These abatements are local agreements between a taxpayer and a taxing unit that exempts all or part of the increase in the value of the real property and/or tangible personal property from taxation for a period not to exceed 10 years. Up to 10 year property tax exemptions at an amount up to 100% for improvements to existing property.
Chapter 312 agreements attract more businesses to Texas and spur the local economy, creating jobs.
Chapter 312 agreements have been criticized for a perceived lack of transparency and public participation.
Chapter 312 helps invest in rural areas.
Chapter 312 is corporate welfare.
The Texas Chapter 313 program created appraised value limitations agreements. They target capital intensive investments for tax relief through a property tax appraisal cap for 10 years on school district M&O property taxes. This program requires this incentive to be a “determining factor” in an applicant’s decision to invest in Texas. The program is unique in that local school districts, as opposed to economic developers, participate in the program, with the authority to veto a firm’s petition for incentives. By participating in this program, school districts can legally request “supplemental payments” from firms, often amounting to more than 40% of the provided tax benefits. Often, these investments are select manufacturing, technology, and renewable-energy projects.
Chapter 313 agreements attract more businesses to Texas and spur the local economy, creating jobs.
Most businesses would be investing in Texas even without the tax break.
School districts that are in fast-growth districts support 313 agreements because they expand and enlarge the ad valorem property tax base of this state.
It’s a big loss of funding to public schools (e.g. in 2019, the Comptroller’s office estimates $584.9 million in revenue will be lost due to the program, and anticipates that number will rise to over $1 billion by 2023).
Chapter 313 encourages economic growth and opportunity in the parts of Texas that need it most.
Chapter 313 is corporate welfare. It unfairly burdens residential homeowners in paying for education. They should be paying for the common good, educating Texans.
Sales Tax Swap
The sales tax swap would raise the state sales and use tax rate from 6.25 percent to 7.25 percent and reduce school district property tax rates to equal the amount of revenue gained from that increase.
Reduces tax burden on homeowners as school M&O property taxes takes up the majority of a property tax bill.
Hurts the poor the most because the sales tax is a regressive tax. The only people who benefit from this policy are those making above $100,000.
One of the two ways to protest your property appraisals is “equity appeals,” which allows a property owner to argue their property was not treated the same as similar real estate during appraisals.
The equity appeals process stops taxing units from imposing unfair taxes.
This appeals process shifts the burden of property taxes from corporations onto homeowners to the tune of $44 billion a year of property value and $1 billion a year in collected school property taxes in just the state’s largest five counties, per San Antonio Express-News. In large part this is because of the expensive nature of filing a lawsuit using this process.
Made it easier to seek “equal and uniform taxation” without a lot of experts and a lot of time and money.
The process is too burdensome for the average residential homeowner.