Bill Text: TX HB1596 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to a local option exemption from ad valorem taxation by a county, municipality, or junior college district of a portion of the appraised value of the income-producing tangible personal property owned by certain veteran-owned businesses during the businesses' initial period of operation in this state.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-03-04 - Referred to Ways & Means [HB1596 Detail]

Download: Texas-2019-HB1596-Introduced.html

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86R2296 SMT-F
By: Lambert H.B. No. 1596

A BILL TO BE ENTITLED
AN ACT
relating to a local option exemption from ad valorem taxation by a
county, municipality, or junior college district of a portion of
the appraised value of the income-producing tangible personal
property owned by certain veteran-owned businesses during the
businesses' initial period of operation in this state.
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. INCOME-PRODUCING PERSONAL PROPERTY OF
VETERAN-OWNED BUSINESS. (a) In this section, "qualifying
veteran-owned business" means a business:
(1) in which each owner is an individual who served in
and was honorably discharged from a branch of the United States
armed forces; and
(2) that first begins doing business in this state on
or after January 1, 2020.
(b) A qualifying veteran-owned business is entitled to an
exemption from taxation by a county, municipality, or junior
college district of a portion, expressed as a dollar amount, of the
appraised value of the income-producing tangible personal property
owned by and used in the operation of the business if:
(1) the exemption is sought for a tax year beginning
not later than the fifth anniversary of the date on which the
qualifying veteran-owned business began operating in this state;
and
(2) the exemption is adopted by:
(A) the governing body of the county,
municipality, or junior college district in the manner provided by
law for official action by the governing body; or
(B) a favorable vote of a majority of the
qualified voters of the county, municipality, or junior college
district at an election called by the governing body of the county,
municipality, or junior college district, as applicable.
(c) The governing body of a county, municipality, or junior
college district shall call an election described by Subsection
(b)(2)(B) on the petition of at least five percent of the number of
qualified voters who voted in the most recent election of the
county, municipality, or junior college district, as applicable.
(d) The amount of an exemption adopted as provided by
Subsection (b) is $30,000 of the appraised value unless a smaller
amount is specified by:
(1) the governing body authorizing the exemption if
the exemption is authorized as provided by Subsection (b)(2)(A); or
(2) the petition for the election if the exemption is
authorized as provided by Subsection (b)(2)(B).
(e) Once authorized, an exemption adopted as provided by
Subsection (b) may be repealed or decreased or increased in amount
by the governing body of the county, municipality, or junior
college district or by the procedure authorized by Subsection
(b)(2)(B). In the case of an increase, the amount of the exemption
may not be increased to more than $30,000 of the appraised value.
SECTION 2. 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 3. This Act takes effect January 1, 2020, but only
if the constitutional amendment authorizing a local option
exemption from ad valorem taxation by a county, municipality, or
junior college district of a portion of the market value of the
income-producing tangible personal property owned by a
veteran-owned business during the business's initial period of
operation in this state is approved by the voters. If that
amendment is not approved by the voters, this Act has no effect.