By Coleman H.B. No. 3155
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to tax credits for real property contributed to
1-3 institutions of higher education.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter C, Chapter 111, Tax Code, is amended
1-6 by adding Section 111.110 to read as follows:
1-7 Sec. 111.110. TAX CREDIT FOR REAL PROPERTY CONTRIBUTED TO AN
1-8 INSTITUTION OF HIGHER EDUCATION. (a) Subject to the provisions of
1-9 Subchapter D, Chapter 55, Education Code, the comptroller shall
1-10 issue a credit to be used by a taxpayer against the payment of any
1-11 tax imposed under Chapter 171, or, in the case of a taxpayer
1-12 holding a direct payment permit, any tax imposed under Chapter 151,
1-13 originally due on the date immediately following the issuance of
1-14 such credit but no later than the end of the 10th full calendar
1-15 year following the calendar year in which the credit was issued.
1-16 (b) The amount of credit claimed by a taxpayer in any one
1-17 calendar year shall be limited to 20 percent of the total credit
1-18 issued to that taxpayer.
1-19 (c) With respect to each return or report showing an amount
1-20 of tax due against which a credit issued pursuant to this section
1-21 is claimed, a taxpayer shall attach a statement made a part of such
1-22 return which states:
1-23 (1) the original amount of the credit and its date of
2-1 issue;
2-2 (2) the total amount of such credit previously claimed
2-3 by the taxpayer;
2-4 (3) the amount of credit claimed on the attached
2-5 return;
2-6 (4) the remaining unused credit amount; and
2-7 (5) the calendar year in which the credit expires.
2-8 (d) A credit issued pursuant to this section can be claimed
2-9 only in the manner described in Subsection (b).
2-10 (e) An amount erroneously claimed as a credit issued
2-11 pursuant to this section may be recovered in a jeopardy or
2-12 deficiency determination issued within four years after the date on
2-13 which the erroneous claim is filed.
2-14 (f) "Institution of higher education" or "institution" means
2-15 the schools and colleges described in Section 61.003(8), Education
2-16 Code.
2-17 SECTION 2. Chapter 55, Education Code, is amended by adding
2-18 Subchapter D to read as follows:
2-19 SUBCHAPTER D. TAX CREDIT FOR CONTRIBUTED REAL PROPERTY
2-20 Sec. 55.51. REVENUE BONDS UNAVAILABLE. If the governing
2-21 board of an institution determines that the funds to acquire a
2-22 certain parcel of real estate may not be provided through the
2-23 issuance of revenue bonds pursuant to this chapter, the governing
2-24 board may petition the Texas Higher Education Coordinating Board,
2-25 in accordance with the rules and regulations adopted pursuant to
3-1 Section 61.027, for the issuance of a tax credit to the owner of
3-2 such real estate in exchange for the owner's transfer of the
3-3 property to the institution.
3-4 Sec. 55.52. TAX CREDIT PETITION. (a) In the petition
3-5 before the Texas Higher Education Coordinating Board authorized by
3-6 Section 55.51, the governing board shall:
3-7 (1) show that the desired parcel has been included in
3-8 the most recent campus facilities plan or similar master plan
3-9 adopted by the governing board as a property proposed or targeted
3-10 for acquisition;
3-11 (2) show that the desired parcel is being offered or
3-12 proposed for sale on the open market;
3-13 (3) provide an estimate of the current fair market
3-14 value of the desired parcel or parcels; and
3-15 (4) show the basis for the governing board's
3-16 determination that revenue bond funding may not be available.
3-17 (b) The petition shall include a fair market valuation study
3-18 of the desired parcel or parcels completed and signed by an
3-19 independent, certified real estate appraiser with not less than
3-20 five years experience.
3-21 Sec. 55.53. RULING BY COORDINATING BOARD. (a) Within 90
3-22 days of its receipt of a petition authorized by Section 55.51, the
3-23 Texas Higher Education Coordinating Board shall, in accordance with
3-24 the rules and regulations adopted pursuant to Section 61.027, grant
3-25 or deny the petition.
4-1 (b) Prior to deciding whether to grant or deny the petition,
4-2 the Texas Higher Education Coordinating Board shall request,
4-3 receive, and consider a report from the comptroller indicating:
4-4 (1) whether the estimate of fair market value
4-5 presented in the petition is derived in a reasonable and
4-6 professional manner; and
4-7 (2) whether the real property owner currently owes any
4-8 outstanding taxes collected or administered by the comptroller.
4-9 (c) The Texas Higher Education Coordinating Board shall
4-10 issue a written notice of its ruling on a petition authorized by
4-11 Section 55.51 within five days of such ruling and deliver its
4-12 decision to the petitioning institution and to the comptroller.
4-13 Sec. 55.54. ISSUANCE OF TAX CREDIT. Within 10 days of the
4-14 granting by the Texas Higher Education Coordinating Board of a
4-15 petition authorized by Section 55.51, the comptroller shall issue a
4-16 written notice to the owner of the subject parcel or parcels of
4-17 real estate that a tax credit in an amount equal to the fair market
4-18 value reported on the petition has been granted conditioned on the
4-19 completed transfer of such parcel or parcels to the petitioning
4-20 institution occurring within one year of the date of such notice.
4-21 No credit may be claimed prior to the filing with the comptroller
4-22 of a statement signed by the property owner and the petitioning
4-23 institution that the property transfer has been completed.
4-24 SECTION 3. This Act takes effect September 1, 1995.
4-25 SECTION 4. The importance of this legislation and the
5-1 crowded condition of the calendars in both houses create an
5-2 emergency and an imperative public necessity that the
5-3 constitutional rule requiring bills to be read on three several
5-4 days in each house be suspended, and this rule is hereby suspended.