By Lewis of Tarrant H.B. No. 1934
76R3434 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to tax increment financing.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 311.009, Tax Code, is amended by adding
1-5 Subsection (g) to read as follows:
1-6 (g) A person is not ineligible for appointment to the board
1-7 because the person is a member of the governing body of a taxing
1-8 unit that levies taxes on real property in the zone.
1-9 SECTION 2. Sections 311.013(b) and (f)-(i), Tax Code, are
1-10 amended to read as follows:
1-11 (b) Each taxing unit shall pay into the tax increment fund
1-12 for the zone an amount equal to the tax increment produced by the
1-13 unit, less the sum of:
1-14 (1) property taxes produced from the tax increments
1-15 that are, by contract executed before the designation of the area
1-16 as a reinvestment zone, required to be paid by the unit to another
1-17 political subdivision; and
1-18 (2) a portion, not to exceed 15 percent, of the tax
1-19 increment produced by the unit as provided by the reinvestment zone
1-20 financing plan or a larger portion as provided by Subsection (f)
1-21 [or (g)].
1-22 (f) [The governing body of a taxing unit that taxes real
1-23 property located in the zone may determine the portion of the tax
1-24 increment produced by the taxing unit that the taxing unit will
2-1 retain from the tax increment and may decide to retain all of that
2-2 tax increment. The determination is not effective unless the
2-3 governing body of the taxing unit notifies the board of directors
2-4 of the zone in writing of its determination under this subsection
2-5 on or before the 60th day after the date on which the governing
2-6 body of the municipality approves the reinvestment zone financing
2-7 plan as provided by Section 311.011(d). The governing body of the
2-8 taxing unit may not decrease the portion of the tax increment that
2-9 it has determined to dedicate to a reinvestment zone fund after the
2-10 project plan is approved.]
2-11 [(g)] A taxing unit is not required to pay into the tax
2-12 increment fund any of its tax increment produced from property
2-13 located in a reinvestment zone designated under Section
2-14 311.005(a)(5) or in an area added to a reinvestment zone under
2-15 Section 311.007(b) unless the taxing unit enters into an agreement
2-16 to do so with the governing body of the municipality that created
2-17 the zone. A taxing unit may enter into an agreement under this
2-18 subsection at any time before or after the zone is created or
2-19 enlarged. The agreement may include conditions for payment of that
2-20 tax increment into the fund and must specify the portion of the tax
2-21 increment to be paid into the fund and the years for which that tax
2-22 increment is to be paid into the fund. The agreement and the
2-23 conditions in the agreement are binding on the taxing unit, the
2-24 municipality, and the board of directors of the zone.
2-25 (g) [(h)] In lieu of permitting a portion of its tax
2-26 increment to be paid into the tax increment fund, and
2-27 notwithstanding the provisions of Section 312.203, a taxing unit,
3-1 other than a city, may elect to offer the owners of taxable real
3-2 property in a reinvestment zone created under this chapter an
3-3 exemption from taxation of all or part of the value of the
3-4 property. Any agreement concerning an exemption from ad valorem
3-5 taxes shall be executed in the manner and subject to the
3-6 limitations of Chapter 312; provided, however, the property covered
3-7 by the agreement need not be in a zone created pursuant to Chapter
3-8 312. A taxing unit may not offer a tax abatement agreement to
3-9 property owners in the zone after it has entered into an agreement
3-10 that its tax increments would be paid into the tax increment fund
3-11 pursuant to Subsection (f) [(g)].
3-12 (h) [(i)] Subsection [Subsections] (f) does [and (g) do] not
3-13 apply to a city with a population of more than 230,000 that borders
3-14 Mexico.
3-15 (i) Notwithstanding Subsection (c), a taxing unit is not
3-16 required to pay into a tax increment fund the applicable portion of
3-17 a tax increment attributable to delinquent taxes until those taxes
3-18 are collected.
3-19 SECTION 3. The importance of this legislation and the
3-20 crowded condition of the calendars in both houses create an
3-21 emergency and an imperative public necessity that the
3-22 constitutional rule requiring bills to be read on three several
3-23 days in each house be suspended, and this rule is hereby suspended,
3-24 and that this Act take effect and be in force from and after its
3-25 passage, and it is so enacted.