Discover and read the best of Twitter Threads about #chapter313
Most recents (12)
#txlege may debate #HB5 - the replacement for #Chapter313 corporate subsidies - this week. Would it be an improvement?
Spoiler alert: Nope
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Spoiler alert: Nope
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Renewable energy projects, which got construction incentives under #Chapter313, are cut out of #HB5. With the minor exception of providing energy to batteries to power the grid. #txlege
#Chapter313 covered only new construction.
#HB5 would give tax breaks to expansion of existing facilities, dramatically increasing the likely cost in forgone school property tax revenue that must be replaced with state funds. #txlege
#HB5 would give tax breaks to expansion of existing facilities, dramatically increasing the likely cost in forgone school property tax revenue that must be replaced with state funds. #txlege
@AustinISD is considering granting #Chapter313 tax breaks to @NXP for two new plants. Long thread follows. #txlege #txed 1/
The districts says this “would be considered a net benefit to Austin ISD, especially due to their 'Property Wealthy' status and their standing as the largest single-payer in the State's 'Recapture' system." bit.ly/3MDHuK9 #txlege #txed
AISD gets this wrong. 2/
AISD gets this wrong. 2/
Houston Chronicle editorial: Ordinary Texans are regularly expected to bear the burden of $billions in corporate welfare to some of America’s wealthiest companies under the false premise that we’re all benefiting somehow.
houstonchronicle.com/opinion/editor… #Chapter313 #txlege #txed 1/21
houstonchronicle.com/opinion/editor… #Chapter313 #txlege #txed 1/21
While the arrangement is sold as a way to lure new business to Texas and create well-paying jobs, a Chronicle investigation, Unfair Burden, revealed how #Chapter313, the state’s biggest tax incentive program is a wasteful boondoggle.
houstonchronicle.com/opinion/editor… #txlege #txed 2/21
houstonchronicle.com/opinion/editor… #txlege #txed 2/21
The #Chapter313 program, named for the section of the Texas Tax Code that enables it, lets companies keep a portion of their property values off of school district tax rolls for a decade. #txlege #txed 3/21
Texas’ Largest Corporate Welfare Program Is Leaving Companies Flush and School Districts Broke
#Chapter313 program offers steep discounts on property taxes to attract big industrial projects that are supposed to pay off over the long term.
texasobserver.org/texas-largest-… #txlege 1/9
#Chapter313 program offers steep discounts on property taxes to attract big industrial projects that are supposed to pay off over the long term.
texasobserver.org/texas-largest-… #txlege 1/9
But by the time these projects return to the tax rolls, much of that value has disappeared. #txlege created the #Chapter313 program 20 years ago in response to fears that high property taxes were preventing corporations from pursuing large-scale projects in Texas. #txed 2/9
That fear was later found to be untrue, but the #Chapter313 program has been wildly popular. As of 2019, there were 509 active deals that will deliver a total of $10.8 billion in tax breaks to corporations. #txlege #txed 3/9
The original sales pitch for the big #Chapter313 tax breaks?
It sprang from a typo!!!
Today #txlege has a chance to reverse that 20-year-old error.
houstonchronicle.com/news/investiga… #txed 1/12
It sprang from a typo!!!
Today #txlege has a chance to reverse that 20-year-old error.
houstonchronicle.com/news/investiga… #txed 1/12
#txlege created #Chapter313 in 2001 on the premise that TX needed to compete more aggressively for manufacturing jobs. High property taxes represented a barrier to industrial investment, bill author Rep. Kim Brimer and his allies said. #txed 2/12
Their solution: Create a program that temporarily caps property values and shelters billions of dollars in investments from being fully taxed by #txed school districts. It's now called #Chapter313. #txlege 3/12
The Texas Public Policy Foundation and Every Texan release a joint statement regarding extension of the #Chapter313 program of school property tax abatements. These tax breaks do not deliver the promised benefits, shift school funding costs, and waste tax dollars. #txlege 1/10
“Texas is fortunate to not need #Chapter313 incentives to persuade companies to locate here. Research and experience show that abatements are an unnecessary and wasteful perk and companies would have come to Texas regardless. #txlege #txed 2/10
But the #Chapter313 carve-outs do have a real impact on our ability to adequately fund all public schools and ultimately shift the responsibility for supporting them onto other businesses, homeowners, and renters. #txlege #txed 3/10
A #Chapter313 renewal would require major revisions: The contracts should be negotiated and governed by economic development experts. Mandate more independent auditing for compliance.... expressnews.com/opinion/commen… #txlege #txed 1/6
Only approve the select few #Chapter313 agreements that truly require the tax abatement to lure them to Texas. Eliminate job-creation waivers... #txlege #txed 2/6
All #Chapter313 money must be accounted for in school funding formulas to create the most level playing field for all schools across the state... #txlege #txed 3/6
Texans, we have VERY high property taxes. Follow along here and you'll see why in this thread. #txlege #txed
houstonchronicle.com/news/investiga…
houstonchronicle.com/news/investiga…
"Chapter 313...lets companies pretend that a portion of their property values are invisible on school district tax rolls for a decade. More than 500 manufacturing and energy projects are projected to save nearly $10.8 billion in property taxes over the duration of their deals"
"The spiraling costs of Chapter 313 — which soon are projected to top $1 billion per year — are just one example of how the program falls short of the benefits touted by supporters."
You read that right, these deals cost Texas taxpayers about $1 billion annually.
You read that right, these deals cost Texas taxpayers about $1 billion annually.
THREAD. "just as the tax breaks expired in 2018, Motiva suddenly announced that it was contesting the refinery’s appraised value of $3.5B, saying the structure & its contents were actually worth just $1.5B. Motiva sued..." #Chapter313 #txlege #txed texasobserver.org/texas-largest-…
"Thanks to a team of high-powered lawyers & seemingly endless supply of $ for legal fees, Motiva forced the outmatched appraisal district to settle, saving tens of millions of $ in property taxes in one fell swoop & leaving Port Arthur ISD in crisis" #Chapter313 #txlege #txed
"Port Arthur ISD serves 8,000 predominantly Black & Hispanic and low-income students...The Motiva refinery alone accounts for roughly half its tax base." #Chapter313 #txlege #txed
THREAD: "The spiraling costs of #Chapter313 — which soon are projected to top $1 billion per year — are just one example of how the program falls short of the benefits touted by supporters." #txlege #txed houstonchronicle.com/news/investiga… via @houstonchron
"The actual value of the property fluctuates over the limitation period. The school district, however, must treat the property now worth nearly $250M as if it is only worth $30M. By the time the cap is lifted in year 11, the property value diminishes." #Chapter313 #txlege #txed
"And in 64% of cases, local school boards let companies hire fewer workers than the law’s already modest minimum standards require." This figure dispels the notion that #Chapter313 is useful for creating high-quality jobs in TX. #txlege #txed
So all this I hear about #Chapter313 payments to school districts? Who wins and who loses? #txlege #txed 1/6
If a company just paid its fair share of school taxes then, because local property tax revenue would go up, state aid would go down (or recapture increase), and the district revenue per student would be unchanged. That’s the basic rule of school finance equity. #txlege #txed 2/6
But what if a firm gets a 313 tax break, then kicks back part of its tax savings to the district? The district’s property tax revenue is unchanged, since it’s not taxing the project, so state aid (and revenue per student) is unchanged, and the district pockets the payment. 3/6
Samsung renewables applied for a 10 year incentive for a solar farm through Texas #Chapter313 program. I love investments in renewable energy, but this program is terrible. (1/11)
First of all, this program largely incentivizes petrochemical investments in the state. So it isn't a renewable energy program. It money for energy. In Texas. One of the most energy rich states in the country. (2/11)
This solar facility will get millions in tax abatements for 1 job. One. They got the ok (a waiver) to only create 1 job. So the are fine to get their incentive. (3/11)
