Thread by @dlavine

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

Even the expectation to create the paltry required number of jobs is often waived. It’s time to call these #Chapter313 tax breaks what they are: handouts to favored industries and to the few school districts that use them to incentivize companies to locate there. #txlege 4/10

Texans shouldn’t be on the hook for these sweetheart arrangements, and we certainly shouldn’t maintain them at the expense of our schools. Texas ought not to extend #Chapter313.” #txed #txlege 5/10

Chapter 313 is not necessary.

#Chapter 313 is not necessary. A 2017 study of Chapter 313 agreements estimated that between 85% and 95% of the Chapter 313 projects studied would have located in Texas without the incentive. #txlege #txed 6/10

Tax revenues that would have funded education are diverted away. #Chapter313 allows school districts and businesses applying for a tax break to negotiate “supplemental payments” that are not integrated into the funding mechanism supporting TX public schools. #txlege #txed 7/10

Supplemental payments show that #Chapter313 tax breaks are too high to start with, if necessary at all.#txed #txlege 8/10

Businesses applying for a #Chapter313 tax break sometimes pay more than 40% of their tax savings back to the school district in supplemental payments, showing that, at the very least, they do not need such large tax breaks, if they need any. #txlege #txed 9/10

School districts can waive – and often do – the #Chapter313 job creation requirement for an applicant, which can be as few as 10 jobs in rural areas. #txlege #txed 10/10