Death of tax cuts: road to ending tax cuts for economic development
The Texas Senate, which started out as a dream for those who oppose tax incentives, declined to consider a bill to renew the Chapter 313 program for two years, actually suggesting future dissolution.
“It was a burden in itself,” said Senator Royce Colhorst (Republican Brenham), one of the senators who opposed the bill. Texan“The organization was very uncomfortable with the program as it stood and could not find a consensus on what the program should look like.”
“Chapter 313” is a section of the state code that allows school districts to provide economic development mitigation measures to businesses moving to the area. Established in 2001 under the leadership of then Governor Rick Perry, Congress renewed it for 10 years in 2011 and was also renewed this year.
If you do not update this session, the program will close.
By taking advantage of the cuts, companies promise to create a number of jobs. Of the existing Chapter 313 prices, half are owned by renewable energy companies and 47% are allocated to “manufacturing” companies, including oil and gas suppliers.
Ann Analysis Through Houston Chronicle Priced the extension at $ 10.8 billion and $ 211,600 per job.
During the first 15 years of the program, companies that received mitigation measures Usually created More work than they promised.
“For over a decade we have seen some inconsistencies, such as the way the program has been used and deviated from its original purpose, and we have called for transparency and a change in the program,” added Cork Holst.
Senator Bob Hall (R-Edgewood), a colleague of Colhorst, also celebrated the death of HB 4242.
“Since the first day of my inauguration, I have dedicated myself to ending the Chapter 313 tax reduction, which increases the property tax of citizens, in order to pay the property tax of the company through the program of capitalism cronyism, ”Hall said. .. Texan In the statement.
“Last night the Senate killed HB 4242 and terminated the program. This is a huge victory for Texas taxpayers. “
There were two laws to renew the program, one for a simple two-year renewal of the current structure and the other for a 10-year extension and major extension of the qualification.
This last one is Authorized companies Effectively double the reduction effect by renovating existing facilities.
“This legislative update is important for Texas to continue to compete globally. It’s a great opportunity to move Texas forward, ”said Bill author Jim Murphy, Republican-Houston. Defend the bill.
Various Conservatives voiced a series of opposition and were successful in adding an amendment that completely removed the expansion aspect of the bill, extending it for only 10 years.
It’s a 2-year extension, House building (HB) 4242, Sailed relatively well in the body.Only 21 limbs Voted against He became the last passage and moved to the upper chamber.
For all intents and purposes, that seemed to be it. Chapter 313 opponents pulled off a more ambitious version of the torpedo attack, but with simple, short expansions. It looked like.
Surrounding this public battle are strange buildings of compatriots, including the two most influential think tanks in the state, the Conservative Texas Public Policy Foundation (TPPF) and the Progressive Every Texas. It was a coalition.
The couple oppose the program, Joint statement Shortly before the House of Representatives considered the two bills.
The statement is 2017 study He found that 85% to 95% of companies that benefited from the Chapter 313 deal would move to Texas anyway.
Other issues raised by the two include the diversion of education funds into tax deductions, while promises of job creation can be and are often canceled.
The snowballs that these groups began to roll were brought to the Senate.
At a Senate committee hearing, Colhorst Declared The program was “wrapped” and had to be restarted “in a completely clean condition”.
Senator Brian Birdwell (Republican-Grandberry), the promoter of the bill, recognized the need to reform the program and proposed an alternative sentence that could be extended by a year to eliminate statutory loopholes.
back Two audiencesHB 4242 passed the Commission 11 days after being received from the House of Representatives with only two “no” votes by Senator Colhorst and Senator Brian Hughes (R-Mineola).
Meanwhile, a conspiracy debate in the Senate has delayed the bill’s introduction.
TPPF and Every Texan continued to press for the disbandment of the program.
And precious time continued to pass every moment.
In a last-minute attempt to salvage his run agenda, former Governor Rick Perry Tweeted Update call: “HB 4242 keeps TX # 1 for labor and investment.” To the Friends of the Senator from Texas: Open Texas for Business! Yes, with HB 4242. “
With the Senate deadline to pass the House bill, those with an interest in the fight were watching House minutes in anticipation of the possibility of a rhetorical battle over the agenda.
But that never happened. There was no vote for Birdwell to open a forum, let alone to pass the bill. From the outside, what started out as a torrent of rhetoric and jockey vanished into the sunset.
“Everyone knew what the 313 was, but I didn’t really do it,” Colhorst said, “it just got heavier on its own.”
Opponent of the Jeff Cason (Republican-Bedford) program Submitted law This session is to digest it completely Texan When the clock turned down on Wednesday night, “If 313 people died tonight, it would be of great benefit to Texas real estate taxpayers.” We have donated billions in property taxes. We need to stop putting more pressure on our people. “
Jason Isaacs, Life: Powered Project Director at TPPF and former State Representative, celebrated the program’s temporary death by saying: Texan“Ending this large-scale corporate wellness program is a big win for Texans.”
“Strong bipartisan support for the end of Chapter 313 is one of the most encouraging developments of this session,” said Isaac, one of the two signatories of the think tank’s joint statement. We look forward to welcoming more people and industries to the table in the pursuit of property tax relief for the people of Texas. “
HB 4242 is obsolete, but Colhorst warned that program updates could be “incorporated into the reports of certain conference committees.”
Before the champagne bottle shatters, the countdown to the end of the sign must be zero, and moving forward, Congress will either leave the program dead or radical reform. You have to face one or the other to revive it with.