Chapter 313 Agreements

Chapter 313 Agreements

Posted by fran | 5 diciembre, 2020

The HB 3676 of the legislature of 2009 obliges the meter office to publish on its website certain documents relating to applications for limitation of the value of Chapter 313 and agreements within a fortnight of their creation or acceptance. A Tax Exemptions and Tax Incidence Report prepared by Texas Comptroller in November 2018 estimated that school district revenues would decline by about $585 million in 2019, which also indicates that total school district revenues could be reduced by $944 million in 2022 and $1.1 billion in 2024. [8] Since 2013, the Texas Comptroller has had to decide whether a proposed project likely generates enough public and local tax revenue to offset the tax losses resulting from the prescription agreement within 25 years. Comptroller`s office also needs to note that the restriction is “a determining factor” in the company`s decision to invest and build in Texas. Without certification, school districts cannot enter into prescription agreements. Much of the tax revenue that has eluded school districts under Chapter 313 is being replaced by public resources, placing the burden of local agreements on all Texas taxpayers. This is despite the fact that school districts are allowed to negotiate “additional payments” with companies seeking an agreement. Take, for example, the promise to attract high-paying jobs to Texas. Brimer, the author of the program, hoped one day to need 100 high-paying jobs as a condition of an agreement. When his bill was passed in 2001, that number fell to 25 jobs – and only 10 in rural areas.

But even this target was too high for some companies, especially wind farms, which do not employ many people. The legislator agreed on a simple solution: districts can give up the employment obligation altogether. The Observer`s review of program records shows that in more than 150 of the agreements today – about half – companies do not even promise to create 10 jobs. Seven agreements promise zero employment. Supporters of the program argue that High local tax rates in Texas penalize the state when it competes for companies that make new investments. Business groups say tax breaks are largely responsible for the “Texas Miracle” and attract projects that would not otherwise have come to Texas. Without program 313, they say Texas cannot compete with other states for new business investment. Supporters of the program argue that reducing real estate revenues in local school districts does not entail real costs to the state and say that “but” for the program, none of the companies bidding for the reduction would have their headquarters in Texas. [9] [10] [11] [12] [13] [14] Proponents further point out that Chapter 313 is extremely transparent and that even with Denchpter`s Agreements 313, school taxation bases are increased. [15] Our goal is to ensure that a Chapter 313 agreement is developed in the best interests of the school district.

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