SRC-SEW S.B. 1535 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1535
By: Madla
Intergovernmental Relations
3/18/2001
As Filed


DIGEST AND PURPOSE 

Current law mandates that the maximum term of a tax phase-in is 10 years,
and provides that the term of the tax phase-in period commence the year
after the agreement is executed.  Accordingly, businesses that make
significant capital investments requiring a number of years to complete are
unable to receive the full benefit of the 10 year abatement on such
investments.  As proposed, S.B. 1535 allows the tax abatement to begin
January 1 of the year after the improvements or repairs are substantially
complete in order increase the tax base by providing an incentive for
businesses to make significant capital investments in reinvestment zones. 

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.  Amends Chapter 312.204(a), Tax Code, to authorize the agreement
to take effect on January 1 of the next year after the date the
improvements or repairs are substantially completed. 

SECTION 2.  Effective date: September 1, 2001.