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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 or municipality of a portion of the appraised value of real |
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property of a business that provides, or pays for the provision of, |
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certain services for honorably discharged veterans without cost. |
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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 11.38 to read as follows: |
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Sec. 11.38. CERTAIN BUSINESSES PROVIDING SERVICES TO |
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VETERANS. (a) In this section: |
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(1) "Qualifying business" means a business located in |
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this state that during the preceding tax year: |
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(A) provided at least $5,000 of qualifying |
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services to at least one qualifying veteran; or |
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(B) paid at least $5,000 to a provider to |
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reimburse the provider for costs incurred in providing qualifying |
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services to at least one qualifying veteran. |
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(2) "Qualifying services" means any of the following, |
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if provided to a veteran without cost: |
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(A) housing; |
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(B) substance abuse treatment; |
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(C) residential treatment services; |
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(D) case management services; or |
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(E) mental health counseling. |
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(3) "Qualifying veteran" means an individual who: |
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(A) has served on active duty in the armed forces |
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of the United States; |
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(B) was honorably discharged from military |
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service; and |
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(C) on or after January 1, 2019, receives |
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qualifying services provided or paid for by a qualifying business. |
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(b) Subject to Subsection (c), a person is entitled to an |
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exemption from taxation by a county or municipality of a portion, |
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expressed as a dollar amount, of the appraised value of real |
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property the person owns that is reasonably necessary for and used |
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by the person in the operation of a qualifying business if the |
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exemption is adopted by the governing body of the county or |
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municipality, as applicable, in the manner provided by law for |
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official action by the governing body. |
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(c) The amount of the exemption authorized under this |
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section for a tax year is a dollar amount equal to the lesser of: |
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(1) $300,000; or |
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(2) the product of $15,000 and the number of |
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qualifying veterans that received qualifying services provided or |
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paid for by the qualifying business. |
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(d) The chief appraiser may require a person who applies for |
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an exemption under this section to present additional information |
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establishing eligibility for the exemption. |
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(e) The governing body of the county or municipality may |
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repeal the exemption in the manner provided by law for official |
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action by the governing body. |
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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 proposed by the 86th Legislature, |
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Regular Session, 2019, authorizing the governing body of a county |
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or municipality to adopt a local option exemption from ad valorem |
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taxation of a portion, expressed as a dollar amount, of the market |
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value of real property of a business that provides, or pays for the |
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provision of, certain services for honorably discharged veterans |
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without cost is approved by the voters. If that amendment is not |
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approved by the voters, this Act has no effect. |