Texas 2021 - 87th 3rd C.S.

Texas House Bill HB32 Compare Versions

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

Old	New	Differences
1	1	By: Slaton H.B. No. 32
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to a credit against the ad valorem taxes imposed on
7	7	property owned by a person who makes a donation to the state for the
8	8	purpose of border security and reimbursement to taxing units for
9	9	the revenue loss incurred as a result of the credit.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Chapter 31, Tax Code, is amended by adding
12	12	Section 31.038 to read as follows:
13	13	Sec. 31.038. TAX CREDIT FOR DONATIONS TO SUPPORT BORDER
14	14	SECURITY EFFORTS. (a) In this section:
15	15	(1) "Border security efforts" means programs or
16	16	activities undertaken and funded by this state or an agency of this
17	17	state to secure the international border of this state with the
18	18	United Mexican States.
19	19	(2) "Business entity" means a legal entity, including
20	20	a corporation or partnership, that is formed for the purpose of
21	21	making a profit.
22	22	(3) "Principal office" means the location where the
23	23	decision makers for a business entity conduct the daily affairs of
24	24	the business.
25	25	(b) An owner of property is entitled to a credit against the
26	26	taxes imposed in a tax year on that property by a taxing unit if the
27	27	owner:
28	28	(1) is:
29	29	(A) a United States citizen residing in this
30	30	state; or
31	31	(B) a business entity whose principal office is
32	32	located in this state; and
33	33	(2) donates money to this state in support of border
34	34	security efforts.
35	35	(c) The amount of the credit to which a property owner is
36	36	entitled under this section is equal to the lesser of:
37	37	(1) the total amount of money the property owner
38	38	donated to this state in support of border security efforts during
39	39	the preceding 12-month period; or
40	40	(2) the total amount of taxes imposed on the property
41	41	by all of the taxing units that tax the property.
42	42	(d) The amount of the credit must first be applied against
43	43	the taxes imposed on the property by the school district in which
44	44	the property is located. If, after applying the credit against the
45	45	taxes imposed on the property by the school district, any amount of
46	46	the credit remains, that amount applies against the taxes imposed
47	47	on the property by each taxing unit in which the property is located
48	48	other than the school district in an amount computed by multiplying
49	49	the remaining amount of the credit by a fraction, the numerator of
50	50	which is the amount of taxes imposed on the property by the
51	51	applicable taxing unit and the denominator of which is the total
52	52	amount of taxes imposed on the property by all of the taxing units
53	53	other than the school district that tax the property.
54	54	(e) The property owner must file an application each year
55	55	with the chief appraiser of the appraisal district in which the
56	56	property is located to receive a credit under this section. The
57	57	application must include an affidavit stating the amount of the
58	58	donations described by Subsection (b)(2) made by the property owner
59	59	during the preceding 12-month period and include any relevant
60	60	information or documentation required by the application form.
61	61	(f) The chief appraiser shall forward a copy of the
62	62	application to the assessor for each taxing unit that taxes the
63	63	property. The assessors for the taxing units shall consult with one
64	64	another as necessary to compute the amount of credit, if any, to be
65	65	granted by each taxing unit.
66	66	(g) The comptroller shall adopt rules for the
67	67	implementation and administration of this section, including rules
68	68	prescribing the form of an application for the credit and
69	69	specifying the 12-month period during which donations may be used
70	70	to calculate the credit.
71	71	SECTION 2. Section 481.078, Government Code, is amended by
72	72	amending Subsection (c) and adding Subsection (d-2) to read as
73	73	follows:
74	74	(c) Except as provided by Subsections (d), [and] (d-1), and
75	75	(d-2), the fund may be used only for economic development,
76	76	infrastructure development, community development, job training
77	77	programs, and business incentives.
78	78	(d-2) The fund may be used by the comptroller to make border
79	79	security tax credit reimbursement payments in the manner prescribed
80	80	by Section 140.010, Local Government Code.
81	81	SECTION 3. Chapter 140, Local Government Code, is amended
82	82	by adding Section 140.010 to read as follows:
83	83	Sec. 140.010. BORDER SECURITY TAX CREDIT REIMBURSEMENT
84	84	PAYMENTS. (a) In this section, "taxing unit" and "tax year" have
85	85	the meanings assigned by Section 1.04, Tax Code.
86	86	(b) A taxing unit is entitled to a border security tax
87	87	credit reimbursement payment from the state for a tax year for which
88	88	the chief appraiser of the appraisal district in which the taxing
89	89	unit participates approves an application for a credit under
90	90	Section 31.038, Tax Code.
91	91	(c) The amount of the border security tax credit
92	92	reimbursement payment is equal to the revenue loss incurred by the
93	93	taxing unit as a result of the credit under Section 31.038, Tax
94	94	Code, in the tax year for which the border security tax credit
95	95	reimbursement payment is sought.
96	96	(d) Not later than April 1 of the year following the tax year
97	97	for which the border security tax credit reimbursement payment is
98	98	sought, the taxing unit may submit an application to the
99	99	comptroller to receive a border security tax credit reimbursement
100	100	payment for that tax year. The application must be made on a form
101	101	prescribed by the comptroller.
102	102	(e) A taxing unit that does not submit an application to the
103	103	comptroller by the date prescribed by Subsection (d) is not
104	104	entitled to a border security tax credit reimbursement payment for
105	105	the tax year for which the deadline applies.
106	106	(f) The comptroller shall review each application by a
107	107	taxing unit to determine whether the taxing unit is entitled to a
108	108	border security tax credit reimbursement payment. If the
109	109	comptroller determines that the taxing unit is entitled to the
110	110	payment, the comptroller shall remit the payment to the taxing unit
111	111	not later than the 30th day after the date the application for the
112	112	payment is made.
113	113	(g) The comptroller shall make border security tax credit
114	114	reimbursement payments using money in the Texas Enterprise Fund.
115	115	In the event that the Texas Enterprise Fund does not maintain a
116	116	positive balance on the date the comptroller is required to make a
117	117	payment, the comptroller shall make the payment using undedicated
118	118	money in the general revenue fund.
119	119	(h) The comptroller may adopt rules to implement and
120	120	administer this section.
121	121	SECTION 4. This Act applies only to ad valorem taxes imposed
122	122	for a tax year beginning on or after the effective date of this Act.
123	123	SECTION 5. This Act takes effect January 1, 2023, but only
124	124	if the constitutional amendment proposed by the 87th Legislature,
125	125	3rd Called Session, 2021, to authorize the legislature to provide
126	126	for a credit against the ad valorem taxes imposed on property owned
127	127	by a person who makes a donation to the state for the purpose of
128	128	border security and to provide for the reimbursement of political
129	129	subdivisions for the revenue loss incurred as a result of the credit
130	130	is approved by the voters. If that amendment is not approved by the
131	131	voters, this Act has no effect.