The Texas House recently passed legislation that would renew tax deals under Chapters 312 and 313 of the Tax Code without any reform. In the statute’s current form, negotiations of these special deals are hidden from public view, leaving residents without adequate opportunity for public input and costing them billions.
Tell your legislators we need transparency in the Chapter 312 process!
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Here’s what you should know:
- Residents should have 90 days to review and comment on tax deals. Currently, local governments are only required to notify the public 72 hours before a hearing on Chapter 312 tax breaks—even though they often negotiate for months in secret before a public meeting.
- The public should know in advance how much tax revenue will be lost through an abatement. This cost of the tax break and the actual abatement agreement should be provided to the public before the hearing.
- Economic development should benefit local communities by bringing jobs. The state should require a minimum of jobs be created before a local government can offer tax breaks to a business.