| 1 | 1 | | 89R10878 CJD-F |
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| 2 | 2 | | By: Shaheen H.B. No. 5169 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to limitations applicable to certain agreements providing |
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| 10 | 10 | | for a rebate of municipal sales and use taxes or a grant or loan |
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| 11 | 11 | | based on those taxes. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Subchapter A, Chapter 321, Tax Code, is amended |
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| 14 | 14 | | by adding Section 321.006 to read as follows: |
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| 15 | 15 | | Sec. 321.006. MAXIMUM AMOUNT OF CERTAIN TAX INCENTIVES. |
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| 16 | 16 | | (a) This section applies to an agreement between a municipality or |
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| 17 | 17 | | a local government corporation or other entity created by a |
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| 18 | 18 | | municipality and a business under which: |
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| 19 | 19 | | (1) the business agrees to relocate to the |
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| 20 | 20 | | municipality from one or more other municipalities in this state; |
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| 21 | 21 | | and |
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| 22 | 22 | | (2) the municipality, corporation, or other entity |
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| 23 | 23 | | agrees to: |
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| 24 | 24 | | (A) rebate to the business an amount of tax |
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| 25 | 25 | | imposed by the municipality under this chapter or an amount of |
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| 26 | 26 | | revenue derived from that tax; or |
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| 27 | 27 | | (B) provide a grant or loan to the business in an |
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| 28 | 28 | | amount that is based on an amount of tax imposed by the municipality |
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| 29 | 29 | | under this chapter or based on an amount of revenue derived from |
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| 30 | 30 | | that tax. |
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| 31 | 31 | | (b) Notwithstanding any other law, if a business is |
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| 32 | 32 | | relocating from one municipality in this state to another |
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| 33 | 33 | | municipality pursuant to an agreement described by Subsection (a): |
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| 34 | 34 | | (1) the amount of a rebate, grant, or loan described by |
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| 35 | 35 | | Subsection (a) may not exceed the amount of any similar rebate, |
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| 36 | 36 | | grant, or loan provided by the municipality from which the business |
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| 37 | 37 | | is relocating; and |
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| 38 | 38 | | (2) the duration of an agreement described by |
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| 39 | 39 | | Subsection (a) may not exceed the duration of any similar agreement |
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| 40 | 40 | | between the business and the municipality from which the business |
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| 41 | 41 | | is relocating. |
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| 42 | 42 | | (c) Notwithstanding any other law, if a business is |
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| 43 | 43 | | relocating from more than one municipality in this state to another |
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| 44 | 44 | | municipality pursuant to an agreement described by Subsection (a): |
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| 45 | 45 | | (1) the amount of a rebate, grant, or loan described by |
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| 46 | 46 | | Subsection (a) may not exceed the weighted average amount of any |
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| 47 | 47 | | similar rebates, grants, and loans provided by the municipalities |
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| 48 | 48 | | from which the business is relocating, weighted according to the |
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| 49 | 49 | | amount of taxes under this chapter collected by the business in each |
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| 50 | 50 | | of those municipalities; and |
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| 51 | 51 | | (2) the duration of an agreement described by |
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| 52 | 52 | | Subsection (a) may not exceed the weighted average duration of any |
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| 53 | 53 | | similar agreements between the business and the municipalities from |
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| 54 | 54 | | which the business is relocating, weighted according to the amount |
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| 55 | 55 | | of taxes under this chapter collected by the business in each of |
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| 56 | 56 | | those municipalities. |
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| 57 | 57 | | SECTION 2. Section 321.006, Tax Code, as added by this Act, |
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| 58 | 58 | | does not apply to an agreement entered into before the effective |
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| 59 | 59 | | date of this Act, except that Section 321.006, Tax Code, as added by |
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| 60 | 60 | | this Act, does apply to any renewal, modification, or extension of |
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| 61 | 61 | | the agreement that occurs on or after the effective date of this |
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| 62 | 62 | | Act. |
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| 63 | 63 | | SECTION 3. This Act takes effect September 1, 2025. |
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