Bill Text: TX SB329 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to a credit against the ad valorem taxes imposed on the property of certain businesses that are required to close by an order, proclamation, or other instrument issued by a state or local official as a result of a disaster.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2021-03-09 - Referred to Finance [SB329 Detail]
Download: Texas-2021-SB329-Introduced.html
87R1269 CJC-D | ||
By: Paxton | S.B. No. 329 |
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relating to a credit against the ad valorem taxes imposed on the | ||
property of certain businesses that are required to close by an | ||
order, proclamation, or other instrument issued by a state or local | ||
official as a result of a disaster. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 31, Tax Code, is amended by adding | ||
Section 31.038 to read as follows: | ||
Sec. 31.038. TAX CREDIT FOR CERTAIN BUSINESSES CLOSED BY | ||
OFFICIAL ORDER. (a) In this section: | ||
(1) "Qualifying official order" means an order, | ||
proclamation, or other instrument issued by the governor, another | ||
official of this state, or the governing body or an official of a | ||
political subdivision of this state in response to a disaster. | ||
(2) "Qualifying small business" means a business that: | ||
(A) has fewer than 100 employees; | ||
(B) is required to close by a qualifying official | ||
order; and | ||
(C) if not for the qualifying official order, | ||
would be capable of engaging in normal business activity during the | ||
period the business is required to be closed. | ||
(b) A person who owns property that is reasonably necessary | ||
for and used by the person to operate a qualifying small business is | ||
entitled to a credit against the taxes imposed in a tax year on the | ||
property by each taxing unit that taxes the property. | ||
(c) The amount of the credit to which a property owner is | ||
entitled under this section against the taxes imposed in a tax year | ||
on the property by a taxing unit is computed by multiplying the | ||
amount of taxes imposed on the property by the taxing unit by a | ||
fraction, the denominator of which is 365 and the numerator of which | ||
is the number of days in the preceding tax year the qualifying small | ||
business the property is used to operate was closed due to a | ||
qualifying official order but would otherwise have been open. | ||
(d) A property owner must file an application with the chief | ||
appraiser of the appraisal district in which the property is | ||
located each year to receive a credit under this section. The | ||
application must include an affidavit stating the number of days in | ||
the preceding tax year that the qualifying small business the | ||
person operates was closed due to a qualifying official order but | ||
would otherwise have been open and include any relevant information | ||
or documentation required by the application form. | ||
(e) The chief appraiser shall forward a copy of the | ||
application to the assessor for each taxing unit that taxes the | ||
property. | ||
(f) The comptroller shall adopt rules for the | ||
administration of this section, including rules prescribing the | ||
form of an application for a credit. | ||
SECTION 2. This Act applies only to ad valorem taxes imposed | ||
for a tax year beginning on or after the effective date of this Act. | ||
SECTION 3. This Act takes effect January 1, 2022, but only | ||
if the constitutional amendment proposed by the 87th Legislature, | ||
Regular Session, 2021, authorizing the legislature to provide for a | ||
credit against the ad valorem taxes imposed on the property of | ||
certain businesses that are required to close by an order, | ||
proclamation, or other instrument issued by a state or local | ||
official as a result of a disaster is approved by the voters. If | ||
that amendment is not approved by the voters, this Act has no | ||
effect. |