Preserve Authority to Offer Limited, Temporary Property Tax Discounts
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 among the top five states in the nation with the highest industry property taxes; the fact that nearly all other states and countries offer similar economic development incentives only serves to underscore the importance of creating a program that can keep Texas competitive. As one Senator put it at a legislative committee hearing on tax incentives, “the 49 other states will love it when Texas abandons economic development.”
Manufacturing projects act as magnets to attract additional vendors and suppliers, service companies, and other businesses that follow the host project. This “ripple” or “multiplier” effect creates still more quality jobs and property tax wealth for many Texas communities. In fact, every direct manufacturing job Texas creates provides an average of five jobs in other industries (Source: National Association of Manufacturers/IMPLAN).