By: Slaton H.B. No. 5032
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a credit against the ad valorem taxes imposed on
  property owned by a person who makes a donation to the state for the
  purpose of border security and reimbursement to taxing units for
  the revenue loss incurred as a result of the credit.
         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 DONATIONS TO SUPPORT BORDER
  SECURITY EFFORTS. (a)  In this section:
               (1)  "Border security efforts" means programs or
  activities undertaken and funded by this state or an agency of this
  state to secure the international border of this state with the
  United Mexican States.
               (2)  "Business entity" means a legal entity, including
  a corporation or partnership, that is formed for the purpose of
  making a profit.
               (3)  "Principal office" means the location where the
  decision makers for a business entity conduct the daily affairs of
  the business.
         (b)  An owner of property is entitled to a credit against the
  taxes imposed in a tax year on that property by a taxing unit if the
  owner:
               (1)  is:
                     (A)  a United States citizen residing in this
  state; or
                     (B)  a business entity whose principal office is
  located in this state; and
               (2)  donates money to this state in support of border
  security efforts.
         (c)  The amount of the credit to which a property owner is
  entitled under this section is equal to the lesser of:
               (1)  the total amount of money the property owner
  donated to this state in support of border security efforts during
  the preceding 12-month period; or
               (2)  the total amount of taxes imposed on the property
  by all of the taxing units that tax the property.
         (d)  The amount of the credit must first be applied against
  the taxes imposed on the property by the school district in which
  the property is located. If, after applying the credit against the
  taxes imposed on the property by the school district, any amount of
  the credit remains, that amount applies against the taxes imposed
  on the property by each taxing unit in which the property is located
  other than the school district in an amount computed by multiplying
  the remaining amount of the credit by a fraction, the numerator of
  which is the amount of taxes imposed on the property by the
  applicable taxing unit and the denominator of which is the total
  amount of taxes imposed on the property by all of the taxing units
  other than the school district that tax the property.
         (e)  The property owner must file an application each year
  with the chief appraiser of the appraisal district in which the
  property is located to receive a credit under this section.  The
  application must include an affidavit stating the amount of the
  donations described by Subsection (b)(2) made by the property owner
  during the preceding 12-month period and include any relevant
  information or documentation required by the application form.
         (f)  The chief appraiser shall forward a copy of the
  application to the assessor for each taxing unit that taxes the
  property.  The assessors for the taxing units shall consult with one
  another as necessary to compute the amount of credit, if any, to be
  granted by each taxing unit.
         (g)  The comptroller shall adopt rules for the
  implementation and administration of this section, including rules
  prescribing the form of an application for the credit and
  specifying the 12-month period during which donations may be used
  to calculate the credit.
         SECTION 2.  Section 481.078, Government Code, is amended by
  amending Subsection (c) and adding Subsection (d-2) to read as
  follows:
         (c)  Except as provided by Subsections (d), [and] (d-1), and
  (d-2), the fund may be used only for economic development,
  infrastructure development, community development, job training
  programs, and business incentives.
         (d-2)  The fund may be used by the comptroller to make border
  security tax credit reimbursement payments in the manner prescribed
  by Section 140.010, Local Government Code.
         SECTION 3.  Chapter 140, Local Government Code, is amended
  by adding Section 140.010 to read as follows:
         Sec. 140.010.  BORDER SECURITY TAX CREDIT REIMBURSEMENT
  PAYMENTS. (a)  In this section, "taxing unit" and "tax year" have
  the meanings assigned by Section 1.04, Tax Code.
         (b)  A taxing unit is entitled to a border security tax
  credit reimbursement payment from the state for a tax year for which
  the chief appraiser of the appraisal district in which the taxing
  unit participates approves an application for a credit under
  Section 31.038, Tax Code.
         (c)  The amount of the border security tax credit
  reimbursement payment is equal to the revenue loss incurred by the
  taxing unit as a result of the credit under Section 31.038, Tax
  Code, in the tax year for which the border security tax credit
  reimbursement payment is sought.
         (d)  Not later than April 1 of the year following the tax year
  for which the border security tax credit reimbursement payment is
  sought, the taxing unit may submit an application to the
  comptroller to receive a border security tax credit reimbursement
  payment for that tax year.  The application must be made on a form
  prescribed by the comptroller.
         (e)  A taxing unit that does not submit an application to the
  comptroller by the date prescribed by Subsection (d) is not
  entitled to a border security tax credit reimbursement payment for
  the tax year for which the deadline applies.
         (f)  The comptroller shall review each application by a
  taxing unit to determine whether the taxing unit is entitled to a
  border security tax credit reimbursement payment.  If the
  comptroller determines that the taxing unit is entitled to the
  payment, the comptroller shall remit the payment to the taxing unit
  not later than the 30th day after the date the application for the
  payment is made.
         (g)  The comptroller shall make border security tax credit
  reimbursement payments using money in the Texas Enterprise Fund.
  In the event that the Texas Enterprise Fund does not maintain a
  positive balance on the date the comptroller is required to make a
  payment, the comptroller shall make the payment using undedicated
  money in the general revenue fund.
         (h)  The comptroller may adopt rules to implement and
  administer this section.
         SECTION 4.  This Act applies only to ad valorem taxes imposed
  for a tax year beginning on or after the effective date of this Act.
         SECTION 5.  This Act takes effect January 1, 2025, but only
  if the constitutional amendment proposed by the 88th Legislature,
  Regular Session, 2023, to authorize the legislature to provide for
  a credit against the ad valorem taxes imposed on property owned by a
  person who makes a donation to the state for the purpose of border
  security and to provide for the reimbursement of political
  subdivisions for the revenue loss incurred as a result of the credit
  is approved by the voters.  If that amendment is not approved by the
  voters, this Act has no effect.