Legislative Blog

J.B. Williams, J.D.

6 more bills that modify the Tax Code

A Blog about 88th Legislature Laws

A Bit of Background

The following backgrounds help summarize the author's views on both the general topic: Texas and more specifically 88th Legislature Laws as it relates to that topic.

Brief Summary of Texas

Texas is truly a Republic. There are a multitude of items that to modify the state constitution must be modified. So there are times when Constitutional amendments are on the voting ballots. While I sometimes abhor the wording, the concept that all of those legally able to vote in Texas must vote on the change is a good one. And bills in Texas are generally short, making it easier for everyone to understand.

Summary of 88th Legislature Laws

The blogs here will discuss the laws passed by Congress and signed into law, as well as those, passed by Congress and approved by the voters to become law. There are a multitude of laws and each time I post blogs I will notate here the current effective date if it is different from prior blogs. I am currently posting bills that took effect immediately - those bills total 336. I am currently posting regarding larger bills, so each blog covers a single bill.

Blog Summary

SB 1191 - Late applications can still be reviewed if filed by or on behalf of surviving spouses/children or the estate of decedent.

SB 1243 - Grant funds received to expand broadband are not included as revenue but expenses covered by grant funds may be included as expenses.

SB 1420 - Much like 2 prior bills, it updates definitions and sets out required spending for certain percentages of hotel occupancy taxes.

SB 1525 - Added current or former attorney for the Department of Family and Protective Services to those with protected home address.

SB 1809 - Enables small counties, under 3,000, that meet other specification to impose a hotel occupancy tax.

SB 2350 - Modifies the definition for a voter approved tax rate.

6 more bills that modify the Tax Code

Published: 2024-07-19

SB 1191

Late applications for the appraisal of land for ad valorem tax purposes as qualified open-space land following the death of the owner

The chief appraiser shall accept and approve or deny an application filed after the deadline if:

1. the land was appraised in the preceding tax year;
2. the ownership changed as a result of the death of an owner during the preceding tax year; and
3. the application was filed not later than the delinquency date for taxes on the land and is filed by:
   1. the surviving spouse or surviving child of the decedent;
   2. the executor or administrator of the estate of decedent;
   3. a fiduciary acting on behalf of the surviving spouse or surviving child of decedent

A 10% penalty is to be paid by the owner unless the land was appraised in the preceding tax year.

SB 1243

Franchise tax treatment of certain broadband grants

Grants for qualifying broadband deployment can be received in the following manners:

1. under the Broadband Equity, Access, and Deployment Program - 47 USC Section 1702 (a federal government waste program);
2. under State Digital Equity Capacity Grant Program established by 47 USC Section 1723 (a federal government system to waste taxpayer money through state programs);
3. under the Digital Equity Competitive Grant Program in 47 USC Section 1741 (yep another federal government program to waste taxpayer money);
4. under 47 USC Section 1741 for middle mile grants (no need to repeat myself);
5. under broadband loan and grant program in Title VII, Section 779 for fund for 'Distance learning, telemedicine, and broadband program', 'Rural utilities service', 'Rural development programs', Infrastructure Investment and Jobs Appropriations Act (yet more federal government waste);
6. Section 905, Division N, Consolidated Appropriations Act, 2021 (more federal waste);
7. from state, territory, tribal government, or local government for grants that were funded by 42 US Sections 802, 803, or 804; and for making investments in broadband infrastructure (wow more federal government waste);

Let me be clear, I understand the desire for everyone to have broadband internet access. However, when the federal government was involved with forcing phone service to rural areas; telephone costs were very high and things were moving forward at a snails pace. When things were broken down to allow more companies entry into the system and expansion, phone costs started dropped and service starting more rapidly improving. Do I think that some areas might need incentivizing - maybe, but that's a big maybe. With all this government spending (and it's been extremely wasteful in the $ being thrown at problems that could, and probably would, have been solved for a lot less), there are immense areas of rural that do not have the same internet experience as other areas. But some areas have found other means for improving their internet access without the need for taxpayer funds. And these were via companies approaching people in rural areas that were willing to provide internet access through means that did not require the laying of lines. In those areas, the choices were limited; but with all the government spending the choice was the 1 provider the government paid to do the expansion. Other providers did not even attempt to enter the market there because only 1 entity is being taxpayer funded to do so. So no government money, limited choices; government money, 1 choice and 1 choice only.

A provider receiving government grants is to exclude these grants from its revenue. They may include the cost of goods sold as an expense, even if it is paid for my a grant. And it may include as compensation any expense paid by the grant.

SB 1420

Municipal and county hotel occupancy taxes

Again this is updating some definitions in the code. Included adding to the meetings definition such that attendance by tourists and those spending the night at a hotel are included. And tourist expanded to include those here for business.

The date for the annual report to the comptroller shifts to March 1 of each year. And for a municipality with a population under 10,000, it may keep $1,000 for the cost of making the report. For a population of 10,000 or more, they may keep $2,500 for the cost of making the report.

Much like HB 2737, this bill address the visitor centers, transportation used primarily by tourists. Valid uses for hotel occupancy tax.

A municipality with a population of less than 200,000, includes an amount of hotel occupancy ax revenue collected that is not less than 1% of the cost of a room. A municipality with a population that exceeds 1.6 million shall allocate at least 23% of the hotel occupancy tax revenue collected. If a municipality previously passed and adopted different amounts, specifically exceeding 15%, they may continue to allocate for the specific purposes so previously allocated until the ordinance is repealed or expires. Just a way to force some percentage to be used specifically for tourist purposes, rather than permitting the municipality more freedom to determine the best way to use those funds.

Much like HB 3727 and SB 627, there is a recapture of lost state tax revenue section.

On the 20th anniversary of the date the qualified hotel opened, the comptroller shall determine the following:

1. total amount of state tax revenue received, and if additional entitlements; and
2. total amount of state tax revenue received by the state during the period beginning on the 10th anniversary the hotel opened and ending on the 20 anniversary.

If 1 above exceeds 2, then the comptroller shall promptly provide written notice stating that the municipality must remit the difference. The municipality shall remit monthly payments until the amount is paid in full. The first payment must not be made later than the 30th day after notice is received. Subsequent payments are due on the 20th day of each month.

SB 1525

Confidentiality of certain home address information in property tax appraisal records

It is much like HB 1911 and SB 617

This section applies to the following (those underlined are newly added):

1. current or former peace officer, and the spouse or surviving spouse;
2. the adult child of a current peace officer;
3. current or honorably retired county jailer;
4. employee of the Texas Department of Criminal Justice;
5. a commissioner security officer;
6. a individual that shows they, the individual child, or a person in their household is a victim of family violence by providing
   1. a copy of a protective order issued under the Family Code or a magistrate's order for emergency protection under the code of Criminal Procedure;
   2. other independent documentary evidence to show they are the victim of family violence;
7. an individual that shows they, their child, or a person in their household is a victim of sexual assault or abuse, stalking, or trafficking of persons by providing
   1. a protective order under the Code of Criminal Procedure;
   2. other independent documentary evidence necessary to show the above;
8. a participant in the address confidentiality program administered by the attorney general;
9. a federal judge, federal bankruptcy judge, a marshal of the US Marshals service, a state judge, or a family member of one of them;
10. a current or former district attorney, criminal district attorney, or county or municipal attorney whose jurisdiction includes criminal law or child protective services;
11. a current or former employee of a district attorney, criminal district attorney, or county or municipal attorney whose jurisdiction includes any criminal law or child protective services;
12. an officer or employee of a community supervision and corrections department;
13. a criminal investigator of the US;
14. a current or honorably retired police officer or inspector of the US Federal Protective Services;
15. a current or former US attorney, assistant US attorney, federal public defender and the spouse and child of the attorney or public defender;
16. a current or former employee of the office of the attorney general who is or was assigned to a division involved in law enforcement;
17. a medical examiner or person who performs forensic analysis or testing for Texas or one or more political subdivisions of Texas;
18. a current or former member of the US armed forces who has served in an area the US President has designated as engage in combat;
19. a current or former employee of the Texas Juvenile Justice Department or the predecessors in function;
20. a current or form juvenile probation or supervision officer certified by the Texas Juvenile Justice Department, or the predecessors in function;
21. a current or former employee of a juvenile justice program or facility;
22. a current or former employee of the Texas Civil Commitment Office or the predecessor in function;
23. a current or former employee of a federal judge or state judge;
24. a current or former child protective services caseworker, adult protective service caseworker, or investigator for the Department of Family and Protective Services, or a current or former employee of a department contractor performing child protective services caseworker, adult protective services caseworker, or investigator functions on the contractors behalf;
25. an elected public officer;
26. a firefighter or volunteer firefighter or emergency medical services personnel; and
27. a current or former attorney for the Department of Family and Protective Services

SB 1809

Authority of certain counties to impose a hotel occupancy tax

A county with a population under 3,000, does not border another state, and is adjacent to a county that contains a portion of Lake Meredith and has a population of more than 110,000 - the commissioners court of those counties may impose a hotel occupancy tax.

The tax may not exceed 7% of the price of a hotel room. There is an except where the rate may not exceed 2% of the price of a hotel room if the hotel is:

1. in a municipality that imposes a tax under Chapter 351 or;
2. the extraterritorial jurisdiction of a municipality that imposes the tax under 351.0025

SB 2350

Voter-approval tax rate used to calculate the unused increment rate of a taxing unit for ad valorem tax purposes

A voter approved tax rate is the rate voter's approved in the preceding tax year less than the unused increment rate for the preceding tax year.

 

J.B. Williams, J.D.

4,312 federal laws were passed from 1995 through December 2016.
Along with 88,819 federal rules and regulations.