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A BILL TO BE ENTITLED
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AN ACT
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relating to limitations applicable to certain agreements providing |
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for a rebate of municipal sales and use taxes or a grant or loan |
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based on those taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 321, Tax Code, is amended |
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by adding Section 321.006 to read as follows: |
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Sec. 321.006. MAXIMUM AMOUNT OF CERTAIN TAX INCENTIVES. |
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(a) This section applies to an agreement between a municipality or |
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a local government corporation or other entity created by a |
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municipality and a business under which: |
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(1) the business agrees to relocate to the |
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municipality from one or more other municipalities in this state; |
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and |
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(2) the municipality, corporation, or other entity |
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agrees to: |
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(A) rebate to the business an amount of tax |
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imposed by the municipality under this chapter or an amount of |
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revenue derived from that tax; or |
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(B) provide a grant or loan to the business in an |
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amount that is based on an amount of tax imposed by the municipality |
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under this chapter or based on an amount of revenue derived from |
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that tax. |
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(b) Notwithstanding any other law, if a business is |
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relocating from one municipality in this state to another |
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municipality pursuant to an agreement described by Subsection (a): |
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(1) the amount of a rebate, grant, or loan described by |
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Subsection (a) may not exceed the amount of any similar rebate, |
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grant, or loan provided by the municipality from which the business |
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is relocating; and |
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(2) the duration of an agreement described by |
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Subsection (a) may not exceed the duration of any similar agreement |
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between the business and the municipality from which the business |
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is relocating. |
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(c) Notwithstanding any other law, if a business is |
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relocating from more than one municipality in this state to another |
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municipality pursuant to an agreement described by Subsection (a): |
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(1) the amount of a rebate, grant, or loan described by |
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Subsection (a) may not exceed the weighted average amount of any |
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similar rebates, grants, and loans provided by the municipalities |
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from which the business is relocating, weighted according to the |
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amount of taxes under this chapter collected by the business in each |
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of those municipalities; and |
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(2) the duration of an agreement described by |
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Subsection (a) may not exceed the weighted average duration of any |
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similar agreements between the business and the municipalities from |
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which the business is relocating, weighted according to the amount |
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of taxes under this chapter collected by the business in each of |
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those municipalities. |
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SECTION 2. Section 321.006, Tax Code, as added by this Act, |
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does not apply to an agreement entered into before the effective |
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date of this Act, except that Section 321.006, Tax Code, as added by |
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this Act, does apply to any renewal, modification, or extension of |
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the agreement that occurs on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect September 1, 2025. |