HBA-CBW S.B. 1710 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1710 By: Van de Putte Ways & Means 5/2/2001 Engrossed BACKGROUND AND PURPOSE Under current law, if property taxes on property located in the taxing jurisdiction of a municipality are abated through a municipal tax abatement agreement or an agreement by a municipality relating to property subject to a voluntary cleanup agreement, the governing body of each other taxing unit eligible to enter into tax abatement agreements may execute a written tax abatement agreement with the owner of the property not later than the 90th day after the date the municipal agreement is executed. The 90-day rule may affect the taxing unit's ability to fully consider the implications of entering into the agreement and could create artificial time constraints which may burden all parties to the negotiation. Senate Bill 1710 removes the 90day rule for a taxing unit to execute a written tax abatement agreement with the owner of the property and clarifies tax law for taxing units other than municipalities. 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 Senate Bill 1710 amends the Tax Code to remove the provision that allows the governing body of an eligible taxing unit other than a municipality to enter into tax abatement agreements with the owner of the property not later than the 90th day after the date a municipal agreement is executed. The bill provides that the execution, duration, and other terms of an agreement are governed by existing law governing municipal tax abatement agreements, specific terms of the tax abatement agreements, and agreements by the municipality relating to property subject to the voluntary cleanup agreement. The bill removes the provision which provides that specific terms of a tax abatement agreement apply to a taxing unit in the same manner as the terms apply to an agreement made by a municipality under a municipal tax abatement agreement or an agreement by a municipality relating to property subject to a voluntary cleanup agreement. EFFECTIVE DATE September 1, 2001.