As member of the Texas Association of Business’s Texas 2050 Group, the San Antonio Chamber has partnered with various business organizations throughout the state to develop the Texas 2050 plan, a framework for long-term economic growth. The Texas 2050 Group advocates for state and local incentive programs needed to secure job creation and business capital investment in Texas.
Last week, the Texas 2050 Group hosted a Chapter 313 Education Forum for state legislators and staff at the State Capitol. Dale Craymer, President of the Texas Taxpayers and Research Association (TTARA) led the forum with a general overview of Chapter 313. Craymer also explained how the program could be in jeopardy this legislative session.
Chapter 313 of the Tax Code allows school districts to offer a temporary limitation on the taxable value of new investment projects. It has been the focus of both praise as an economic tool and criticism for its possible impact on state finances. Business taxes and ad-valorem property taxes remain high compared to other states. In Texas, companies pay roughly 60 percent of all taxes versus an average of 40 percent in other states. Through 2015, the State Comptroller reports that 311 projects have participated in the program, creating 12,321 operations jobs and an unreported number of construction and contact jobs. These jobs have added $12.1 billion in school maintenance and operation tax rolls and $31.7 billion in school debt tax rolls. Overall, the Comptroller estimates the program has brought over $80 billion in new investment to the state, creating 50,300 jobs and adding $2 billion in personal income.
Those in attendance heard first-hand how Chapter 313 affected business investment decisions for industries who have recently located to Texas. The Texas 2050 Group hosted an industry panel with Tony Bennett, President of the Texas Association of Manufacturers; Catherine Morse, General Counsel and Senior Director of Public Affairs for Samsung Austin Semiconductor; and Michael Jacobson, President of the Arlington Chamber of Commerce.
The Chamber will continue to monitor bills filed in the Texas Legislature that may impact the state’s economic growth, and will continue advocacy efforts to support economic development tools and incentives. You can learn more about the 2050 Plan by downloading the one pager.