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