIT REIMBURSEMENT
85	85	PAYMENTS. (a) In this section, "taxing unit" and "tax year" have
86	86	the meanings assigned by Section 1.04, Tax Code.
87	87	(b) A taxing unit is entitled to a border security tax
88	88	credit reimbursement payment from the state for a tax year for which
89	89	the chief appraiser of the appraisal district in which the taxing
90	90	unit participates approves an application for a credit under
91	91	Section 31.038, Tax Code.
92	92	(c) The amount of the border security tax credit
93	93	reimbursement payment is equal to the revenue loss incurred by the
94	94	taxing unit as a result of the credit under Section 31.038, Tax
95	95	Code, in the tax year for which the border security tax credit
96	96	reimbursement payment is sought.
97	97	(d) Not later than April 1 of the year following the tax year
98	98	for which the border security tax credit reimbursement payment is
99	99	sought, the taxing unit may submit an application to the
100	100	comptroller to receive a border security tax credit reimbursement
101	101	payment for that tax year. The application must be made on a form
102	102	prescribed by the comptroller.
103	103	(e) A taxing unit that does not submit an application to the
104	104	comptroller by the date prescribed by Subsection (d) is not
105	105	entitled to a border security tax credit reimbursement payment for
106	106	the tax year for which the deadline applies.
107	107	(f) The comptroller shall review each application by a
108	108	taxing unit to determine whether the taxing unit is entitled to a
109	109	border security tax credit reimbursement payment. If the
110	110	comptroller determines that the taxing unit is entitled to the
111	111	payment, the comptroller shall remit the payment to the taxing unit
112	112	not later than the 30th day after the date the application for the
113	113	payment is made.
114	114	(g) The comptroller shall make border security tax credit
115	115	reimbursement payments using money in the Texas Enterprise Fund.
116	116	In the event that the Texas Enterprise Fund does not maintain a
117	117	positive balance on the date the comptroller is required to make a
118	118	payment, the comptroller shall make the payment using undedicated
119	119	money in the general revenue fund.
120	120	(h) The comptroller may adopt rules to implement and
121	121	administer this section.
122	122	SECTION 4. This Act applies only to ad valorem taxes imposed
123	123	for a tax year beginning on or after the effective date of this Act.
124	124	SECTION 5. This Act takes effect January 1, 2023, but only
125	125	if the constitutional amendment proposed by the 87th Legislature,
126	126	2nd Called Session, 2021, to authorize the legislature to provide
127	127	for a credit against the ad valorem taxes imposed on property owned
128	128	by a person who makes a donation to the state for the purpose of
129	129	border security and to provide for the reimbursement of political
130	130	subdivisions for the revenue loss incurred as a result of the credit
131	131	is approved by the voters. If that amendment is not approved by the
132	132	voters, this Act has no effect.