By: Gallegos S.B. No. 1658
A BILL TO BE ENTITLED
AN ACT
1-1 relating to tax credits for real property contributed to
1-2 institutions of higher education.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter C, Chapter 111, Tax Code, is amended
1-5 by adding Section 111.110 to read as follows:
1-6 Sec. 111.110. TAX CREDIT FOR REAL PROPERTY CONTRIBUTED TO AN
1-7 INSTITUTION OF HIGHER EDUCATION. (a) Subject to the provisions of
1-8 Subchapter D, Chapter 55, Education Code, the comptroller shall
1-9 issue a credit to be used by a taxpayer who qualifies for the
1-10 credit under that subchapter against the payment of a tax imposed
1-11 on the taxpayer:
1-12 (1) for the franchise tax under Chapter 171; or
1-13 (2) if the taxpayer holds a direct payment permit for
1-14 the sales and use tax under Chapter 151, for that tax.
1-15 (b) The credit applies to a tax originally due on or after
1-16 the date the credit is issued but not later than the end of the
1-17 20th calendar year following the calendar year in which the credit
1-18 was issued.
1-19 (c) A taxpayer may not claim a credit issued under this
1-20 section in a calendar year in an amount greater than five percent
1-21 of the total credit issued to that taxpayer.
1-22 (d) A taxpayer shall include with a return or report showing
1-23 an amount of tax due against which a taxpayer claims a credit under
2-1 this section, a statement containing the following information:
2-2 (1) the original amount of the credit and its date of
2-3 issue;
2-4 (2) the total amount of the credit previously claimed
2-5 by the taxpayer;
2-6 (3) the amount of credit claimed on the attached
2-7 return;
2-8 (4) the remaining unused credit amount; and
2-9 (5) the calendar year in which the credit expires.
2-10 (e) The comptroller may recover an amount erroneously
2-11 claimed as a credit in a jeopardy or deficiency determination
2-12 issued before the fourth anniversary of the date on which the
2-13 erroneous claim is filed.
2-14 SECTION 2. Chapter 55, Education Code, is amended by adding
2-15 Subchapter D to read as follows:
2-16 SUBCHAPTER D. TAX CREDIT FOR CONTRIBUTED REAL PROPERTY
2-17 Sec. 55.51. PETITION FOR TAX CREDIT; QUALIFICATIONS.
2-18 (a) If the governing board of an institution determines that the
2-19 funds to acquire a parcel of real estate may not be provided
2-20 through the issuance of revenue bonds under this chapter, the
2-21 governing board may petition the Texas Higher Education
2-22 Coordinating Board, in accordance with the rules and regulations
2-23 adopted under Section 61.027, for the issuance of a tax credit to
2-24 the owner of the real estate in the amount provided by this
2-25 subchapter in exchange for the owner's transfer of the parcel of
3-1 real estate to the institution.
3-2 (b) A taxpayer may qualify for a tax credit under this
3-3 subchapter only if:
3-4 (1) the parcel of real estate that is the subject of
3-5 the petition is located in a county with a population of more than
3-6 2,500,000;
3-7 (2) the institution seeking ownership of the parcel
3-8 has more than 29,000 students enrolled or registered during its
3-9 regular term at a facility of the institution located in a county
3-10 with a population of more than 2,500,000; and
3-11 (3) the parcel of real estate owned by the taxpayer is
3-12 transferred to the institution on or before August 31, 1996.
3-13 Sec. 55.52. TAX CREDIT PETITION. (a) In the petition
3-14 before the Texas Higher Education Coordinating Board authorized by
3-15 Section 55.51, the governing board shall:
3-16 (1) show that the desired parcel has been included in
3-17 the most recent campus facilities plan or similar master plan
3-18 adopted by the governing board as a property proposed or targeted
3-19 for acquisition;
3-20 (2) show that the desired parcel is being offered or
3-21 proposed for sale on the open market;
3-22 (3) provide an estimate of the current fair market
3-23 value of the desired parcel; and
3-24 (4) show the basis for the governing board's
3-25 determination that revenue bond funding may not be available.
4-1 (b) The petition must include a fair market valuation study
4-2 of the desired parcel completed and signed by an independent,
4-3 certified real estate appraiser with not less than five years
4-4 experience.
4-5 Sec. 55.53. RULING BY COORDINATING BOARD. (a) Not later
4-6 than the 90th day after the date the Texas Higher Education
4-7 Coordinating Board receives a petition authorized by Section 55.51,
4-8 the board shall, in accordance with the rules and regulations
4-9 adopted under Section 61.027, grant or deny the petition.
4-10 (b) Before deciding whether to grant or deny the petition,
4-11 the Texas Higher Education Coordinating Board shall request,
4-12 receive, and consider a report from the comptroller indicating:
4-13 (1) whether the estimate of fair market value
4-14 presented in the petition is derived in a reasonable and
4-15 professional manner;
4-16 (2) whether the owner of the real estate currently
4-17 owes any outstanding taxes collected or administered by the
4-18 comptroller; and
4-19 (3) whether the owner of the real estate qualifies for
4-20 the tax credit under Sections 55.51(b)(1) and (2).
4-21 (c) The Texas Higher Education Coordinating Board shall
4-22 issue a written notice of its ruling on a petition authorized by
4-23 Section 55.51 not later than the fifth day after the date of the
4-24 ruling and deliver its decision to the petitioning institution and
4-25 to the comptroller.
5-1 Sec. 55.54. ISSUANCE OF TAX CREDIT. (a) Not later than the
5-2 10th day after the date the Texas Higher Education Coordinating
5-3 Board grants a petition authorized by Section 55.51, the
5-4 comptroller shall issue a written notice to the owner of the parcel
5-5 of real estate that a tax credit in an amount equal to 50 percent
5-6 of the fair market value reported on the petition has been granted
5-7 conditioned on the completion of the transfer of the parcel to the
5-8 petitioning institution on or before August 31, 1996.
5-9 (b) The owner may not claim a tax credit before the owner
5-10 files with the comptroller a statement signed by the property owner
5-11 and the petitioning institution that the property transfer has been
5-12 completed on or before August 31, 1996.
5-13 Sec. 55.55. EXPIRATION DATE. This subchapter expires
5-14 January 1, 1997.
5-15 SECTION 3. This Act takes effect September 1, 1995.
5-16 SECTION 4. The importance of this legislation and the
5-17 crowded condition of the calendars in both houses create an
5-18 emergency and an imperative public necessity that the
5-19 constitutional rule requiring bills to be read on three several
5-20 days in each house be suspended, and this rule is hereby suspended.