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.