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Relating to the Property Redevelopment and Tax Abatement Act.
No fiscal implication to the State is anticipated.
Under Chapter 312 of the Texas Tax Code, cities, counties, and various special purpose districts may offer tax abatements to certain businesses. It is set to expire this year unless the legislature extends the deadline.
HB 3143 would make changes to requirements for taxing units with respect to the Chapter 312 tax abatement process. The bill would require taxing units to hold public hearings regarding any adoption, amendment, repeal, or reauthorization of guidelines and would also require the unit to post guidelines and criteria governing tax abatement agreements on the Internet. The bill would additionally require a chief appraiser to deliver a report to the Comptroller containing the appraised value of the property following the subject of a tax abatement agreement for the first three years following the expiration of the agreement. Lastly, the bill would require tax abatement agreements to include fiscal impact statements.
This bill improve transparency with respect to the Chapter 312 property tax abatement process, which as it exists is a murky process designed to shield subsidies to big business from public view. The transparency that HB 3143 would bring to this process supports our principle of limited government. We support HB 3143.