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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 of a |
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portion of the appraised value of real property of a business that |
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employs honorably discharged veterans. |
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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. CERTAIN BUSINESSES EMPLOYING VETERANS. (a) In |
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this section: |
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(1) "Qualifying business" means a business located in |
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this state that on or after January 1, 2016: |
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(A) hires at least one veteran; and |
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(B) provides full-time employment to that |
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veteran for a period of at least 12 consecutive months. |
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(2) "Qualifying property" means real property located |
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in this state that is owned by, and used primarily for the business |
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purposes of, a qualifying business. |
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(3) "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; and |
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(B) was honorably discharged from military |
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service. |
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(b) Subject to Subsection (d), the governing body of a |
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taxing unit may agree in writing with the owner of a qualifying |
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business to exempt from taxation a portion of the appraised value of |
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the owner's qualifying property for a period not to exceed 10 years, |
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on the condition that, during that period, the owner of the property |
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meets or exceeds goals for the employment of one or more veterans. |
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The amount of the exemption may not exceed $15,000 of the appraised |
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value of the qualifying property for each veteran employed by the |
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qualifying business. |
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(c) Before entering into a tax exemption agreement under |
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Subsection (b), the governing body of a taxing unit shall adopt |
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guidelines and criteria for such agreements. The guidelines and |
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criteria adopted under this subsection: |
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(1) are effective until the second anniversary of the |
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date of their adoption by the governing body; |
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(2) must include the minimum exemption amount to which |
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a qualifying business is entitled; and |
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(3) may provide for different exemption amounts based |
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on reasonable factors, including the amount of compensation paid to |
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each veteran employed and whether the veteran receives certain |
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employment benefits. |
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(d) The governing body of a taxing unit may not enter into a |
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tax exemption agreement under Subsection (b) unless the governing |
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body finds that the terms of the agreement and the property subject |
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to the agreement meet the guidelines and criteria adopted by the |
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governing body under Subsection (c). |
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(e) A tax exemption agreement under this section is subject |
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to the rights of holders of the outstanding bonds of the taxing |
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unit. |
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SECTION 2. Section 11.43(c), Tax Code, is amended to read as |
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follows: |
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(c) An exemption provided by Section 11.13, 11.131, 11.132, |
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11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, 11.20, 11.21, 11.22, |
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11.23(h), (j), or (j-1), 11.231, 11.254, 11.271, 11.29, 11.30, |
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11.31, [or] 11.315, or 11.37, once allowed, need not be claimed in |
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subsequent years, and except as otherwise provided by Subsection |
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(e), the exemption applies to the property until it changes |
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ownership or the person's qualification for the exemption changes. |
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However, the chief appraiser may require a person allowed one of the |
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exemptions in a prior year to file a new application to confirm the |
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person's current qualification for the exemption by delivering a |
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written notice that a new application is required, accompanied by |
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an appropriate application form, to the person previously allowed |
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the exemption. |
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SECTION 3. 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 4. This Act takes effect January 1, 2016, but only |
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if the constitutional amendment proposed by the 84th Legislature, |
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Regular Session, 2015, authorizing the governing body of a |
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political subdivision to adopt a local option exemption from ad |
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valorem taxation of a portion, expressed as a dollar amount, of the |
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market value of real property of a business that employs honorably |
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discharged veterans is approved by the voters. If that amendment is |
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not approved by the voters, this Act has no effect. |