Texas State Capitol in Austin
The first half of the 88th regular session of the Texas Legislature has come and gone. The drafting of bills and ceremonial resolutions have given way to committee hearings and floor votes on crucial pieces of legislation that will shape the state of Texas for years to come. As of late March, here is where a few of the Fort Worth Chamber’s top priorities stand.
Economic Development Incentives
In December 2022, Chapter 313 of the Texas Tax Code expired. The expiration marked the end to an incentive used to help Texas attract capital intensive projects through local school district property tax abatements. While Texas maintains a reputation of being a business-friendly and low tax regulatory environment, the state actually ranks toward the top in the country in terms of tax burden on businesses. Chapter 313 was a critical tool in keeping Texas competitive with other states working to attract economic development projects that bring with them an immense amount of jobs and economic impact.
House Bill 5 was filed as the first proposal with apparent widespread support to replace Chapter 313. A committee hearing for HB 5 is anticipated for April, and could ultimately become the vehicle through which Texas secures a new economic development tool that helps keep the state competitive.
Property Tax Reform
With a record budget surplus of more than $32 billion, state leaders have called for property tax reform to be a major component of this year’s session. The House and Senate have differing proposals on the table, but both plans promise to use roughly half of the surplus toward property tax relief for Texans.
The House’s proposal centers around a 5% cap on appraisal growth year over year and extending the appraisal cap from not just residential properties but commercial properties as well. Meanwhile in the Texas Senate, their proposals center around raising the homestead exemption from $40,000 to $70,000, which is estimated to save the average Texan roughly $800 annually.
Community College Finance
During the interim, the Texas Commission on Community College Finance was tasked with studying alternate funding mechanisms for the state’s community colleges. The commission outlined a proposal to tie funding to outcomes — certifications and credentials obtained, transferring to a four-year university, etc. — rather than funding being tied largely to enrollment. The recommendation has so far been met with widespread bipartisan support, and the new funding is included in both the House and Senate’s initial budget proposals.
Tarrant County College serves more than 40,000 students who represent the future of the Texas workforce. Ensuring their education and development are adequately funded is crucial to the state’s continued long-term economic well-being.
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In addition to these three priority items, the Fort Worth Chamber is committed to continued advocacy on behalf of its members until adjournment of the Texas Legislature and beyond. The prosperity of our community depends on strong businesses with a well-equipped workforce, and the Chamber intends to ensure they have a voice during the legislative process.