Round Rock Chamber Supports Renewal Of Chapter 313 Of The Tax Code

Press release from the Round Rock Chamber:

November 15th, 2020

As outlined in our Agenda for Economic Vitality, the Round Rock Chamber supports economic development tools that maintain and strengthen our city’s economic development competitive edge in business attraction, retention, and expansion. Tax abatements are one such tool.

Chapter 313 of the Tax Code allows school districts to attract new major industrial development projects by offering a temporary and limited tax discount against a portion of their school property tax bill; however, it is set to expire on December 31, 2022.

Almost every other state offers similar discounts, even though their property taxes are much, much lower than those in Texas. Texas property taxes on industrial projects are the third highest of any state. Chapter 313 must be renewed during the 2021 legislative session for Texas to remain competitive with other states.

High property taxes create a huge barrier to new investment, particularly capital-intensive investments like manufacturing plants. If Chapter 313 is allowed to expire, Texas will lose major projects and jobs to other states. The continuation of Chapter 313 is imperative for Texas to attract investment and stay competitive.

The chamber has signed on with our regional partners in support of renewing Chapter 313 in the next legislative session.

This press release was produced by the Round Rock Chamber. The views expressed are the author's own.