By Maxey H.B. No. 1030
75R3810 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the consequences of noncompliance by a property owner
1-3 with an ad valorem tax abatement agreement.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 312.205(a), Tax Code, is amended to read
1-6 as follows:
1-7 (a) An agreement made under Section 312.204 must:
1-8 (1) list the kind, number, and location of all
1-9 proposed improvements of the property;
1-10 (2) provide access to and authorize inspection of the
1-11 property by municipal employees to ensure that the improvements or
1-12 repairs are made according to the specifications and conditions of
1-13 the agreement;
1-14 (3) limit the uses of the property consistent with the
1-15 general purpose of encouraging development or redevelopment of the
1-16 zone during the period that property tax exemptions are in effect;
1-17 (4) provide for recapture by the municipality of the
1-18 [recapturing] property tax revenue lost as a result of the
1-19 agreement if the owner of the property fails to comply with each
1-20 applicable term of [make the improvements or repairs as provided
1-21 by] the agreement;
1-22 (5) contain each term agreed to by the owner of the
1-23 property;
1-24 (6) require the owner of the property to certify
2-1 annually to the governing body of each taxing unit that the owner
2-2 is in compliance with each applicable term of the agreement; [and]
2-3 (7) provide for modification of the agreement by
2-4 [that] the governing body of the municipality and the property
2-5 owner; and
2-6 (8) provide for cancellation of the agreement by the
2-7 governing body of the municipality [may cancel or modify the
2-8 agreement] if the property owner fails to comply with each
2-9 applicable term of the agreement.
2-10 SECTION 2. Subchapter B, Chapter 312, Tax Code, is amended
2-11 by adding Section 312.211 to read as follows:
2-12 Sec. 312.211. ACTION BY TAXING UNIT ON NONCOMPLIANCE. (a)
2-13 If a property owner fails to comply with each applicable term of a
2-14 tax abatement agreement before the fifth anniversary of the date
2-15 the agreement is entered into, the governing body of the taxing
2-16 unit shall:
2-17 (1) cancel the agreement; and
2-18 (2) take all appropriate measures to recapture any
2-19 property tax revenue lost as a result of the agreement.
2-20 (b) Cancellation of a tax abatement agreement under this
2-21 section does not negate the property owner's duty under the
2-22 agreement to pay any property taxes the owner did not pay as a
2-23 result of the agreement.
2-24 SECTION 3. Section 312.402(e), Tax Code, is amended to read
2-25 as follows:
2-26 (e) An agreement made under this section by a county or
2-27 other taxing unit may be canceled, modified, or terminated in the
3-1 same manner and subject to the same limitations as provided by
3-2 Sections [Section] 312.208 and 312.211 for an agreement made under
3-3 Subchapter B.
3-4 SECTION 4. This Act applies only to a tax abatement
3-5 agreement entered into on or after the effective date of this Act.
3-6 A tax abatement agreement entered into before the effective date of
3-7 this Act is governed by the law as it existed immediately before
3-8 the effective date of this Act, and that law is continued in effect
3-9 for that purpose.
3-10 SECTION 5. This Act takes effect September 1, 1997.
3-11 SECTION 6. The importance of this legislation and the
3-12 crowded condition of the calendars in both houses create an
3-13 emergency and an imperative public necessity that the
3-14 constitutional rule requiring bills to be read on three several
3-15 days in each house be suspended, and this rule is hereby suspended.