HBA-LJP H.B. 3019 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3019
By: Chisum
Ways & Means
4/5/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, owners of certain real property in a reinvestment zone
are eligible to enter into a tax abatement agreement with a municipality
relating to a voluntary cleanup if the value of the property is adversely
affected by the release of a hazardous substance or contaminant according
to the two preceding appraisals by the appraisal office.  In practice, many
appraisals are based on market factors and do not involve the testing of
environmental data to determine the presence of contamination.  Properties
with a hazardous substance or contaminant may not be devalued because of
the practiced appraisal method and owners of the real property in a
reinvestment zone will not be eligible to enter into tax abatement
agreements relating to voluntary cleanup of the property.  House Bill 3019
removes the stipulation that the property in a reinvestment zone be
devalued by the release of a hazardous substance or contaminant for the
owner of the property to be eligible to enter into tax abatement agreements
relating to voluntary cleanups of the property. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 3019 amends the Tax Code to remove provisions stipulating that
an owner of real property in a reinvestment zone is eligible to enter into
a tax abatement agreement with a municipality relating to a voluntary
cleanup only if the value of the property is adversely affected by the
release of a hazardous substance or contaminant according to the two
preceding appraisals by the appraisal office. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.