89R10878 CJD-F
By: Shaheen H.B. No. 5169
A BILL TO BE ENTITLED
AN ACT
relating to limitations applicable to certain agreements providing
for a rebate of municipal sales and use taxes or a grant or loan
based on those taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 321, Tax Code, is amended
by adding Section 321.006 to read as follows:
Sec. 321.006. MAXIMUM AMOUNT OF CERTAIN TAX INCENTIVES.
(a) This section applies to an agreement between a municipality or
a local government corporation or other entity created by a
municipality and a business under which:
(1) the business agrees to relocate to the
municipality from one or more other municipalities in this state;
and
(2) the municipality, corporation, or other entity
agrees to:
(A) rebate to the business an amount of tax
imposed by the municipality under this chapter or an amount of
revenue derived from that tax; or
(B) provide a grant or loan to the business in an
amount that is based on an amount of tax imposed by the municipality
under this chapter or based on an amount of revenue derived from
that tax.
(b) Notwithstanding any other law, if a business is
relocating from one municipality in this state to another
municipality pursuant to an agreement described by Subsection (a):
(1) the amount of a rebate, grant, or loan described by
Subsection (a) may not exceed the amount of any similar rebate,
grant, or loan provided by the municipality from which the business
is relocating; and
(2) the duration of an agreement described by
Subsection (a) may not exceed the duration of any similar agreement
between the business and the municipality from which the business
is relocating.
(c) Notwithstanding any other law, if a business is
relocating from more than one municipality in this state to another
municipality pursuant to an agreement described by Subsection (a):
(1) the amount of a rebate, grant, or loan described by
Subsection (a) may not exceed the weighted average amount of any
similar rebates, grants, and loans provided by the municipalities
from which the business is relocating, weighted according to the
amount of taxes under this chapter collected by the business in each
of those municipalities; and
(2) the duration of an agreement described by
Subsection (a) may not exceed the weighted average duration of any
similar agreements between the business and the municipalities from
which the business is relocating, weighted according to the amount
of taxes under this chapter collected by the business in each of
those municipalities.
SECTION 2. Section 321.006, Tax Code, as added by this Act,
does not apply to an agreement entered into before the effective
date of this Act, except that Section 321.006, Tax Code, as added by
this Act, does apply to any renewal, modification, or extension of
the agreement that occurs on or after the effective date of this
Act.
SECTION 3. This Act takes effect September 1, 2025.