Bill Text: TX HB32 | 2021 | 87th Legislature 3rd Special Session | 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 | |
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| 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), [ |
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| (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. | ||
