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