The Texas Senate and House have come to an agreement that could eliminate or decrease certain property taxes for businesses.
Those plans, though, also will mean significant losses in revenue for cities and counties, which could affect services those entities provide, such as parks and police and fire protection.
Currently, the state exempts $2,500 worth of value for business personal property value聽 性视界传媒 which聽includes things such as furniture, computers and inventory. Any changes聽would have to be approved in a state constitutional amendment election in November.
The National Federation of Independent 性视界传媒 previously expressed support for increasing the exemption for business personal property value.
性视界传媒淭his tax is unfair because it forces business owners to pay taxes on the same equipment, inventory, and furniture year after year,性视界传媒 Steve Burdett, NFIB state director, said in a statement. 性视界传媒淩aising the exemption beyond the current $2,500 would provide much-needed financial relief.性视界传媒
The final proposal the two chambers of the Legislature agreed to doesn't go as far as originally introduced by Rep. Morgan Meyer, R-Dallas,聽 in HB 9. That bill had called for a $250,000 exemption on values聽for business personal property. Sen. Paul Bettencourt, R-Houston, had proposed a $25,000 exemption. The House and Senate's agreement increases what was proposed by Bettencourt to $125,000.
聽性视界传媒淲e性视界传媒檝e got home and business property tax relief on the way at the Texas Legislature, and that性视界传媒檚 a happy day,性视界传媒 Bettencourt said in a statement.
Gregg County Judge Bill Stoudt had previously expressed concern about the proposal.
"I'm all for cutting the tax rate," he said, but added, "There's a point when you really start hurting small counties."
Longview City Manager Rolin McPhee said "nobody likes taxes." But two-thirds of the city budget is funded by property and sales taxes. That only other revenue the city can control is permits, fees and fines. While businesses might see their taxes decrease, it means city services will cost everyone else more money.
And in some cases, it could mean the city has to reduce services.
"We're really getting to a pinch point," McPhee said, where either fees for services will go up or services will be reduced.
Stoudt also said the state has in recent years passed legislation that affects counties' ability to generate revenue and passed laws that create unfunded mandates.
The original $250,000 proposal by the House would have would have cost Gregg County about $2.1 million in property tax revenue, according to information previously provided by Mark Cormier, chief appraiser at the Gregg Appraisal District. The new agreement would lower that amount.
"If they were to negotiate, we'd still take a hit," Stoudt said, and said he didn't think the $250,000 was a reasonable number.
For the city of Longview, the loss would have been almost $2.2 million under the $250,000 proposal. And under the original proposal, Kilgore would have lost $416,553; Gladewater, $153,590; and White Oak, $180,281.聽
Money lost by school districts by the measure would be at least partially made up by the state, according to a fiscal analysis of the bill by the Texas Legislature.
Since the measure will have to go to an election for approval by voters in the fall, it also means government entities will face uncertainties as they begin budget season and adopt a 2025-26 spending plan in the coming months.
