Texas
Companies say they’re being denied Texas tax breaks as a state agency is overwhelmed with applications
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Days earlier than the expiration of a state program that gives billions of {dollars} in property tax breaks to companies shifting to Texas, two firms have gone to court docket arguing they’re being frozen out from the last-minute financial savings attributable to an overwhelmed state company.
The 2 renewable vitality firms say the Texas comptroller’s workplace, which critiques the purposes to the company relocation or growth incentive program, has denied their requests for greater than $20 million in tax financial savings as a result of the company can’t deal with the variety of entities searching for approval for tax incentives earlier than the Dec. 31 deadline.
In 2021, the Legislature opted to let this system, often known as Chapter 313, die after complaints that it amounted to “company welfare.” However firms authorised for the financial savings in 2022 can nonetheless obtain them for 10 years, and tons of of firms searching for to beat the deadline have flooded the comptroller’s workplace with requests for the tax breaks.
Stetson Renewables Holdings LLC and Ogallala Renewable Venture LLC submitted their purposes in Could 2022. In a request to the Texas Supreme Courtroom filed Tuesday, their attorneys mentioned Comptroller Glenn Hegar knowledgeable them that the Chapter 313 purposes have been acquired earlier than the deadline they usually have been eligible for incentives.
However after eligibility is decided, the comptroller’s workplace is required to conduct an financial affect analysis on the appliance inside 90 days, the businesses say. The attorneys asserted that Hegar failed to finish the evaluation in time, which resulted within the purposes’ denial.
“Thus, regardless of having an obligation that the Comptroller ‘should’ take motion inside 90 days, the Comptroller has used the expiration of that 90 day interval as the rationale for not offering the financial affect analysis in any respect and for not issuing a certificates,” the attorneys say of their submitting.
In a press release Tuesday, Hegar mentioned his workplace has seen an “extraordinary variety of purposes from firms searching for to safe an incentive underneath the present program.”
He famous his workers needed to handle a workload that has considerably elevated previously six months, regardless of no further staffing help from the Legislature.
The businesses filed Chapter 313 purposes for wind and photo voltaic vitality tasks positioned in 5 totally different unbiased faculty districts throughout Texas: Bynum ISD, Hart ISD, Holliday ISD, Miller Grove ISD and Sulphur Springs ISD. They have been knowledgeable of their denials final week. They declare within the submitting that their purposes have been rejected, despite the fact that some firms — together with the electrical automotive firm Tesla, owned by Elon Musk — utilized for the financial savings after them and have been nonetheless authorised. Tesla utilized for the tax break to construct a plant that produces battery-grade lithium hydroxide.
“The Comptroller’s failure to carry out his statutory obligations and challenge Certificates is jeopardizing roughly $773,550,000 in proposed capital investments in Texas, $27,001,784 in projected incentives, and projected minimal tax and different funds of $29,676,6001 to the college districts,” the submitting says.
Based on the businesses’ purposes filed with the college districts named within the letter, the 5 tasks would end result within the creation of six full-time positions. The businesses requested a waiver of the job creation requirement in every of their purposes.
Beneath the Chapter 313 program, manufacturing and vitality firms apply to native faculty districts for a 10-year low cost on their property tax payments in change for constructing or increasing locally and, in quite a few circumstances, creating new jobs. The Texas comptroller’s workplace should additionally approve these agreements.
There’s no draw back for varsity districts to approve the tax breaks, as a result of any foregone income for public colleges is made up for by the state. That shift of state {dollars}, critics say, leaves much less cash on the desk for different state companies, similar to well being care or public security.
Faculties may signal agreements straight with the businesses for a supplemental cost in change for approving the tax break, which fosters inequity in funding amongst faculty districts, critics say.
“It’s shameful to take cash from schoolchildren to line the pockets of those rich firms,” mentioned Bishop John Ogletree of The Metropolitan Group in Houston, in a press release Tuesday opposing a unique firm’s Chapter 313 utility to Gregory-Portland ISD.
Hegar mentioned his workplace will certify greater than 300 tasks this yr. He criticized the businesses’ request of the state’s Supreme Courtroom with roughly two weeks left within the yr.
“Regardless of receiving billions of {dollars} in property tax abatements over the lifetime of this system and probably billions extra in authorised incentives simply this yr, these firms and their attorneys are asking Texas taxpayers to shoulder much more regardless of the Legislature’s choice to discontinue this system,” Hegar mentioned in a press release.
Jolie McCullough contributed to this story.
Texas
Texas basketball: Longhorns open final stretch of non-conference play with a blowout win
Texas women’s basketball nonconference schedule
Texas women’s basketball nonconference schedule
Back at Moody Center for just the second time this month, No. 6 Texas crushed La Salle in a non-conference game on Tuesday night.
Senior forward Taylor Jones recorded her third double-double performance of the season, and Kyla Oldacre and Justice Carlton respectively scored 18 and 17 points in a 111-49 victory. With two games left until its Southeastern Conference opener, Texas is now 11-1.
The Longhorns will next host South Dakota State (10-2) on Sunday afternoon.
“We’ve got a monster on Sunday. South Dakota State is really good and well-coached. They’re always an NCAA tournament team. They win their league every year. So we’ve got to sharpen up a little bit and be ready on Sunday,” Texas coach Vic Schaefer said. “My concern on Sunday is that my kids are going to have one foot out the door ready for Christmas break, and sometimes you can do that against the three-name directional school. You (can’t) get away with that on Sunday.”
The 62-point win was the second-most lopsided victory of UT’s season, but the game was competitive in the first quarter. La Salle (6-6) even led twice before the first media timeout was called.
During that first quarter, Texas leaned on the depth it has often boasted about but not always used this season. Eleven Longhorns played in the first quarter, and Schaefer made his first substitutions less than three minutes into the game.
Reserve guard Jordana Codio, who had not played in a first half this season, gave UT a lead it wouldn’t relinquish when she sank a 3-pointer with 5:38 left in the frame. A junior, Codio finished with seven points over a career-high 17 minutes.
“That was the game plan,” Schaefer said. “Jordana’s had four really good days, she’s earned it. … She’s doing what Shay had to do her first few years. She’s over there on the men’s practice team, and she dominated our team. So she deserved the opportunity. She came in and did exactly what we needed, which was give us some juice.”
Texas exited the first half with a 19-12 advantage and then outscored La Salle by a 38-9 margin in the second quarter. The Longhorns’ lead swelled to as many as 67 points in the second half.
While playing just 14 minutes, Jones scored 13 points and grabbed 11 rebounds against the undersized Explorers. Jones and fellow post players Oldacre and Carlton led Texas to a 70-14 advantage in paint points. The Longhorns also got a combined 21 points and 11 assists from point guards Rori Harmon and Bryanna Preston while All-American forward Madison Booker had 10 points and six rebounds.
Aryss Macktoon and Ivy Fox each scored seven points to lead La Salle.
Before Tuesday’s game, members of the UT basketball team received rings to celebrate the championship they won at last season’s Big 12 tournament. Nine players remain from that team.
Texas
Texas electors cast ballots for Trump, Vance on Tuesday
Members of the Texas Electoral College met at the state capitol building in Austin on Tuesday to cast their 40 electoral votes for president.
The office of Texas Secretary of State Jane Nelson reported all 40 electoral votes were cast for President-elect Donald J. Trump and Vice President JD Vance.
The vote, the secretary’s office said, reflects “the will of the Texas voters in the 2024 General Election.”
Nelson presided over the proceedings in the Texas House Chamber. In an address to the electors, Nelson emphasized the historical significance of their duty.
“Today, you join a distinguished line of Texans who have served as electors—a role vital to the strength of our democracy,” Nelson said. “This event marks the culmination of months of effort to ensure free, fair, and secure elections.”
The event was broadcast live through Texas House media and can be watched here.
Texas
Newly filed bill could make recreational marijuana legal in Texas — with these limitations
Americans vote on abortion, immigration, marijuana and voting rights
Abortion, immigration, marijuana and voting rights are key issues on ballots across the United States.
Texas may join several states in legalizing recreational marijuana if a bill is passed in the next legislative session.
If passed, the bill would let adults ages 21 and older possess, use and transport marijuana for personal use, up to 2.5 ounces. Up to ten ounces of marijuana could be possessed legally if stored in a secure location.
It would also require cannabis products to be clearly labeled and have child-resistant packaging, WFAA reports.
State Rep. Jessica Gonzalez (D-Dallas) filed the bill in November, to be considered during the next legislative session. The next session runs from Jan. 5 to June 2, 2025. If the bill passes, it will go into effect Sept. 1, 2025.
The bill would have limitations. Smoking marijuana in public would remain illegal, as would smoking in a vehicle on a public road.
Texas would join 24 other states in legalizing recreational marijuana. The Lone Star State established a medical marijuana program through the Compassionate Use Program in 2015 and is among the 38 states that allow it for medical use.
However, it’s unlikely that the new bill will be passed as Texas officials continue to tighten regulations on marijuana issues statewide.
Recreational marijuana bill filed after Texas AG files lawsuit against Dallas
Around the time Rep. Gonzalez filed the bill, Texas Attorney General Ken Paxton added Dallas to the list of cities he is suing for the decriminalization of cannabis. The lawsuit came shortly after 67% of Dallas voters approved Proposition R, also known as the “Dallas Freedom Act.” The law amends the city’s charter and prevents police from arresting or citing individuals for possessing up to 4 ounces of cannabis, except in cases involving felony investigations tied to violence or narcotics.
The measure also prohibits officers from using the smell of cannabis as probable cause for searches or seizures and restricts city funds and resources from being used to test cannabis-related substances to determine whether they meet the legal definition of cannabis.
Before the vote, Dallas had been one of the largest U.S. cities that had not decriminalized cannabis possession.
Texas Lt. Gov. moves to ban sale of all THC products
Just weeks ago, Lt. Gov. Dan Patrick launched an effort to pass Senate Bill 3, which would ban all forms of consumable tetrahydrocannabinol (THC) from being sold, according to a news release from his office. As president of the Senate, Patrick has a strong influence over which legislation is heard. The bill’s low number suggests it will be among the first to be debated in the next legislative session.
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