SRC-SEW, MWN H.B. 1449 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1449
77R5993 SMH-DBy: Oliveira (Sibley)
Intergovernmental Relations
4/26/2001
Engrossed


DIGEST AND PURPOSE 

Local governments often use tax abatements to attract new industry and
commercial enterprises and to encourage the retention and development of
existing businesses. Over 700 tax abatement agreements have been executed
by Texas local governments since the early 1980s. Through 1999, these
agreements are credited with producing approximately 275,000 new or
retained jobs. Under current law, incorporated cities, counties, school
districts, and special districts are allowed to enter into tax abatement
agreements.  In 1995, the legislature reauthorized local governments to
continue using property tax abatements until September 1, 2001.  H.B. 1449
eliminates the expiration date on these tax abatements.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Repealer: Section 312.006 (Expiration Date), Tax Code.  

Repealer: Section 320.001 (Saving Provision After Expiration of Chapter
312), Tax Code. 

SECTION 2. Effective date: upon passage or September 1, 2001.