Learn about the Texas Economic
Development Act, which encourages the development of capital projects in school
districts under Chapter 313 of the Tax Code.
Companies may apply to school districts for property value limitations
to reduce school district M&O taxes as inducements for these projects. The reduction in local M&O taxes is
chiefly offset through state funding formulas or payments from companies, as
More than 400 Ch. 313 agreements
have been approved by school districts since 2002. The session will address the financial
benefits to school districts under this program, as well as the procedural
issues in approving a Ch. 313 agreement.
Changes under HB 3 have also affected the program.
The Ch. 313 program will be
up for legislative renewal in 2021 for new projects. The policy issues surrounding the renewal of
the program will be discussed as part of the presentation.