Bill Text: TX HB32 | 2021 | 87th Legislature 3rd Special Session | Introduced

Texas House Bill 32 (Prior Session Legislation)

Introduced

Bill Title: Relating to a credit against the ad valorem taxes imposed on property owned by a person who makes a donation to the state for the purpose of border security and reimbursement to taxing units for the revenue loss incurred as a result of the credit.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-09-09 - Filed [HB32 Detail]

Download: Texas-2021-HB32-Introduced.html



	By: Slaton	H.B. No. 32



	A BILL TO BE ENTITLED
	AN ACT
	relating to a credit against the ad valorem taxes imposed on
	property owned by a person who makes a donation to the state for the
	purpose of border security and reimbursement to taxing units for
	the revenue loss incurred as a result of the credit.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Chapter 31, Tax Code, is amended by adding
	Section 31.038 to read as follows:
	Sec. 31.038. TAX CREDIT FOR DONATIONS TO SUPPORT BORDER
	SECURITY EFFORTS. (a) In this section:
	(1) "Border security efforts" means programs or
	activities undertaken and funded by this state or an agency of this
	state to secure the international border of this state with the
	United Mexican States.
	(2) "Business entity" means a legal entity, including
	a corporation or partnership, that is formed for the purpose of
	making a profit.
	(3) "Principal office" means the location where the
	decision makers for a business entity conduct the daily affairs of
	the business.
	(b) An owner of property is entitled to a credit against the
	taxes imposed in a tax year on that property by a taxing unit if the
	owner:
	(1) is:
	(A) a United States citizen residing in this
	state; or
	(B) a business entity whose principal office is
	located in this state; and
	(2) donates money to this state in support of border
	security efforts.
	(c) The amount of the credit to which a property owner is
	entitled under this section is equal to the lesser of:
	(1) the total amount of money the property owner
	donated to this state in support of border security efforts during
	the preceding 12-month period; or
	(2) the total amount of taxes imposed on the property
	by all of the taxing units that tax the property.
	(d) The amount of the credit must first be applied against
	the taxes imposed on the property by the school district in which
	the property is located. If, after applying the credit against the
	taxes imposed on the property by the school district, any amount of
	the credit remains, that amount applies against the taxes imposed
	on the property by each taxing unit in which the property is located
	other than the school district in an amount computed by multiplying
	the remaining amount of the credit by a fraction, the numerator of
	which is the amount of taxes imposed on the property by the
	applicable taxing unit and the denominator of which is the total
	amount of taxes imposed on the property by all of the taxing units
	other than the school district that tax the property.
	(e) The property owner must file an application each year
	with the chief appraiser of the appraisal district in which the
	property is located to receive a credit under this section. The
	application must include an affidavit stating the amount of the
	donations described by Subsection (b)(2) made by the property owner
	during the preceding 12-month period and include any relevant
	information or documentation required by the application form.
	(f) The chief appraiser shall forward a copy of the
	application to the assessor for each taxing unit that taxes the
	property. The assessors for the taxing units shall consult with one
	another as necessary to compute the amount of credit, if any, to be
	granted by each taxing unit.
	(g) The comptroller shall adopt rules for the
	implementation and administration of this section, including rules
	prescribing the form of an application for the credit and
	specifying the 12-month period during which donations may be used
	to calculate the credit.
	SECTION 2. Section 481.078, Government Code, is amended by
	amending Subsection (c) and adding Subsection (d-2) to read as
	follows:
	(c) Except as provided by Subsections (d), [~~and~~] (d-1), and
	(d-2), the fund may be used only for economic development,
	infrastructure development, community development, job training
	programs, and business incentives.
	(d-2) The fund may be used by the comptroller to make border
	security tax credit reimbursement payments in the manner prescribed
	by Section 140.010, Local Government Code.
	SECTION 3. Chapter 140, Local Government Code, is amended
	by adding Section 140.010 to read as follows:
	Sec. 140.010. BORDER SECURITY TAX CREDIT REIMBURSEMENT
	PAYMENTS. (a) In this section, "taxing unit" and "tax year" have
	the meanings assigned by Section 1.04, Tax Code.
	(b) A taxing unit is entitled to a border security tax
	credit reimbursement payment from the state for a tax year for which
	the chief appraiser of the appraisal district in which the taxing
	unit participates approves an application for a credit under
	Section 31.038, Tax Code.
	(c) The amount of the border security tax credit
	reimbursement payment is equal to the revenue loss incurred by the
	taxing unit as a result of the credit under Section 31.038, Tax
	Code, in the tax year for which the border security tax credit
	reimbursement payment is sought.
	(d) Not later than April 1 of the year following the tax year
	for which the border security tax credit reimbursement payment is
	sought, the taxing unit may submit an application to the
	comptroller to receive a border security tax credit reimbursement
	payment for that tax year. The application must be made on a form
	prescribed by the comptroller.
	(e) A taxing unit that does not submit an application to the
	comptroller by the date prescribed by Subsection (d) is not
	entitled to a border security tax credit reimbursement payment for
	the tax year for which the deadline applies.
	(f) The comptroller shall review each application by a
	taxing unit to determine whether the taxing unit is entitled to a
	border security tax credit reimbursement payment. If the
	comptroller determines that the taxing unit is entitled to the
	payment, the comptroller shall remit the payment to the taxing unit
	not later than the 30th day after the date the application for the
	payment is made.
	(g) The comptroller shall make border security tax credit
	reimbursement payments using money in the Texas Enterprise Fund.
	In the event that the Texas Enterprise Fund does not maintain a
	positive balance on the date the comptroller is required to make a
	payment, the comptroller shall make the payment using undedicated
	money in the general revenue fund.
	(h) The comptroller may adopt rules to implement and
	administer this section.
	SECTION 4. This Act applies only to ad valorem taxes imposed
	for a tax year beginning on or after the effective date of this Act.
	SECTION 5. This Act takes effect January 1, 2023, but only
	if the constitutional amendment proposed by the 87th Legislature,
	3rd Called Session, 2021, to authorize the legislature to provide
	for a credit against the ad valorem taxes imposed on property owned
	by a person who makes a donation to the state for the purpose of
	border security and to provide for the reimbursement of political
	subdivisions for the revenue loss incurred as a result of the credit
	is approved by the voters. If that amendment is not approved by the
	voters, this Act has no effect.