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State Legislators Must Take Action to Extend Chapter 312 and Chapter 313

Per our 2019 Legislative Agenda, the Round Rock Chamber supports economic development tools that maintain and strengthen our city’s economic development competitive edge in business attraction, retention, and expansion. Tax abatements are one such tool. This session, state legislators must take action to extend Chapter 312 and Chapter 313 which allow school districts, counties, cities, and special districts to establish short-term tax exemptions.

In a recent op-ed, Jeff Mosely, CEO of the Texas Association of Business, explained that these tax exemptions “are for attracting new projects which in turn encourage the growth of existing businesses, bring jobs and new taxpayers, who then contribute to the overall tax base and do not affect the tax rates of current businesses or homeowners.”

Chapter 312 allows counties, cities, and special districts to agree to temporary tax exemptions up to 100 percent. Chapter 312 is set to expire on September 1, 2019. House Bill 360 by State Representative Jim Murphy extends the expiration date to September 1, 2029.

Chapter 313 allows school districts to agree to temporary, partial tax exemptions up to a ten-year period. Chapter 313 is set to expire on December 31, 2022. House Bill 2129 by State Representative Jim Murphy extends the expiration date to September 1, 2032.

The two bills have passed the House and are now awaiting hearings in the Senate Committee on Natural Resources and Economic Development.

Recent Articles For Your Information:

Commentary: Texans suffer if tax relief tools are allowed to expire (April 23, 2019)