84(R) - 2015
House Ways & Means
House Ways & Means
Relating to the eligibility of property for a limitation on appraised value for school district maintenance and operations ad valorem tax purposes under the Texas Economic Development Act.
A fiscal note dated May 11, 2015 anticipates no fiscal implication to the State or units of local government.
House Bill 1987 would amend Section 313.025(b) of the Tax Code under the Texas Economic Development Act to reduce from 90 days to 60 days the maximum number of days during which the comptroller wold be required to provide an economic impact evaluation for an application for a limitation on appraised value in a school district.
While the governing body of a school district must approve or disapprove an application not later than the 150th day after the application unless the economic impact evaluation has not been received, or an extension is agreed to by the governing body and the applicant, House Bill 1987 would give an additional exception if the recommendation of the Texas Economic Development and Tourism Office or its successor under Subsection (f-1) has not been received.
House Bill 1987 would reduce from 90 days to 60 days the period the comptroller would have, after the comptroller receives the copy of the application, to issue a certificate for a limitation on appraised value.
House Bill 1987 would would allow the governing body of a school district to request the the Texas Development and Tourism Office, or its successor, submit a recommendation as to whether the new jobs creation requirement should be reduced or waived, and if reduced, to what number. If such a request is made, the governing body of the school district would have to transmit a copy of the application to the tourism office, and notify the comptroller who would provide a copy f the economic impact evaluation to the office. The office would have to make their recommendation not later than 30 days after received a copy of the economic impact evaluation.
House Bill 1987 would allow the governing body to waive or reduce the new jobs creation requirement only if the office recommends waiving or reducing the requirement and only to the extent recommended by the office.
Vote Recommendation Notes
Under the Texas Economic Development Act, certain requirements regarding job creation must be fulfilled by qualifying businesses in order for them to be granted a limitation on the appraised value of property for purposes of the maintenance and operations portion of school district property taxes.
We support HB 1987 as it would protect the investments of businesses (particularly wind farms, as noted in the bill's analysis) which located to a school district for a tax break but, due to unforeseen circumstances, were unable to generate as many jobs as originally anticipated. Allowing the school districts to grant a waiver grants purview to the local level, where the respective situation can be watched more closely.