88TH TEXAS LEGISLATIVE SESSION PRIORITIES
Adopted on January 26, 2023
Preservation Austin exists to empower Austinites to shape a more inclusive, resilient, and meaningful community culture through preservation. The following are our organization’s advocacy priorities for the 2023 Texas Legislature’s Regular Session. Additional priorities may be added in the months ahead as other issues are identified. Preservation Austin is committed to working with preservation partners here at home, and statewide, to monitor, support, or oppose legislation that impacts historic preservation in Texas.
SUPPORT
Texas Historical Commission Budget and Programs
Preservation Austin supports adequate funding for the Texas Historical Commission to fully fulfill its mission of preserving Texas’ heritage and history.
Funding $45 million for the Historic Courthouse Grant program
Funding for deferred maintenance of the Capitol Complex
Increasing agency FTEs including:
1 position for General Counsel. The THC is the largest state agency without in-house counsel.
1 position for the agency’s historic cemetery preservation program, with attention to be given to cemeteries associated with African American freedom colonies and enslaved Texans
Funding to replace aging computers for staff
Funding for ongoing maintenance of historic sites including the Carrington-Covert House, Christianson Leberman, and El Rose buildings in Austin that house several of the THC’s key programs and services
Background:
The Texas Historical Commission (THC) was created in 1953 as the Texas State Historical Survey Committee to identify important historic sites across Texas. In 1973 Texas Legislature changed its name to the Texas Historical Commission and expanded the Commission’s responsibility to include more protective powers, an expanded leadership role, and a greater role in education.
The THC has operated 32 state historic sites, provided educational resources, and assisted with preservation projects across Texas. The agency’s work includes the Heritage Trails program; support for Certified Local Governments and County Historical Commissions; the Texas Main Street program; the Courthouse Grant and Preservation Trust Fund grant programs; archeology, cemetery, and museums programs; and the State Historic Tax Credit program. The THC also serves as the State Historic Preservation Office with Federal regulatory obligations that require adequate funding to fulfill.
PROTECT
Texas Historic Preservation Tax Credit Program
Preservation Austin supports a strong state historic tax program for both for-profit and nonprofit-owned properties, to incentivize rehabilitation of historic buildings and create jobs across Texas. We support the THC’s legislative initiative to ensure the long-term survival of the historic tax credit by moving these provisions our of Tax Code Chapter 171, Franchise Tax, and into a separate section of tax code.
Background:
The Texas Historic Preservation Tax Credit Program, managed by the THC, was created through the passage of Texas House Bill 500, which went into effect on January 1, 2015. The program provides a credit for state franchise or insurance premium taxes equal to 25 percent of qualified expenses spent to rehabilitate buildings listed in the National Register of Historic Places, and that are Recorded Texas Historic Landmarks or Texas State Antiquities Landmarks. It applies to buildings that are income-producing or are owned by a nonprofit. Owner-occupied residential properties and publicly owned buildings are not eligible. This state tax credit can often be used in conjunction with the Federal Historic Preservation Tax Incentive Program.
Since 2015, 350 projects have been completed using the state tax credit, resulting in investments of over $4.2 billion in historic buildings across our state. These investments increase property values, create high-paying local jobs and bring communities closer together. The THC estimates certified projects supported over 89,000 jobs in Texas, with $5.7 billion in wages and income. About $99 million has been generated in state taxes and $326 million in local taxes, not accounting for subsequent property tax increases. Over $7.3 billion has been added to the state’s gross domestic product. Projects underway represent additional ongoing growth to our economy
Preservation Austin is utilizing the program to rehabilitate the Streamline Moderne house at 3805 Red River Street, which we will use as our own office starting in 2023.
SUPPORT
Texas Commission on the Arts’ Cultural Districts Program
Preservation Austin supports funding for the Texas Commission on the Arts to fulfill its mission to support the arts and local communities, including an increase of $5 million for the Cultural District grant program.
Background:
The Texas Commission on the Arts (TCA) was originally created in 1965 as a temporary agency to develop a receptive climate for the arts in Texas, attract artists to the state, advise state agencies in arts-related matters, and ensure all Texans have access to the arts. In 1971 the agency became permanent.
During the 79th legislative session in 2005 the Texas Legislature authorized the TCA to designate cultural districts in Texas. Cultural districts are specific zones that recognize the special cultural resources in a certain area and their ability to play a role in economic and community revitalization. These districts are used for many purposes including attracting tourists, encouraging business, addressing community needs, preserving historic buildings, and fostering local development.
Austin is home to two cultural districts. Six Square: Austin’s Black Cultural District is notable as a center of African American heritage in East Austin, and downtown’s Red River Cultural District which is known for its music, art, and entertainment venues.
PROTECT
Municipal Hotel Occupancy Tax funds for Historic Preservation and the Arts
Preservation Austin supports the continuation of the 15% of Municipal Hotel Occupancy Tax (MHOT) funds to support the arts and historic preservation efforts in Texas. This includes opposing legislation expanding the eligible uses of the MHOT that includes general infrastructure items.
Background:
In 1965 the Municipal Hotel Occupancy Tax was created to levy a tax on the state and municipal level on people renting a hotel or guest room in Texas. The purpose of the MHOT is to promote tourism, hotels, and convention centers. The Legislature has since amended the tax code to allow “up to 15%” of MHOT funds to be used for “historical restoration and preservation projects or activities to encourage tourists and convention delegates to visit preserved historic sites or museums.” It also allows the same amount to be dedicated to “the encouragement, promotion, improvement, and application of the arts.” Allowing municipalities to use these funds for historic preservation and the arts is essential to promoting tourism across Texas.
The City of Austin’s Heritage Tourism Division utilizes 15% of MHOT funds to facilitate the execution of a forthcoming Citywide Cultural and Heritage Tourism Plan, and to administer the Historical Preservation Fund, including the Heritage Grant Program, to support thriving establishments that host long-term and short-term visitors and helps build capacity of heritage tourism sites.
SUPPORT
Texas Parks and Wildlife Department Budget and Programs
Preservation Austin supports consistent funding for the Texas Parks and Wildlife Department, including full dedication of its portion of the sporting goods sales tax to continue its vital work and preservation efforts. TPWD maintains hundreds of buildings over 50 years old and thousands of archeological sites. Several state parks are listed as National Historic Landmarks, or listed in the National Register of Historic Places. Continued funding for maintenance of these properties is vital to the experience of the visitor and the local economies surrounding our state parks.
Background:
The Texas Parks and Wildlife Department (TPWD) has existed in its current form since 1963. Its mission is to conserve Texas' natural resources through park management and to provide outdoor recreational activities for people across the state.
In November 2019 Texas voters approved Proposition 5 which allows TPWD to receive 93% of proceeds from the Sporting Goods Sales Tax, a tax that has existed on certain sporting goods for many years. TPWD uses these proceeds to create new parks and provide essential maintenance to its current parks, including preservation work to historic buildings. Prior to Proposition 5 TPWD did not receive a consistent amount of the sporting goods tax proceeds every year, which made it difficult for TPWD to budget and handle sudden capital expenses.
Recent increases in funding for capital construction and major repair, particularly from Sporting Goods Sales Tax revenue, will allow the department to make notable strides in addressing major repair backlogs and construction needs at state parks facilities statewide. However, the backlog of capital repair and construction needs remains substantial as facilities deteriorate due to age, use, and weather impacts. As a result, adequate and sustained funding from Sporting Goods Sales Tax for TPWD’s capital construction and construction program is very important to maintaining progress in addressing all TPWD facility and infrastructure needs statewide.
McKinney Falls State Park, located just outside Austin, is home to the 19th-century McKinney Homestead and includes a portion of the historic El Camino Real de los Tejas National Historic Trail.
DEFEND
Local Control of Preservation Policies
Preservation Austin will defend municipal authority to determine local historic preservation needs and policies. This includes opposing bills that limit cities’ ability to engage in preservation activities through planning and zoning, and to utilize incentives and regulations that protect local heritage.
Background:
Local municipalities are in the best position to determine their community’s preservation policies and needs, which vary widely across Texas. Zoning codes, demolition by neglect ordinances, and property tax exemptions and abatements are among the fundamental tools local governments use to protect historic resources. They make it possible for communities to preserve their unique heritage while allowing for public participation and diversity of support in these processes. We oppose any such legislation that aims to erode local authorities’ ability to make these local decisions.
During the last two legislative sessions, two bills were passed that severely restrict local governments’ authority to determine the process for designating historic properties and neighborhoods in their communities. Both HB2496 (86th session) and HB1474 (87th session) establish extremely high voting thresholds to achieve historic zoning for landmarks and districts, respectively. Historic zoning is one of the best and only tools available to protect historic communities from demolition and displacement. At present, Austin has only 8 local historic districts, significantly fewer than analogous cities nationwide. Since HB1474 was passed during the last session, Austin has not seen a single new historic district created.
While many in the development and real estate communities will frame historic zoning as a significant barrier for development, the reality is that less than 1% of properties in Austin are zoned historic. With the passage of these bills, the already onerous and resource-intensive process of achieving historic zoning has been made nearly impossible.
SUPPORT
Support legislative action that clarifies the importance of preservation as a means to address affordability, sustainability, and equity.
Background:
Preservation Austin is invested in policy solutions that use preservation as a means of addressing some of our city and state’s most pressing issues, including affordability, sustainability, and equity. Smaller, older housing is more naturally affordable than newer housing, particularly for lower income buyers and renters, making preservation an important piece in the overall solution for Austin’s affordability crisis. Our organization has invested time and resources into new policy solutions to meet this challenge, including collaboration with the Austin Infill Coalition on a Preservation Incentive to add density to Austin’s older neighborhoods.
Preservation also plays an important role in Austin’s sustainability goals. Our research shows that in 2020, over 655,00 tons of construction and demolition debris from residential and commercial development was sent to Travis County’s three solid waste landfills, accounting for 25% of all waste. All three landfills are located east of I-35 in Austin’s historically Black and Mexican American communities which have long suffered the impacts of environmental racism. This year, the City of San Antonio adopted a groundbreaking housing deconstruction ordinance that will reduce landfill waste and maximize the reuse of construction materials. San Antonio’s ordinance is at the vanguard of preservation and environmental solutions that are desperately needed in Austin and across Texas. We firmly believe policies that encourage preservation over demolition are uniquely equipped to address these urgent issues.
MONITOR
Monitor legislative action that impacts the non-profit sector such as tax exemptions and regulatory efforts.
Background:
Preservation Austin will actively monitor the legislative session for any legislative action that has the potential to impact the non-profit sector generally.