Thread by @HeatherSGolden

Texans, we have VERY high property taxes. Follow along here and you'll see why in this thread. #txlege #txed

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.

"Advocates say Chapter 313 guarantees high-paying jobs. But the pay at some tax-subsidized projects isn’t keeping pace with wages at other manufacturing businesses in the same region." So much for the requirement of high-paying jobs included in the law.

Boosters also say #Chapter313 lures businesses here, "but in case after case, the Chronicle found companies had announced projects and even started construction long before applying for Chapter 313 subsidies, suggesting they would have built the projects without the tax break."

Proponents argue that #Chapter313 is good for school districts. However, "the program’s beneficiaries are limited to the companies themselves and districts serving just 5 percent of Texas schoolchildren."

The tax breaks last for a decade. "These projects, at the height of their taxable value, were worth $22 billion. But in the first year after their tax breaks ended, they were worth just $9 billion — 41 percent of their peak values."

Companies often successfully fight their property values once the tax abatement is over, further lowering their taxable values. This reduces school district budgets after school boards have already given large corporations millions in tax breaks.

Keep in mind, these deals are only for large corporations, not small businesses. Small business owners are on the hook for the full amount of their taxes, just like homeowners.

#Chapter313 is too expensive for Texas taxpayers. Individual homeowners are subsidizing large corporations. Job creation has been lower than expected. Only 5% of schoolchildren live in districts that receive supplemental payments. It is time to let it expire. #txlege #txed