TAM Top 10
With Texas’ most powerful economic development tool expiring on December 31, 2022, the Texas Legislature MUST create a program to allow school districts to offer limited, temporary property tax discounts for purposes of economic development. The post-pandemic restructuring of the global supply chain has given Texas communities a chance to bid for new capital-intensive industrial projects that bolster our national and economic security, supply chain stability, and energy independence. Competition for these projects is fierce. Although we enjoy many advantages for new investment, Texas is...more
The Texas Legislature reformed the franchise tax over a decade ago to better reflect the modern sectors of the Texas economy, close tax loopholes, and to help finance a reduction in the school property tax. Legislative sentiment periodically favors a phase-out or repeal of the franchise tax. TAM opposes exempting favored businesses from the tax, leaving others to shoulder the burden. Moreover, TAM points out that because the franchise tax is low, broad, and is not imposed on employment or investment, reducing, or eliminating the tax is not likely to produce significant economic gains to...more
Some states have completely exempted business personal property from their property tax assessments to grow their economies; Texas is not one of them. Business personal property includes assets that can be moved – furniture, equipment, and inventories. Inventory includes raw materials, finished goods, and supplies or parts that manufacturers need to run their business. Most states have at least done away with taxing inventory – with all but seven, including Texas, still levying a tax on most business inventories.
The taxation of Texas business personal property and inventory...more
Manufacturing plants are energy intensive operations and require well-orchestrated logistics to receive raw materials and supplies and then ship finished products to customers worldwide. These activities require an ever-expanding network of transportation infrastructure, including pipelines, utility rights-of-way, highway, and rail corridors, etc. that are the vital arteries necessary in sustaining these operations.
TAM supports policies that will facilitate the flow of both interstate and intrastate commerce and alleviate recent supply chain disruptions. Accordingly, delays in any...more
Following Winter Storm Uri, incumbent generators have increasingly sought government-mandated, fixed payments from customers to compensate them for simply owning existing generation facilities. These proposals have caused substantial cost increases in electricity while failing to improve reliability across the country. Under Senate Bill 7, which deregulated the ERCOT market, a key goal was to move away from a regulated model where captive ratepayers fund generation development directly, and to shift the financial risk of generation investments from customers to private investors....more
Electricity is a top three production cost for most manufacturers. Regulated monopoly utilities continuously ask for “rate riders” that let them increase rates quickly, with very limited review. These rate riders can disadvantage utility customers because they don’t provide a full picture of what a utility is earning before allowing another rate increase. In particular, riders tend to account only for increases in costs, while failing to account for offsetting cost reductions or increased revenues since the utility’s last full rate case. This can cause utilities to over-earn, forcing Texas...more
TAM supports flexible yet rigorous pathways in K-12 public schools and higher education, recognizing there are many pathways to success. Texas’ education system must be aligned to prepare students to meet the diverse and evolving needs of employers. TAM supports strong career and technical education (CTE) in all Texas school districts, not only because CTE students graduate high school at higher rates, but because these programs play an integral role in introducing both careers and industries to students who might not be exposed to them otherwise. TAM supports a strong system of career,...more
TAM supports the Texas Commission on Environmental Quality’s (TCEQ) continued operation following its 2023 Sunset Advisory Commission review. TAM also supports the diligent work by both TCEQ and the Sunset Advisory Commission and is generally supportive of needed improvements that will help ensure the protection of public health and our environment. We encourage the Legislature to let TCEQ continue to work on enhancing the availability of information to the public and the regulated community.
TAM supports the use of clear and consistent regulations that have a market driven and...more
A healthy workforce results in a more productive workforce. Our global economy can be impacted quickly due to widespread illness, resulting in slowed manufacturing, the inability to get goods to consumers, job losses, and lost tax revenue. Every year thousands of productive hours are lost due to sick time for students, employees, and families. TAM supports efforts to prevent infectious disease in the workplace and schools. In the words of Benjamin Franklin: “an ounce of prevention is worth a pound of cure.” TAM supports the assurance of a healthy and productive workforce by eliminating...more
TAM supports a competitive tax climate that will incentivize investment by new and existing businesses. Sometimes, the State of Texas must adjust how taxes are applied in order get the attention of capital-intensive projects. Simply said, strategically limiting tax liability on certain investments may generate a net gain in local and state revenue. Encouraging growth of an industry by making the tax structure more competitive vis-à-vis neighboring states and countries can produce a net win for Texas governments and industries.
TAM supports a competitive Research & Development...more