Bill Text: TX SB1821 | 2015-2016 | 84th Legislature | Engrossed

Texas Senate Bill 1821 (Prior Session Legislation)

Bill Title: Relating to a local option exemption from ad valorem taxation of a portion of the appraised value of real property of a business that employs honorably discharged veterans.

Sponsorship: Bipartisan Bill

Status: (Engrossed - Dead) 2015-05-04 - Referred to Ways & Means [SB1821 Detail]

Download: Texas-2015-SB1821-Engrossed.html



	By: Campbell, Menéndez	S.B. No. 1821


	A BILL TO BE ENTITLED
	AN ACT
	relating to a local option exemption from ad valorem taxation of a
	portion of the appraised value of real property of a business that
	employs honorably discharged veterans.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
	adding Section 11.37 to read as follows:
	Sec. 11.37. CERTAIN BUSINESSES EMPLOYING VETERANS. (a) In
	this section:
	(1) "Qualifying business" means a business located in
	this state that on or after January 1, 2016:
	(A) hires at least one veteran; and
	(B) provides full-time employment to that
	veteran for a period of at least 12 consecutive months.
	(2) "Qualifying property" means real property located
	in this state that is owned by, and used primarily for the business
	purposes of, a qualifying business.
	(3) "Veteran" means an individual who:
	(A) has served on active duty in the armed forces
	of the United States; and
	(B) was honorably discharged from military
	service.
	(b) Subject to Subsection (d), the governing body of a
	taxing unit may agree in writing with the owner of a qualifying
	business to exempt from taxation a portion of the appraised value of
	the owner's qualifying property for a period not to exceed 10 years,
	on the condition that, during that period, the owner of the property
	meets or exceeds goals for the employment of one or more veterans.
	The amount of the exemption may not exceed $15,000 of the appraised
	value of the qualifying property for each veteran employed by the
	qualifying business.
	(c) Before entering into a tax exemption agreement under
	Subsection (b), the governing body of a taxing unit shall adopt
	guidelines and criteria for such agreements. The guidelines and
	criteria adopted under this subsection:
	(1) are effective until the second anniversary of the
	date of their adoption by the governing body;
	(2) must include the minimum exemption amount to which
	a qualifying business is entitled; and
	(3) may provide for different exemption amounts based
	on reasonable factors, including the amount of compensation paid to
	each veteran employed and whether the veteran receives certain
	employment benefits.
	(d) The governing body of a taxing unit may not enter into a
	tax exemption agreement under Subsection (b) unless the governing
	body finds that the terms of the agreement and the property subject
	to the agreement meet the guidelines and criteria adopted by the
	governing body under Subsection (c).
	(e) A tax exemption agreement under this section is subject
	to the rights of holders of the outstanding bonds of the taxing
	unit.
	SECTION 2. Section 11.43(c), Tax Code, is amended to read as
	follows:
	(c) An exemption provided by Section 11.13, 11.131, 11.132,
	11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, 11.20, 11.21, 11.22,
	11.23(h), (j), or (j-1), 11.231, 11.254, 11.271, 11.29, 11.30,
	11.31, [or] 11.315, or 11.37, once allowed, need not be claimed in
	subsequent years, and except as otherwise provided by Subsection
	(e), the exemption applies to the property until it changes
	ownership or the person's qualification for the exemption changes.
	However, the chief appraiser may require a person allowed one of the
	exemptions in a prior year to file a new application to confirm the
	person's current qualification for the exemption by delivering a
	written notice that a new application is required, accompanied by
	an appropriate application form, to the person previously allowed
	the exemption.
	SECTION 3. This Act applies only to ad valorem taxes imposed
	for a tax year that begins on or after the effective date of this
	Act.
	SECTION 4. This Act takes effect January 1, 2016, but only
	if the constitutional amendment proposed by the 84th Legislature,
	Regular Session, 2015, authorizing the governing body of a
	political subdivision to adopt a local option exemption from ad
	valorem taxation of a portion, expressed as a dollar amount, of the
	market value of real property of a business that employs honorably
	discharged veterans is approved by the voters. If that amendment is
	not approved by the voters, this Act has no effect.