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A BILL TO BE ENTITLED
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AN ACT
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relating to a local option exemption from ad valorem taxation by a |
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county, municipality, or junior college district of a portion of |
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the appraised value of the income-producing tangible personal |
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property owned by certain veteran-owned businesses during the |
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businesses' initial period of operation in this state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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adding Section 11.37 to read as follows: |
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Sec. 11.37. INCOME-PRODUCING PERSONAL PROPERTY OF |
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VETERAN-OWNED BUSINESS. (a) In this section, "qualifying |
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veteran-owned business" means a business: |
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(1) in which each owner is an individual who served in |
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and was honorably discharged from a branch of the United States |
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armed forces; and |
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(2) that first begins doing business in this state on |
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or after January 1, 2020. |
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(b) A qualifying veteran-owned business is entitled to an |
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exemption from taxation by a county, municipality, or junior |
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college district of a portion, expressed as a dollar amount, of the |
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appraised value of the income-producing tangible personal property |
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owned by and used in the operation of the business if: |
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(1) the exemption is sought for a tax year beginning |
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not later than the fifth anniversary of the date on which the |
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qualifying veteran-owned business began operating in this state; |
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and |
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(2) the exemption is adopted by: |
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(A) the governing body of the county, |
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municipality, or junior college district in the manner provided by |
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law for official action by the governing body; or |
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(B) a favorable vote of a majority of the |
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qualified voters of the county, municipality, or junior college |
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district at an election called by the governing body of the county, |
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municipality, or junior college district, as applicable. |
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(c) The governing body of a county, municipality, or junior |
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college district shall call an election described by Subsection |
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(b)(2)(B) on the petition of at least five percent of the number of |
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qualified voters who voted in the most recent election of the |
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county, municipality, or junior college district, as applicable. |
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(d) The amount of an exemption adopted as provided by |
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Subsection (b) is $30,000 of the appraised value unless a smaller |
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amount is specified by: |
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(1) the governing body authorizing the exemption if |
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the exemption is authorized as provided by Subsection (b)(2)(A); or |
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(2) the petition for the election if the exemption is |
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authorized as provided by Subsection (b)(2)(B). |
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(e) Once authorized, an exemption adopted as provided by |
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Subsection (b) may be repealed or decreased or increased in amount |
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by the governing body of the county, municipality, or junior |
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college district or by the procedure authorized by Subsection |
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(b)(2)(B). In the case of an increase, the amount of the exemption |
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may not be increased to more than $30,000 of the appraised value. |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year that begins on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect January 1, 2020, but only |
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if the constitutional amendment authorizing a local option |
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exemption from ad valorem taxation by a county, municipality, or |
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junior college district of a portion of the market value of the |
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income-producing tangible personal property owned by a |
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veteran-owned business during the business's initial period of |
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operation in this state is approved by the voters. If that |
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amendment is not approved by the voters, this Act has no effect. |