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A BILL TO BE ENTITLED
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AN ACT
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relating to agreements authorizing a limitation on taxable value on |
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certain property to provide for the creation of jobs and the |
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generation of state and local tax revenue; authorizing fees; |
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authorizing a penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 403, Government Code, is amended by |
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adding Subchapter T to read as follows: |
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SUBCHAPTER T. AGREEMENTS TO CREATE JOBS AND GENERATE STATE AND |
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LOCAL TAX REVENUE |
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Sec. 403.601. PURPOSES. The purposes of this subchapter |
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are to: |
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(1) create new, high-paying permanent jobs and |
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construction jobs in this state; |
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(2) encourage financially positive economic |
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development in this state; |
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(3) provide a temporary competitive economic |
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incentive for attracting large-scale manufacturing projects to |
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this state that, in the absence of this subchapter, would likely |
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locate in another state or nation; |
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(4) strengthen the security and resource independence |
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of this state and nation by encouraging energy and water |
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infrastructure development, new and expanded electric power |
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generation, and electric grid reliability projects; |
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(5) promote the relocation of offshore manufacturing |
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facilities to this state; |
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(6) make this state a national and international |
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leader in new and innovative technologies; |
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(7) encourage the establishment of advanced |
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manufacturing industry sectors critical to national defense and |
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health care; |
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(8) create new wealth, raise personal income, and |
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foster long-term expansion of state and local tax bases; |
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(9) provide growing and sustainable economic |
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opportunity for the residents of this state; and |
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(10) incentivize the preceding objectives in a |
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balanced, transparent, and accountable manner. |
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Sec. 403.602. DEFINITIONS. In this subchapter: |
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(1) "Additional job" means a full-time job in |
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connection with an eligible project that is not a required job for |
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the same project. |
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(2) "Agreement" means an agreement entered into under |
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Section 403.612. |
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(3) "Applicant" means a person that applies for, or |
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enters into an agreement providing for, a limitation on the taxable |
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value of eligible property used as part of an eligible project, |
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including the person's assignees or successors-in-interest. |
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(4) "Appraised value," "tax year," and "taxing unit" |
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have the meanings assigned by Section 1.04, Tax Code. |
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(5) "Construction completion date" means the date on |
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which an eligible project is first capable of being used for the |
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purposes for which it is constructed. |
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(6) "Construction job" means an otherwise full-time |
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job that is temporary in nature and is performed before the start of |
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the incentive period applicable to an eligible project to perform |
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construction, maintenance, remodeling, or repair work for an |
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applicant in connection with the project. |
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(7) "Construction period" means the period prescribed |
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by an agreement as the construction period of the eligible project |
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that is the subject of the agreement. |
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(8) "Eligible project" means a project that: |
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(A) is a national or state security project or |
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supply chain infrastructure project; |
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(B) is a manufacturing project; or |
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(C) requires an investment in a school district |
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in this state of more than $1 billion. |
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(9) "Eligible property" means property, other than |
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property used for intermittent power generation to supply |
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electricity to the power grid, that is used as part of an eligible |
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project that is wholly owned by an applicant or leased by an |
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applicant under a capitalized lease and consists of: |
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(A) a new building or expansion of an existing |
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building, including a permanent, nonremovable component of a |
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building, that is: |
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(i) constructed after the date the |
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agreement pertaining to the project is entered into; and |
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(ii) located in an area designated as a |
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reinvestment zone under Chapter 311 or 312, Tax Code, or as an |
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enterprise zone under Chapter 2303 of this code, at the time the |
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agreement pertaining to the project is entered into; or |
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(B) tangible personal property, other than |
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inventory, first located in the zone described by Paragraph (A)(ii) |
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after the date the agreement pertaining to the project is entered |
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into. |
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(10) "Full-time job" means a permanent full-time job |
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that requires a total of at least 1,600 hours of work a year in |
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connection with an eligible project. |
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(11) "Grid reliability project" means a project: |
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(A) that generates base load or dispatchable |
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electricity for the power grid, including from thermal sources, or |
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that provides stored energy to the power grid from batteries, |
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regardless of power source; |
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(B) that increases the output capacity or |
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reliability of an existing dispatchable electric power generation |
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facility or that replaces dispatchable electric power generation |
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assets to extend the useful life of the facility, including |
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equipment that enables the use of multiple fuels; |
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(C) that creates or expands the capability to |
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store fuel used by an electric power generation facility, |
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regardless of whether the fuel is stored at the facility site; |
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(D) to produce hydrogen fuel or feed stock; |
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(E) that is a natural gas terminal or storage |
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facility; or |
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(F) that is a gas processing plant, including a |
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plant used in the processing, treatment, or fractionation of |
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natural gas. |
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(12) "Incentive period" for an eligible project means |
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the period prescribed by the agreement pertaining to the project |
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during which the eligible property used as part of the project is |
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subject to a limitation on taxable value. |
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(13) "Independent contractor" has the meaning |
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assigned by Section 406.121, Labor Code. |
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(14) "Investment" means the costs incurred by an |
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applicant to acquire or construct eligible property composing an |
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eligible project, other than the cost of land or inventory. |
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(15) "Manufacturing project" means a project |
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primarily engaged in activities described by Sectors 31-33 of the |
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2007 North American Industry Classification System, including |
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semiconductor fabrication cleanrooms and equipment as defined by |
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Section 151.318(q), Tax Code. |
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(16) "Metropolitan statistical area" means an area so |
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designated by the United States Office of Management and Budget. |
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(17) "National or state security project or supply |
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chain infrastructure project" means: |
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(A) a grid reliability project; or |
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(B) a seawater or brackish groundwater |
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desalination project. |
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(18) "Required job" means a job that an applicant |
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commits to create or demonstrate in connection with an eligible |
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project as prescribed by Section 403.604. |
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(19) "Total jobs" means the sum of required jobs and |
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additional jobs in connection with an eligible project. |
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Sec. 403.603. EXPIRATION. This subchapter expires December |
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31, 2036. |
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Sec. 403.604. REQUIRED JOBS AND INVESTMENT. (a) This |
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section does not apply to a national or state security project or |
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supply chain infrastructure project. |
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(b) To be eligible to enter into an agreement, an applicant |
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for a limitation on taxable value of eligible property to be used |
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for a proposed eligible project must agree to: |
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(1) if the project is to be located in a school |
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district with a taxable value of property of $10 billion or more for |
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the tax year preceding the year in which the applicant submits the |
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application as determined under Subchapter M: |
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(A) create at least 50 required jobs by the end of |
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the first tax year of the incentive period prescribed by the |
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agreement and demonstrate an average of at least that number of jobs |
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during each following tax year until the date the agreement |
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expires; and |
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(B) make an investment in the project in an |
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amount of at least $100 million before the incentive period begins; |
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(2) if the project is to be located in a school |
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district with a taxable value of property of at least $1 billion but |
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less than $10 billion for the tax year preceding the year in which |
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the applicant submits the application as determined under |
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Subchapter M: |
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(A) create at least 40 required jobs by the end of |
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the first tax year of the incentive period prescribed by the |
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agreement and demonstrate an average of at least that number of jobs |
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during each following tax year until the date the agreement |
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expires; and |
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(B) make an investment in the project in an |
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amount of at least $80 million before the incentive period begins; |
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(3) if the project is to be located in a school |
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district with a taxable value of property of at least $500 million |
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but less than $1 billion for the tax year preceding the year in |
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which the applicant submits the application as determined under |
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Subchapter M: |
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(A) create at least 25 required jobs by the end of |
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the first tax year of the incentive period prescribed by the |
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agreement and demonstrate an average of at least that number of jobs |
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during each following tax year until the date the agreement |
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expires; and |
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(B) make an investment in the project in an |
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amount of at least $50 million before the incentive period begins; |
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(4) if the project is to be located in a school |
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district with a taxable value of property of at least $100 million |
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but less than $500 million for the tax year preceding the year in |
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which the applicant submits the application as determined under |
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Subchapter M: |
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(A) create at least 10 required jobs by the end of |
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the first tax year of the incentive period prescribed by the |
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agreement and demonstrate an average of at least that number of jobs |
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during each following tax year until the date the agreement |
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expires; and |
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(B) make an investment in the project in an |
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amount of at least $25 million before the incentive period begins; |
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or |
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(5) if the project is to be located in a school |
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district with a taxable value of property of less than $100 million |
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for the tax year preceding the year in which the applicant submits |
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the application as determined under Subchapter M or in a school |
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district that is not located in a metropolitan statistical area: |
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(A) create at least five required jobs by the end |
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of the first tax year of the incentive period prescribed by the |
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agreement and demonstrate an average of at least that number of jobs |
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during each following tax year until the date the agreement |
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expires; and |
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(B) make an investment in the project in an |
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amount of at least $10 million before the incentive period begins. |
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(c) For purposes of Subsection (b), each required job |
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created in connection with an eligible project: |
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(1) must be a new full-time job in this state: |
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(A) maintained in the usual course and scope of |
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the applicant's business, which may be performed by an individual |
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who is a trainee under the Texans Work program established under |
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Chapter 308, Labor Code; or |
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(B) performed by an independent contractor and |
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the independent contractor's employees at the site of the project; |
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and |
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(2) may not be transferred by the applicant from an |
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existing facility or location in this state or otherwise created to |
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replace an existing job, unless the applicant fills the vacancy |
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caused by the transfer. |
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(d) For purposes of Subsection (b), an applicant may count |
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as a required job one construction job credit. An applicant is |
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entitled to one construction job credit in connection with an |
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eligible project for every 10 construction jobs created in |
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connection with the project before the date the incentive period |
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for the project begins. An applicant may elect to determine the |
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number of construction jobs for purposes of this subsection as the |
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quotient of: |
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(1) the total amount paid by the applicant for labor in |
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connection with construction of the project before the incentive |
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period for the project begins, as evidenced by: |
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(A) separated charges for labor services on |
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contractor invoices; or |
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(B) other documentation from contractors of the |
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cost of labor performed under lump-sum contracts; and |
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(2) the average annual wage for all jobs in the county |
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in which the project is primarily located during the most recent |
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four quarters for which data is available, as computed by the Texas |
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Workforce Commission. |
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(e) For purposes of calculating the applicable number of |
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required jobs under Subsection (b) in connection with an eligible |
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project, an applicant may aggregate the number of hours worked by |
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one or more individuals who work fewer than 1,600 hours a year in |
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connection with the project if the number of hours worked by each of |
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those individuals combined meets or exceeds 1,600 hours of work a |
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year. |
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(f) For purposes of Subsection (b), an applicant may |
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demonstrate that the applicant has met the applicable minimum |
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investment requirement by any reasonable means. The applicant is |
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considered to have met the applicable minimum investment |
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requirement if the most recent appraisal roll for the county in |
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which the eligible property is located indicates that the appraised |
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value of the property composing the project as of January 1 of the |
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first year of the incentive period is equal to or greater than the |
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minimum investment requirement applicable to the project. |
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Sec. 403.605. TAXABLE VALUE OF ELIGIBLE PROPERTY. (a) |
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Except as provided by Subsection (b), the taxable value for school |
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district maintenance and operations ad valorem tax purposes of |
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eligible property subject to an agreement for each tax year of the |
|
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incentive period prescribed by the agreement is equal to: |
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(1) $100 million, if the project subject to the |
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agreement is located in a school district with a taxable value of |
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property of $10 billion or more for the tax year preceding the year |
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in which the applicant submitted the application to which the |
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agreement pertains as determined under Subchapter M; |
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(2) $75 million, if the project subject to the |
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agreement is located in a school district with a taxable value of |
|
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property of at least $1 billion but less than $10 billion for the |
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tax year preceding the year in which the applicant submitted the |
|
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application to which the agreement pertains as determined under |
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Subchapter M; |
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(3) $50 million, if the project subject to the |
|
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agreement is located in a school district with a taxable value of |
|
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property of at least $500 million but less than $1 billion for the |
|
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tax year preceding the year in which the applicant submitted the |
|
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application to which the agreement pertains as determined under |
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Subchapter M; |
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(4) $25 million, if the project subject to the |
|
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agreement is located in a school district with a taxable value of |
|
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property of at least $100 million but less than $500 million for the |
|
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tax year preceding the year in which the applicant submitted the |
|
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application to which the agreement pertains as determined under |
|
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Subchapter M; or |
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(5) $5 million, if the project subject to the |
|
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agreement is located in a school district with a taxable value of |
|
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property of less than $100 million for the tax year preceding the |
|
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year in which the applicant submitted the application to which the |
|
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agreement pertains as determined under Subchapter M. |
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(b) The taxable value of eligible property for school |
|
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district maintenance and operations ad valorem tax purposes for a |
|
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tax year during the incentive period is the appraised value of the |
|
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property for that tax year if that value is less than the value of |
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the property as determined under Subsection (a). |
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(c) The taxable value of eligible property for school |
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district maintenance and operations ad valorem tax purposes is zero |
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for each tax year beginning with the tax year following the year in |
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which the agreement pertaining to the property is entered into and |
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ending December 31 of the tax year that includes the construction |
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completion date for the applicable eligible project. |
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(d) The chief appraiser for the appraisal district in which |
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eligible property is located shall determine the market value and |
|
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appraised value of the property and include the market value, |
|
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appraised value, and taxable value of the property as determined |
|
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under this section in the appraisal records for the appraisal |
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district. |
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(e) The chief appraiser for the appraisal district in which |
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eligible property subject to an agreement is located may not use an |
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estimated value included in the application to which the agreement |
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pertains to determine the market value of the property. |
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Sec. 403.606. APPLICATION. (a) A person who proposes to |
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construct an eligible project in a school district may apply to the |
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governing body of the district to limit the taxable value for |
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maintenance and operations ad valorem tax purposes of the district |
|
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of the eligible property used as part of the proposed project. |
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(b) A person submitting an application under Subsection (a) |
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must use the form prescribed by the comptroller. The form must |
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contain the following information: |
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(1) the applicant's name, address, and Texas taxpayer |
|
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identification number and the contact information for the |
|
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applicant's authorized representative; |
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(2) the applicant's form of business and, if |
|
|
applicable, the name, address, and Texas taxpayer identification |
|
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number of the applicant's parent entity; |
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(3) the applicable school district's name and address |
|
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and the contact information for the district's authorized |
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representative; |
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(4) the legal description of the property on which the |
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project is proposed to be located and, if applicable, the address of |
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the proposed project; |
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(5) the applicable number of required jobs prescribed |
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by Section 403.604 for the proposed project; |
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(6) a list of each taxing unit in which the project is |
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proposed to be located; |
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(7) a brief description of the proposed project, |
|
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including the classification of the project as designated by the |
|
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North American Industry Classification System; |
|
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(8) a brief description of the eligible property to be |
|
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used as part of the proposed project; |
|
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(9) a projected timeline for construction and |
|
|
completion of the proposed project, including the projected dates |
|
|
on which construction will begin, construction will be completed, |
|
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and commercial operations will start; |
|
|
(10) the proposed incentive period; |
|
|
(11) the name and location of the existing or proposed |
|
|
reinvestment zone or enterprise zone in which the proposed project |
|
|
will be located; |
|
|
(12) a brief summary of the projected economic |
|
|
benefits of the proposed project; and |
|
|
(13) the applicant's signature and certification of |
|
|
the accuracy of the information included in the application. |
|
|
(c) The form prescribed by Subsection (b) must allow the |
|
|
applicant to segregate confidential information described by |
|
|
Section 403.622(a) from other information in the application. |
|
|
(d) An applicant must include with an application the |
|
|
following: |
|
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(1) an application fee payable to the school district |
|
|
in an amount determined by the district not to exceed $60,000 for an |
|
|
initial application, inclusive of the costs of processing the |
|
|
application, retaining professional services, preparing the school |
|
|
finance impact report required by Section 403.608, and, if |
|
|
applicable, creating a reinvestment zone or enterprise zone; |
|
|
(2) a map showing the site of the proposed project; and |
|
|
(3) the economic benefit statement prepared under |
|
|
Section 403.607 in connection with the proposed project. |
|
|
(e) A school district that receives an application under |
|
|
this section shall forward the application to the comptroller not |
|
|
later than the seventh day after the date the district receives the |
|
|
application. |
|
|
(f) The comptroller may request that an applicant provide |
|
|
any additional information the comptroller reasonably determines |
|
|
is necessary to complete the comptroller's evaluation of the |
|
|
application. The comptroller may require an applicant to submit |
|
|
the additional information by a certain date and may extend that |
|
|
deadline on a showing of good cause. The comptroller is not |
|
|
required to take any further action on an application until it is |
|
|
complete. |
|
|
(g) The comptroller shall notify an applicant and the |
|
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pertinent school district when the applicant's application is |
|
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administratively complete. |
|
|
Sec. 403.607. ECONOMIC BENEFIT STATEMENT. (a) An |
|
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applicant shall submit an economic benefit statement with the |
|
|
applicant's application. |
|
|
(b) An economic benefit statement must include the |
|
|
following information for each year of the period that begins on the |
|
|
date the applicant projects construction of the proposed project |
|
|
that is the subject of the application will begin and ends on the |
|
|
25th anniversary of the date the incentive period ends: |
|
|
(1) an estimate of the number of total jobs that will |
|
|
be created by the project; |
|
|
(2) an estimate of the total amount of capital |
|
|
investment that will be created by the project; |
|
|
(3) an estimate of the increase in appraised value of |
|
|
property that will be attributable to the project; |
|
|
(4) an estimate of the amount of ad valorem taxes that |
|
|
will be imposed by each taxing unit other than the school district |
|
|
on the property used as part of the project; |
|
|
(5) an estimate of the amount of state taxes that will |
|
|
be paid in connection with the project; and |
|
|
(6) an estimate of the associated economic benefits |
|
|
that may reasonably be attributed to the project, including: |
|
|
(A) the impact on the gross revenues and |
|
|
employment levels of local businesses that provide goods or |
|
|
services in connection with the project or to the applicant's |
|
|
employees; |
|
|
(B) the amount of state and local taxes that will |
|
|
be generated as a result of the indirect economic impact of the |
|
|
project, including all ad valorem taxes not otherwise estimated in |
|
|
Subdivision (4) that will be imposed on property placed into |
|
|
service as a result of the project; |
|
|
(C) the development of complementary businesses |
|
|
or industries that locate in this state as a direct consequence of |
|
|
the project; |
|
|
(D) the total impact of the project on the gross |
|
|
domestic product of this state; |
|
|
(E) the total impact of the project on personal |
|
|
income in this state; and |
|
|
(F) the total impact of the project on state and |
|
|
local taxes. |
|
|
(c) An applicant may use standard economic estimation |
|
|
techniques, including economic multipliers, to create an economic |
|
|
benefit statement. |
|
|
(d) The comptroller shall establish criteria for the |
|
|
methodology to be used by an applicant to create an economic benefit |
|
|
statement. |
|
|
(e) The comptroller may require an applicant to supplement |
|
|
or modify an economic benefit statement to ensure the accuracy of |
|
|
the estimates required to be included in the statement under |
|
|
Subsection (b). |
|
|
Sec. 403.608. SCHOOL FINANCE IMPACT REPORT. (a) A school |
|
|
district that receives an application under this subchapter shall |
|
|
promptly prepare a school finance impact report for the proposed |
|
|
project that is the subject of the application. |
|
|
(b) A school finance impact report must detail the projected |
|
|
tax and revenue consequences for the school district of the |
|
|
proposed project for each year of the 25-year period beginning on |
|
|
the date the application is received by the district. |
|
|
(c) A school finance impact report must include an estimate |
|
|
of the amount of ad valorem taxes imposed by the school district |
|
|
during the period described by Subsection (b) on the property used |
|
|
as part of the proposed project, together with all related property |
|
|
owned by the applicant or leased by the applicant under a |
|
|
capitalized lease and placed in service as a direct result of the |
|
|
project: |
|
|
(1) for maintenance and operations purposes; and |
|
|
(2) for interest and sinking fund purposes. |
|
|
Sec. 403.609. COMPTROLLER DETERMINATION REGARDING |
|
|
APPLICATION. (a) The comptroller shall determine whether to |
|
|
recommend that a school district approve an application submitted |
|
|
to the district under this subchapter. |
|
|
(b) The comptroller shall notify an applicant and a school |
|
|
district of the comptroller's determination under Subsection (a) |
|
|
regarding an application submitted to the district by the applicant |
|
|
not later than the 60th day after the date the comptroller |
|
|
determines the application is complete. |
|
|
(c) The comptroller shall recommend that a school district |
|
|
approve an application submitted to the district if the comptroller |
|
|
finds that: |
|
|
(1) the proposed project that is the subject of the |
|
|
application is an eligible project; |
|
|
(2) the proposed project is reasonably likely to |
|
|
generate, before the 25th anniversary of the last day of the |
|
|
incentive period, state or local tax revenue, including ad valorem |
|
|
tax revenue attributable to the effect of the project on the economy |
|
|
of this state, in an amount sufficient to offset the school district |
|
|
maintenance and operations ad valorem tax revenue lost as a result |
|
|
of the agreement; and |
|
|
(3) the agreement is a determining factor in the |
|
|
applicant's decision to make the investment and locate the project |
|
|
in this state. |
|
|
(d) Subsection (c)(3) does not apply to an application if |
|
|
the proposed project that is the subject of the application is a |
|
|
grid reliability project. |
|
|
Sec. 403.610. HEARING. (a) An applicant is entitled to a |
|
|
hearing if the comptroller determines not to recommend that the |
|
|
applicable school district approve an application submitted by the |
|
|
applicant to the district. |
|
|
(b) A hearing under this section is a contested case hearing |
|
|
and shall be conducted by the State Office of Administrative |
|
|
Hearings in the manner provided by Section 2003.101. |
|
|
(c) To receive a hearing under this section, an applicant |
|
|
must file a notice of appeal with the comptroller not later than the |
|
|
30th day after the date the comptroller notifies the applicant of |
|
|
the comptroller's determination under Section 403.609. The |
|
|
comptroller's determination becomes final if the applicant does not |
|
|
file the notice of appeal as provided by this subsection. |
|
|
(d) An applicant may seek judicial review of the |
|
|
comptroller's determination in a Travis County district court under |
|
|
the substantial evidence rule as provided by Subchapter G, Chapter |
|
|
2001. |
|
|
Sec. 403.611. SCHOOL DISTRICT ACTION ON APPLICATION. (a) |
|
|
The governing body of a school district shall approve or disapprove |
|
|
an application submitted to the district under this subchapter that |
|
|
the comptroller recommends be approved by the district. The |
|
|
governing body may approve an application only if the comptroller |
|
|
recommends the application be approved. The governing body shall |
|
|
approve or disapprove the application not later than the 35th day |
|
|
after the date the comptroller notifies the district of the |
|
|
comptroller's determination under Section 403.609. The governing |
|
|
body may extend the deadline prescribed by this subsection on |
|
|
written request of the applicant. |
|
|
(b) The governing body of a school district that disapproves |
|
|
an application may propose amendments to the application and |
|
|
reconsider the amended application not later than the 60th day |
|
|
after the date the governing body disapproves the application. The |
|
|
governing body may extend the deadline prescribed by this |
|
|
subsection on written request of the applicant. The school |
|
|
district may impose a fee of $15,000 for an amendment to an |
|
|
application. |
|
|
(c) If the governing body of the school district and the |
|
|
applicant agree on an amendment to the application under Subsection |
|
|
(b), the amended application must be submitted to the comptroller |
|
|
for a redetermination regarding the application. The comptroller |
|
|
shall notify the applicant and school district of the comptroller's |
|
|
redetermination regarding the application not later than the 30th |
|
|
day after the date the comptroller receives the amended |
|
|
application. |
|
|
(d) The presiding officer of the governing body of a school |
|
|
district shall notify the applicant and the comptroller of the |
|
|
governing body's approval or disapproval of an application not |
|
|
later than the seventh day after the date the governing body |
|
|
approves or disapproves the application. |
|
|
(e) Except for a payment authorized by this subchapter, an |
|
|
employee or representative of a school district, a member of the |
|
|
governing body of the district, or any other person may not |
|
|
intentionally or knowingly solicit, accept, agree to accept, or |
|
|
require any payment of money or transfer of property or other thing |
|
|
of value, directly or indirectly, to the district, an employee or |
|
|
representative of the district, a member of the governing body of |
|
|
the district, or any other person in recognition of, anticipation |
|
|
of, or consideration for approval of an application under this |
|
|
section. |
|
|
(f) Except for a payment authorized by this subchapter, an |
|
|
applicant, an employee or representative of the applicant, or any |
|
|
other person may not intentionally or knowingly offer, confer, |
|
|
agree to confer, or make a payment of money or transfer of property |
|
|
or other thing of value, directly or indirectly, to the school |
|
|
district, an employee or representative of the district, a member |
|
|
of the governing body of the district, or any other person in |
|
|
recognition of, anticipation of, or consideration for approval of |
|
|
an application under this section. |
|
|
Sec. 403.612. AGREEMENT. (a) The governing body of a |
|
|
school district that approves an application under Section 403.611 |
|
|
shall enter into an agreement with the applicant that submitted the |
|
|
application. |
|
|
(b) An agreement entered into under this section between an |
|
|
applicant and a school district for an eligible project shall: |
|
|
(1) specify the project to which the agreement |
|
|
applies; |
|
|
(2) specify the term of the agreement, which must: |
|
|
(A) begin on the date the agreement is entered |
|
|
into; and |
|
|
(B) end on December 31 of the third tax year |
|
|
following the end of the incentive period; |
|
|
(3) specify the incentive period for the project; |
|
|
(4) specify the manner for determining the taxable |
|
|
value for school district maintenance and operations ad valorem tax |
|
|
purposes during the incentive period under Section 403.605 for the |
|
|
eligible property subject to the agreement; |
|
|
(5) specify the applicable jobs and investment |
|
|
requirements prescribed by Section 403.604 and require the |
|
|
applicant to comply with those requirements; |
|
|
(6) if the applicant is subject to the jobs |
|
|
requirement prescribed by Section 403.604, require that the average |
|
|
annual wage paid to all persons employed by the applicant in |
|
|
connection with the project used to calculate total jobs, other |
|
|
than a required job derived from a construction job credit, exceed |
|
|
the average annual wage for all jobs in the county during the most |
|
|
recent four quarters for which data is available, as computed by the |
|
|
Texas Workforce Commission, with the applicant's average annual |
|
|
wage being equal to the quotient of: |
|
|
(A) the applicant's total wages paid, other than |
|
|
wages paid for construction jobs, as reported under Section |
|
|
403.617(c)(4); and |
|
|
(B) the applicant's number of total jobs, other |
|
|
than a required job derived from a construction job credit, as |
|
|
reported under Section 403.617(c)(3); |
|
|
(7) require the applicant to pay a penalty prescribed |
|
|
by Section 403.615 if the applicant fails to comply with an |
|
|
applicable jobs or wage requirement; |
|
|
(8) authorize the district to terminate the agreement |
|
|
if the applicant fails to meet a material requirement of the |
|
|
agreement as provided by Subsection (e); and |
|
|
(9) incorporate each relevant provision of this |
|
|
subchapter. |
|
|
(c) An agreement entered into under this section between an |
|
|
applicant and a school district pertaining to an eligible project |
|
|
may: |
|
|
(1) require the applicant to: |
|
|
(A) either: |
|
|
(i) share a percentage of the applicant's |
|
|
tax revenue savings with the district, as computed under Section |
|
|
403.614; or |
|
|
(ii) pay the district an amount specified |
|
|
in the agreement, which may not be less than $75,000 for each tax |
|
|
year during the incentive period; and |
|
|
(B) if the agreement requires the applicant to |
|
|
share a percentage of the applicant's tax revenue savings under |
|
|
Paragraph (A)(i), specify the tax savings percentages required to |
|
|
compute the applicable tax sharing amount under Section 403.614; |
|
|
(2) require the applicant to make an indemnity payment |
|
|
to the district as provided by Subsection (f); |
|
|
(3) authorize the applicant to terminate the agreement |
|
|
as an alternative to making an indemnity payment to the district as |
|
|
provided by Subsection (f); and |
|
|
(4) authorize the district to terminate the agreement |
|
|
as provided by Subsection (h). |
|
|
(d) An agreement entered into under this section between an |
|
|
applicant and a school district pertaining to an eligible project |
|
|
may not require the applicant to make a payment to the district |
|
|
other than a payment prescribed by this subchapter. |
|
|
(e) This subsection applies to a term described by |
|
|
Subsection (b)(8). The agreement must provide that the school |
|
|
district: |
|
|
(1) is authorized to terminate the agreement if the |
|
|
applicant fails to meet a material requirement of the agreement, |
|
|
other than a requirement described by Section 403.614; |
|
|
(2) may not terminate the agreement until the district |
|
|
provides written notice to the applicant of the proposed |
|
|
termination; |
|
|
(3) must provide the applicant the opportunity to cure |
|
|
and dispute the alleged failure, including through judicial action; |
|
|
and |
|
|
(4) is entitled to recover all lost ad valorem tax |
|
|
revenue from the project and interest on that amount calculated as |
|
|
provided by Section 111.060, Tax Code. |
|
|
(f) This subsection applies only if an agreement includes a |
|
|
term described by Subsection (c)(2). The agreement must require |
|
|
the applicant to make an indemnity payment to the school district |
|
|
for a tax year during the incentive period in which the district's |
|
|
revenue is substantially reduced as a result of the enactment of |
|
|
legislation, an amendment to the constitution, or a final judicial |
|
|
determination directly affecting the tax incentives authorized by |
|
|
this subchapter, as determined by the Texas Education Agency as |
|
|
provided by Subsection (g). The amount of the indemnity payment is |
|
|
equal to the difference between the amount of revenue the district |
|
|
would have received in that tax year had the legislation not been |
|
|
enacted, the constitution not been amended, or the final judicial |
|
|
determination not been made and the amount of revenue actually |
|
|
received by the district in that tax year. The agreement must |
|
|
provide that, as an alternative to making the indemnity payment, |
|
|
the applicant may elect to terminate the agreement by notifying the |
|
|
district in writing of the termination. An agreement terminated |
|
|
under this subsection is void, and all remaining obligations and |
|
|
benefits under the agreement and this subchapter terminate on the |
|
|
date the agreement is terminated. The agreement may not require the |
|
|
applicant to pay back any benefit the applicant received under the |
|
|
agreement before the date the agreement is terminated under this |
|
|
subsection. |
|
|
(g) For purposes of Subsection (f), the Texas Education |
|
|
Agency shall determine whether a law enacted by the legislature, an |
|
|
amendment to the constitution, or a final judicial determination |
|
|
results in a substantial change that affects the Foundation School |
|
|
Program, not including facilities funding, and directly affects an |
|
|
agreement entered into under this subchapter. If the agency makes a |
|
|
determination under this subsection related to an agreement, the |
|
|
agency shall establish the method the applicable school district |
|
|
must use to calculate the indemnity payment and certify the |
|
|
calculation made by the district. |
|
|
(h) This subsection applies only if an agreement includes a |
|
|
term described by Subsection (c)(4). The agreement may authorize |
|
|
the school district to terminate the agreement under the |
|
|
circumstances described by Subsection (f) if the district |
|
|
determines that the indemnity payment made by the applicant would |
|
|
not fully reimburse the district as required by that subsection. |
|
|
The district must notify the applicant in writing of the |
|
|
termination. An agreement terminated under this subsection is |
|
|
void, and all remaining obligations and benefits under the |
|
|
agreement and this subchapter terminate on the date the agreement |
|
|
is terminated. The agreement may not require the applicant to pay |
|
|
back any benefit the applicant received under the agreement before |
|
|
the date the agreement is terminated under this subsection. |
|
|
(i) An applicant and a school district may modify the terms |
|
|
of an agreement that do not materially modify the jobs or investment |
|
|
requirements prescribed by the agreement. The district may impose |
|
|
a fee of $15,000 for an amendment to an agreement. |
|
|
(j) The school district shall append the economic benefit |
|
|
statement applicable to the project that is the subject of the |
|
|
agreement to the agreement. |
|
|
(k) The school district shall submit each agreement entered |
|
|
into by the district to the comptroller not later than the seventh |
|
|
day after the date the agreement is entered into. |
|
|
Sec. 403.613. INCENTIVE PERIOD. (a) An incentive period |
|
|
pertaining to an eligible project is the period specified in the |
|
|
agreement for the project, which must be a period of 10 consecutive |
|
|
tax years. |
|
|
(b) An incentive period may not begin: |
|
|
(1) earlier than January 1 of the first tax year |
|
|
following the construction completion date; or |
|
|
(2) later than January 1 of the first tax year |
|
|
following the 10th anniversary of the date the agreement is entered |
|
|
into. |
|
|
(c) Subject to Subsection (b), the beginning date of an |
|
|
incentive period specified in an agreement pertaining to an |
|
|
eligible project is deferred if the applicant does not satisfy the |
|
|
minimum investment requirement applicable to the project on or |
|
|
before the date the incentive period is specified to begin under the |
|
|
agreement. The incentive period is deferred until January 1 of the |
|
|
year following the year in which the applicant satisfies the |
|
|
investment requirement pertaining to the project. The deferral of |
|
|
an incentive period under this subsection does not affect the date |
|
|
on which the incentive period ends as prescribed by the agreement. |
|
|
(d) Subject to Subsection (b), an applicant may propose to |
|
|
modify the beginning and ending dates of the incentive period as |
|
|
provided by this subsection. The applicant shall provide notice of |
|
|
the proposed modification to the comptroller and the school |
|
|
district not later than the 90th day before the first day of the |
|
|
incentive period specified in Section 403.612(b)(3) or as proposed |
|
|
to be modified, whichever is earlier. The applicant shall revise |
|
|
the most recent economic benefit statement as necessary to reflect |
|
|
the proposed change to the incentive period. The applicant must |
|
|
include the revised economic benefit statement with the notice |
|
|
provided to the comptroller and the district under this subsection. |
|
|
The comptroller shall make the finding required by Section |
|
|
403.609(c)(2) regarding the project as proposed to be modified or |
|
|
determine that the finding cannot be made. The comptroller shall |
|
|
notify the applicant and the district of the comptroller's finding |
|
|
or determination not later than the 60th day after the date the |
|
|
comptroller receives notice from the applicant of the proposed |
|
|
modification. The applicant may appeal the comptroller's |
|
|
determination in the manner provided by Section 403.610. The |
|
|
incentive period for the project may not be modified if the |
|
|
comptroller determines that the finding required by Section |
|
|
403.609(c)(2) regarding the project as proposed to be modified |
|
|
cannot be made or, if the determination is appealed, the applicant |
|
|
is not successful on appeal before the beginning of the original or |
|
|
modified incentive period, whichever is earlier. |
|
|
Sec. 403.614. COMPUTATION OF TAX SHARING AMOUNT. (a) An |
|
|
applicant's tax revenue savings for eligible property that is |
|
|
subject to an agreement between the applicant and a school district |
|
|
is: |
|
|
(1) for a tax year during the period prescribed by |
|
|
Section 403.605(c), an amount equal to the product of: |
|
|
(A) the amount computed by dividing the appraised |
|
|
value of the property for that tax year by 100; and |
|
|
(B) the maintenance and operations ad valorem tax |
|
|
rate adopted by the district for that tax year; and |
|
|
(2) for a tax year during the incentive period |
|
|
prescribed by the agreement, an amount equal to the product of: |
|
|
(A) the amount computed by: |
|
|
(i) subtracting the taxable value of the |
|
|
property as determined under Section 403.612(b)(4) from the |
|
|
appraised value of the property for that tax year; and |
|
|
(ii) dividing the amount computed under |
|
|
Paragraph (A) by 100; and |
|
|
(B) the maintenance and operations ad valorem tax |
|
|
rate adopted by the district for that tax year. |
|
|
(b) An applicant's tax sharing amount for a tax year during |
|
|
the period described by Subsection (a)(1) is equal to 20 percent of |
|
|
the applicant's tax revenue savings as computed under that |
|
|
subdivision for that tax year. |
|
|
(c) An applicant's tax sharing amount for a tax year during |
|
|
the period described by Subsection (a)(2) in which the applicant's |
|
|
tax revenue savings as computed under that subdivision is: |
|
|
(1) $3 million or less is the amount equal to the |
|
|
product of the amount computed under Subsection (a)(2) and the |
|
|
applicable tax savings percentage specified in the agreement |
|
|
between the applicant and the school district, which may not exceed |
|
|
30 percent; |
|
|
(2) more than $3 million but less than $7 million is |
|
|
the amount equal to the sum of the following amounts: |
|
|
(A) the product of: |
|
|
(i) $3 million; and |
|
|
(ii) the applicable tax savings percentage |
|
|
specified in the agreement, which may not exceed 30 percent; and |
|
|
(B) the product of: |
|
|
(i) the difference between the amount |
|
|
computed under Subsection (a)(2) and $3 million; and |
|
|
(ii) the applicable tax savings percentage |
|
|
specified in the agreement, which may not exceed 20 percent; and |
|
|
(3) $7 million or more is the amount equal to the sum |
|
|
of the following amounts: |
|
|
(A) the product of: |
|
|
(i) $3 million; and |
|
|
(ii) the applicable tax savings percentage |
|
|
specified in the agreement, which may not exceed 30 percent; |
|
|
(B) the product of: |
|
|
(i) $4 million; and |
|
|
(ii) the applicable tax savings percentage |
|
|
specified in the agreement, which may not exceed 20 percent; and |
|
|
(C) the product of: |
|
|
(i) the difference between the amount |
|
|
computed under Subsection (a)(2) and $7 million; and |
|
|
(ii) the applicable tax savings percentage |
|
|
specified in the agreement, which may not exceed 10 percent. |
|
|
Sec. 403.615. FAILURE TO COMPLY WITH JOBS OR WAGE |
|
|
REQUIREMENT. (a) An applicant is liable to the state for a penalty |
|
|
in the amount computed under this subsection if the applicant fails |
|
|
to maintain at least the number of required jobs prescribed by the |
|
|
agreement to which the applicant is a party during the periods |
|
|
covered by two consecutive reports submitted by the applicant under |
|
|
Section 403.617. The amount of the penalty is equal to the product |
|
|
of: |
|
|
(1) the difference between: |
|
|
(A) the number of required jobs prescribed by the |
|
|
agreement; and |
|
|
(B) the number of required jobs actually created |
|
|
as stated in the most recent report submitted by the applicant under |
|
|
Section 403.617; and |
|
|
(2) the average annual wage prescribed by the |
|
|
agreement during the most recent four quarters for which data is |
|
|
available, as computed by the Texas Workforce Commission. |
|
|
(b) An applicant is liable to the state for a penalty in the |
|
|
amount computed under this subsection if the applicant fails to |
|
|
meet the average annual wage requirement prescribed by the |
|
|
agreement to which the applicant is a party, if any, during the |
|
|
periods covered by two consecutive reports submitted by the |
|
|
applicant under Section 403.617. The amount of the penalty is equal |
|
|
to the difference between: |
|
|
(1) the product of: |
|
|
(A) the actual average annual wage paid to all |
|
|
persons employed by the applicant in connection with the project |
|
|
that is the subject of the agreement as computed under Section |
|
|
403.612(b)(6); and |
|
|
(B) the number of required jobs prescribed by the |
|
|
agreement; and |
|
|
(2) the product of: |
|
|
(A) the average annual wage prescribed by the |
|
|
agreement; and |
|
|
(B) the number of required jobs prescribed by the |
|
|
agreement. |
|
|
(c) Notwithstanding Subsections (a) and (b), the amount of a |
|
|
penalty imposed on an applicant under this section may not exceed |
|
|
the amount of the ad valorem tax benefit received by the applicant |
|
|
under the agreement that is the subject of the penalty. |
|
|
(d) An applicant on request of the comptroller shall provide |
|
|
to the comptroller a schedule of required jobs created as of the |
|
|
date of the request under an agreement to which the applicant is a |
|
|
party. |
|
|
(e) A determination by the comptroller that an applicant has |
|
|
failed to meet the jobs or wage requirement prescribed by an |
|
|
agreement to which the applicant is a party is a deficiency |
|
|
determination under Section 111.008, Tax Code. A penalty imposed |
|
|
under this section is an amount the comptroller is required to |
|
|
collect, receive, administer, or enforce, and is subject to the |
|
|
payment and redetermination requirements of Sections 111.0081 and |
|
|
111.009, Tax Code. A redetermination under Section 111.009, Tax |
|
|
Code, of a determination under this section is a contested case as |
|
|
defined by Section 2001.003 of this code. |
|
|
(f) An applicant may challenge under Subchapters A and B, |
|
|
Chapter 112, Tax Code, a determination under this section that |
|
|
imposes a penalty on the applicant if the applicant contends that |
|
|
the amount of the penalty is unlawful or that the comptroller may |
|
|
not legally demand or collect the amount. |
|
|
(g) The comptroller shall deposit the amount collected |
|
|
under this section, including any interest applicable to the |
|
|
amount, to the credit of the foundation school fund. |
|
|
Sec. 403.616. AUDIT OF AGREEMENTS BY STATE AUDITOR. (a) |
|
|
Each year the state auditor shall select and review at least three |
|
|
major agreements to determine whether: |
|
|
(1) each agreement accomplishes the purposes of this |
|
|
subchapter as expressed in Section 403.601; and |
|
|
(2) the terms of each agreement were executed in |
|
|
compliance with the terms of this subchapter. |
|
|
(b) As part of the review, the state auditor shall make |
|
|
recommendations relating to increasing the efficiency and |
|
|
effectiveness of the administration of this subchapter. |
|
|
Sec. 403.617. BIENNIAL COMPLIANCE REPORT BY APPLICANT. (a) |
|
|
An applicant that is a party to an agreement shall submit a report |
|
|
to the comptroller as required by this section using the form |
|
|
adopted by the comptroller. |
|
|
(b) An applicant must submit a report required by this |
|
|
section to the comptroller not later than June 1 of each |
|
|
even-numbered year during the term of the agreement that is the |
|
|
subject of the report. |
|
|
(c) A report required by this section must include the |
|
|
following documents and information applicable to the agreement |
|
|
that is the subject of the report: |
|
|
(1) a certification by the applicant that is a party to |
|
|
the agreement that the applicant has met the jobs and investment |
|
|
requirements prescribed by the agreement, which must include: |
|
|
(A) a sworn affidavit stating: |
|
|
(i) the number of required jobs prescribed |
|
|
by the agreement; |
|
|
(ii) the number of total jobs created under |
|
|
the agreement as of December 31 of the preceding two years, |
|
|
including the number of total jobs for each category of required |
|
|
jobs; and |
|
|
(iii) the name and contact information of |
|
|
each person who employs a person described by Subparagraph (ii), |
|
|
other than the applicant or the applicant's affiliates; |
|
|
(B) if applicable, payroll records maintained |
|
|
for purposes of 40 T.A.C. Chapter 815; and |
|
|
(C) if applicable, evidence of the number of |
|
|
construction jobs created and construction job credits counted by |
|
|
the applicant as a required job; |
|
|
(2) the number assigned to the application by the |
|
|
comptroller for the agreement, name of the applicant, name of the |
|
|
school district, and name of and contact information for the |
|
|
applicant's representative; |
|
|
(3) the number of total jobs, not including |
|
|
construction job credits counted by the applicant as a required |
|
|
job, created by the project in each of the preceding two years; |
|
|
(4) the total wages paid for total jobs, not including |
|
|
wages paid for construction jobs, in each of the preceding two |
|
|
years; |
|
|
(5) the number of construction jobs created as |
|
|
determined under Section 403.604(d); |
|
|
(6) the total amount of the applicant's investment, |
|
|
including any additional amount invested by the applicant after the |
|
|
incentive period begins; |
|
|
(7) the appraised value of all property composing the |
|
|
project for each previous tax year of the agreement; |
|
|
(8) the taxable value of all property composing the |
|
|
project for each previous tax year of the agreement; |
|
|
(9) the amount of school district maintenance and |
|
|
operations ad valorem taxes imposed on the property composing the |
|
|
project and paid by the applicant for each previous tax year of the |
|
|
agreement; |
|
|
(10) the amount of school district interest and |
|
|
sinking fund ad valorem taxes imposed on the property composing the |
|
|
project and paid by the applicant for each previous tax year of the |
|
|
agreement; |
|
|
(11) the amount of school district ad valorem taxes |
|
|
that would have been imposed on the property composing the project |
|
|
and paid by the applicant in the absence of the agreement for each |
|
|
previous tax year of the agreement; |
|
|
(12) the amount of payments made by the applicant to |
|
|
the school district as prescribed by the agreement for each |
|
|
previous tax year of the agreement, listed by type of payment; and |
|
|
(13) the amount of ad valorem taxes imposed on the |
|
|
property composing the project by each taxing unit other than the |
|
|
school district and paid by the applicant for each previous tax year |
|
|
of the agreement, stated by taxing unit. |
|
|
(d) This subsection applies only to a report required to be |
|
|
submitted under this section by an applicant for the period that |
|
|
includes the first year of the incentive period as prescribed by the |
|
|
agreement that is the subject of the report or as deferred. In |
|
|
addition to the documents and information described by Subsection |
|
|
(c), the applicant must include with the certification required by |
|
|
Subsection (c)(1): |
|
|
(1) a list of the property tax account numbers |
|
|
assigned to the property composing the project; |
|
|
(2) the current total appraised value of the property |
|
|
composing the project; and |
|
|
(3) if applicable, a statement that the incentive |
|
|
period was deferred because the applicant did not meet the minimum |
|
|
investment requirement prescribed by the agreement before the date |
|
|
specified in the agreement. |
|
|
Sec. 403.618. SCHOOL DISTRICT REPORT. (a) A school |
|
|
district that is a party to an agreement must submit a report to the |
|
|
comptroller as prescribed by this section. |
|
|
(b) A school district must submit the report not later than |
|
|
June 1 of each even-numbered year: |
|
|
(1) beginning in the first even-numbered year |
|
|
following the year in which the governing body of the district |
|
|
approves the application for the project that is the subject of the |
|
|
agreement; and |
|
|
(2) ending in the last even-numbered year before the |
|
|
third anniversary of the expiration of the incentive period |
|
|
prescribed by the agreement. |
|
|
(c) The report must include: |
|
|
(1) the total amount received from the applicant under |
|
|
the agreement for each previous year; |
|
|
(2) the total amount of any other direct or indirect |
|
|
benefit received from the applicant for each previous year, |
|
|
including an in-kind contribution; and |
|
|
(3) the purposes for which the payments and benefits |
|
|
were used by the school district. |
|
|
Sec. 403.619. BIENNIAL REPORT TO LEGISLATURE. (a) The |
|
|
comptroller shall submit to the lieutenant governor, the speaker of |
|
|
the house of representatives, and each other member of the |
|
|
legislature a report on the agreements entered into under this |
|
|
subchapter. The comptroller must submit the report not later than |
|
|
December 1 of each even-numbered year. |
|
|
(b) The report must include: |
|
|
(1) an assessment of the following with regard to the |
|
|
agreements entered into under this subchapter, considered in the |
|
|
aggregate: |
|
|
(A) the total number of jobs created in this |
|
|
state; |
|
|
(B) the total effect on personal income in this |
|
|
state; |
|
|
(C) the total amount of investment in this state; |
|
|
(D) the total taxable value of property on the |
|
|
tax rolls in this state resulting from the agreements, including |
|
|
property subject to an agreement that has expired; |
|
|
(E) the total value of property subject to |
|
|
agreements that have not expired; and |
|
|
(F) the total fiscal effect resulting from the |
|
|
agreements on this state and on local governments in this state; and |
|
|
(2) an assessment of each agreement entered into under |
|
|
this subchapter that states for each agreement: |
|
|
(A) the number of required jobs prescribed by the |
|
|
agreement; |
|
|
(B) the number of jobs actually created under the |
|
|
agreement, including: |
|
|
(i) each job described by Section |
|
|
403.604(c)(1)(A); |
|
|
(ii) each job described by Section |
|
|
403.604(c)(1)(B); |
|
|
(iii) each construction job credit |
|
|
described by Section 403.604(d) counted by an applicant as a |
|
|
required job; and |
|
|
(iv) any additional jobs created or |
|
|
maintained in connection with the project that is the subject of the |
|
|
agreement, if reported by the applicant; |
|
|
(C) the number of total jobs created under the |
|
|
agreement, if the term of the agreement has expired; |
|
|
(D) the amount of the investment specified by the |
|
|
agreement; |
|
|
(E) the amount of the actual investment made for |
|
|
the applicable project before the expiration of the agreement; |
|
|
(F) the difference between the amount of ad |
|
|
valorem taxes that would have been imposed on the property |
|
|
composing the applicable project in the absence of the agreement |
|
|
and the amount of ad valorem taxes actually imposed on that property |
|
|
during the term of the agreement; |
|
|
(G) the total amount of state and local tax |
|
|
revenue attributable to the applicable project during the term of |
|
|
the agreement; |
|
|
(H) the total amount received by the school |
|
|
district from the applicant under the agreement for each previous |
|
|
year; |
|
|
(I) the total amount of any other direct or |
|
|
indirect benefit received by the district from the applicant for |
|
|
each previous year, including an in-kind contribution; and |
|
|
(J) the purposes for which the payments and |
|
|
benefits described by Paragraphs (H) and (I) were used by the |
|
|
district. |
|
|
(c) The comptroller may not include in the report |
|
|
information that is confidential under law. |
|
|
(d) The comptroller may use standard economic estimation |
|
|
techniques, including economic multipliers, to prepare the portion |
|
|
of the report described by Subsection (b)(1). |
|
|
(e) The comptroller may require an applicant to submit |
|
|
information required to complete the report on a form prescribed by |
|
|
the comptroller. |
|
|
Sec. 403.620. CONFLICT OF INTEREST. A person may not, |
|
|
directly or indirectly, represent, advise, or provide a service to |
|
|
both an applicant and a school district in connection with the same |
|
|
application submitted or agreement entered into under this |
|
|
subchapter. |
|
|
Sec. 403.621. TREATMENT OF PAYMENTS TO SCHOOL DISTRICTS. A |
|
|
payment by an applicant to a school district under this subchapter |
|
|
other than a payment of ad valorem taxes imposed by the district may |
|
|
not be treated as tax revenue collected by the district for any |
|
|
purpose under Chapter 48 or 49, Education Code. |
|
|
Sec. 403.622. CONFIDENTIALITY OF CERTAIN BUSINESS |
|
|
INFORMATION. (a) Information provided to a school district or the |
|
|
comptroller by an applicant under this subchapter that is a trade |
|
|
secret, as defined by Section 134A.002, Civil Practice and Remedies |
|
|
Code, is confidential and not subject to disclosure under Chapter |
|
|
552. |
|
|
(b) Payroll records reported under Section 403.617(c)(1)(A) |
|
|
or (B) by an applicant to the comptroller are confidential and not |
|
|
subject to disclosure under Chapter 552. |
|
|
Sec. 403.623. INTERNET POSTING OF INFORMATION. (a) |
|
|
Subject to Section 403.622, the comptroller shall post on the |
|
|
comptroller's Internet website the following information received |
|
|
by the comptroller: |
|
|
(1) each application submitted under this subchapter; |
|
|
(2) each map and economic benefit statement required |
|
|
to be submitted with an application under this subchapter; |
|
|
(3) each amendment to an application made under this |
|
|
subchapter; |
|
|
(4) each agreement entered into under this subchapter; |
|
|
and |
|
|
(5) each biennial compliance report submitted as |
|
|
required under this subchapter. |
|
|
(b) Except as provided by Subsection (c), the comptroller |
|
|
shall post the information described by Subsection (a) as soon as |
|
|
practicable after the date the comptroller receives the |
|
|
information. |
|
|
(c) The comptroller shall post the information described by |
|
|
Subsections (a)(1), (2), and (3) not later then the 10th business |
|
|
day after the date the comptroller receives the information. |
|
|
(d) The comptroller shall continue to post the information |
|
|
required by this section until the date the agreement to which the |
|
|
information relates expires. |
|
|
Sec. 403.624. RULES AND FORMS. (a) The comptroller shall |
|
|
adopt rules necessary to implement and administer this subchapter, |
|
|
including rules for: |
|
|
(1) determining whether an applicant meets the jobs |
|
|
and investment requirements prescribed by Section 403.604; and |
|
|
(2) authorizing an applicant or school district to |
|
|
submit any form or information required by this subchapter |
|
|
electronically. |
|
|
(b) The comptroller shall adopt forms necessary to |
|
|
implement and administer this subchapter, including the forms to be |
|
|
used by: |
|
|
(1) an applicant under Section 403.606; |
|
|
(2) an applicant under Section 403.617; and |
|
|
(3) a school district under Section 403.618. |
|
|
(c) The comptroller shall provide without charge one copy of |
|
|
the rules and forms adopted under this section to any person who |
|
|
states that the person intends to submit an application to a school |
|
|
district under this subchapter to limit the taxable value of |
|
|
eligible property used as part of an eligible project. |
|
|
SECTION 2. Section 48.2551(a), Education Code, is amended |
|
|
to read as follows: |
|
|
(a) In this section: |
|
|
(1) "DPV" is the taxable value of property in the |
|
|
school district, as determined by the agency by rule, using locally |
|
|
determined property values adjusted in accordance with Section |
|
|
403.302(d), Government Code; |
|
|
(2) "E" is the expiration of the exclusion of |
|
|
appraised property value for the preceding tax year that is |
|
|
recognized as taxable property value for the current tax year, |
|
|
which is the sum of the following: |
|
|
(A) property value that is no longer subject to a |
|
|
limitation on appraised value under former Subchapter B or C, |
|
|
Chapter 313, Tax Code, or a limitation on taxable value under |
|
|
Subchapter T, Chapter 403, Government Code; and |
|
|
(B) property value under Section 311.013(n), Tax |
|
|
Code, that is no longer excluded from the calculation of "DPV" from |
|
|
the preceding year because of refinancing or renewal after |
|
|
September 1, 2019; |
|
|
(3) "MCR" is the district's maximum compressed rate, |
|
|
which is the tax rate for the current tax year per $100 of valuation |
|
|
of taxable property at which the district must levy a maintenance |
|
|
and operations tax to receive the full amount of the tier one |
|
|
allotment to which the district is entitled under this chapter; |
|
|
(4) "PYDPV" is the district's value of "DPV" for the |
|
|
preceding tax year; and |
|
|
(5) "PYMCR" is the district's value of "MCR" for the |
|
|
preceding tax year. |
|
|
SECTION 3. Section 48.256, Education Code, is amended by |
|
|
amending Subsections (d) and (e) and adding Subsection (d-1) to |
|
|
read as follows: |
|
|
(d) This subsection applies to a school district in which |
|
|
the board of trustees entered into a written agreement with a |
|
|
property owner [under Section 313.027, Tax Code,] for the |
|
|
implementation of a limitation on taxable [appraised] value under |
|
|
Subchapter T, Chapter 403, Government [B or C, Chapter 313, Tax] |
|
|
Code. For purposes of determining "DPV" under Subsection (a) for a |
|
|
school district to which this subsection applies, the commissioner |
|
|
shall exclude a portion of the market value of property not |
|
|
otherwise fully taxable by the district under Subchapter T, Chapter |
|
|
403, Government [B or C, Chapter 313, Tax] Code[, before the |
|
|
expiration of the subchapter]. The comptroller shall provide |
|
|
information to the agency necessary for this subsection. |
|
|
(d-1) Subsection (d) applies to an agreement for the |
|
|
implementation of a limitation on appraised value under former |
|
|
Subchapter B or C, Chapter 313, Tax Code, that was in effect on |
|
|
January 1, 2023, in the same manner as that subsection applies to an |
|
|
agreement described by that subsection. If the agreement for the |
|
|
limitation on appraised value requires a [A] revenue protection |
|
|
payment to the school district, the payment [required as part of an |
|
|
agreement for a limitation on appraised value] shall be based on the |
|
|
district's taxable value of property for the preceding tax year. |
|
|
(e) Subsection (d-1) [(d)] does not apply to property that |
|
|
was the subject of an application under former Subchapter B or C, |
|
|
Chapter 313, Tax Code, made after May 1, 2009, that the comptroller |
|
|
recommended should be disapproved. |
|
|
SECTION 4. Section 2303.507, Government Code, is amended to |
|
|
read as follows: |
|
|
Sec. 2303.507. TAX INCREMENT FINANCING AND |
|
|
ABATEMENT; LIMITATIONS ON APPRAISED AND TAXABLE |
|
|
VALUE. Designation of an area as an enterprise zone is also |
|
|
designation of the area as a reinvestment zone for: |
|
|
(1) tax increment financing under Chapter 311, Tax |
|
|
Code; |
|
|
(2) tax abatement under Chapter 312, Tax Code; [and] |
|
|
(3) limitations on appraised value under former |
|
|
Subchapter B or C, Chapter 313, Tax Code; and |
|
|
(4) limitations on taxable value under Subchapter T, |
|
|
Chapter 403, of this code. |
|
|
SECTION 5. Section 23.03, Tax Code, is amended to read as |
|
|
follows: |
|
|
Sec. 23.03. COMPILATION OF LARGE PROPERTIES AND PROPERTIES |
|
|
SUBJECT TO LIMITATION ON APPRAISED OR TAXABLE VALUE. Each year the |
|
|
chief appraiser shall compile and send to the Texas [Department of] |
|
|
Economic Development and Tourism Office a list of properties in the |
|
|
appraisal district that in that tax year: |
|
|
(1) have a market value of $100 million or more; [or] |
|
|
(2) are subject to a limitation on appraised value |
|
|
under former Subchapter B or C, Chapter 313; or |
|
|
(3) are subject to a limitation on taxable value under |
|
|
Subchapter T, Chapter 403, Government Code. |
|
|
SECTION 6. Section 26.012(6), Tax Code, is amended to read |
|
|
as follows: |
|
|
(6) "Current total value" means the total taxable |
|
|
value of property listed on the appraisal roll for the current year, |
|
|
including all appraisal roll supplements and corrections as of the |
|
|
date of the calculation, less the taxable value of property |
|
|
exempted for the current tax year for the first time under Section |
|
|
11.31 or 11.315, except that: |
|
|
(A) the current total value for a school district |
|
|
excludes: |
|
|
(i) the total value of homesteads that |
|
|
qualify for a tax limitation as provided by Section 11.26; [and] |
|
|
(ii) new property value of property that is |
|
|
subject to an agreement entered into under former Subchapter B or C, |
|
|
Chapter 313; and |
|
|
(iii) new property value of property that |
|
|
is subject to an agreement entered into under Subchapter T, Chapter |
|
|
403, Government Code; and |
|
|
(B) the current total value for a county, |
|
|
municipality, or junior college district excludes the total value |
|
|
of homesteads that qualify for a tax limitation provided by Section |
|
|
11.261. |
|
|
SECTION 7. Section 171.602(f), Tax Code, is amended to read |
|
|
as follows: |
|
|
(f) The comptroller may not issue a credit under this |
|
|
section before the later of: |
|
|
(1) [September 1, 2018; or |
|
|
[(2)] the expiration of an agreement under former |
|
|
Subchapter B or C, Chapter 313, regarding the clean energy project |
|
|
for which the credit is issued; or |
|
|
(2) the expiration of an agreement under Subchapter T, |
|
|
Chapter 403, Government Code, regarding the clean energy project |
|
|
for which the credit is issued. |
|
|
SECTION 8. Section 312.0025(a), Tax Code, is amended to |
|
|
read as follows: |
|
|
(a) Notwithstanding any other provision of this chapter to |
|
|
the contrary, the governing body of a school district, in the manner |
|
|
required for official action and for purposes of former Subchapter |
|
|
B or C, Chapter 313, of this code or Subchapter T, Chapter 403, |
|
|
Government Code, may designate an area entirely within the |
|
|
territory of the school district as a reinvestment zone if the |
|
|
governing body finds that, as a result of the designation and the |
|
|
granting of a limitation on appraised value under former Subchapter |
|
|
B or C, Chapter 313, of this code or the granting of a limitation on |
|
|
taxable value under Subchapter T, Chapter 403, Government Code, for |
|
|
property located in the reinvestment zone, the designation is |
|
|
reasonably likely to: |
|
|
(1) contribute to the expansion of primary employment |
|
|
in the reinvestment zone; or |
|
|
(2) attract major investment in the reinvestment zone |
|
|
that would: |
|
|
(A) be a benefit to property in the reinvestment |
|
|
zone and to the school district; and |
|
|
(B) contribute to the economic development of the |
|
|
region of this state in which the school district is located. |
|
|
SECTION 9. This Act takes effect September 1, 2023. |