Our On January 21 – 22, TCMA members took
the I-35 challenge to convene in Austin, and the Interstate didn’t fail
to live up to its reputation! With the legislature in session, the
frenzy had begun with committee assignments being overseen by the new
Speaker of the Texas House of Representatives, Dennis Bonnen.
Meanwhile, our members came together to discuss issues facing
manufacturing, especially our metal casting industry. This trek to
Austin follows our mission statement, “To promote the common interest of
the metal casting industry through the development of an effective
legislative action program and improve communications with elected
officials.”
Major legislation of interest to the
Texas Cast Metals Association:
House Bill 3 &
Senate Bill 2: the single most pressing issue I hear
about from my Denton County residents is the crushing property tax burden
– both commercial and residential. It’s no secret that Texans
pay some of the highest property taxes in the nation.
While homesteads receive a 10%
appraisal cap, businesses enjoy no such exemption – making the
property tax load even heavier to carry. By increasing the state
share of education spending from 38% to 45%, House Bill 3
provides $5 billion in property tax relief. School district M&O
rates will be lowered by an average of 8 cents statewide in
2020, and 13 cents in 2021
This will lead to
meaningful, noticeable, actual property tax relief for homes and
businesses. Senate Bill 2, though not forcing lower property
taxes now, will help citizens ratchet down rates in the long
run. The measure forces cities and
counties to hold an automatic ratification election if they
adopt a tax rate raising 3.5% more revenue than in the previous
year.
SB 2 also introduces a significant
amount of transparency into the property tax system, creating
new notices which will allow taxpayers to understand when a
city, county, or school district is actually raising taxes.
The current system can confuse and mislead –
with rising property values, keeping rates the same or even lowering
them can still lead to a net tax increase. SB 2 will help combat that
ruse, and empower voters to take control of the tax rate adoption
process.
SB 698: I’m also acutely aware of the frustrations some industrial
businesses experience obtaining permits through the Texas Commission on
Environmental Quality. Wait times for review and processing have been
lengthy. Currently, TCEQ can assess a surcharge for expedited permitting
if an individual is willing to pay for it. SB 698 allows that surcharge
to be used to hire full-time employees for processing, instead of just
overtime and contract employees. This should make it easier for TCEQ to
do their jobs timely and accurately.
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