SRC-JEC S.B. 1710 77(R)BILL ANALYSIS


Senate Research CenterS.B. 1710
By: Van de Putte
Intergovernmental Relations
6/13/2001
Enrolled


DIGEST AND PURPOSE 

Currently, if a municipality enters into certain property tax abatement
agreements with the owner of property located in its taxing jurisdiction,
the governing body of each other taxing unit in which the property is
located is eligible to enter into tax abatement agreements with the
property owner. However, these subsequent tax abatement agreements must be
entered within 90 days of the date the municipal agreement was executed.
This 90-day limit may impede another taxing unit's ability to enter a tax
abatement agreement.  S.B. 1710 removes the 90-day time limit for other
taxing units to enter an agreement and clarifies the law governing the
execution, duration, and other terms of certain tax abatement agreements. 

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 Section 312.206(a), Tax Code, to remove a deadline for a
governing body and a property owner to execute a written tax abatement
agreement.  Provides that the execution, duration, and other terms of an
agreement made under this section are governed by the provisions of
Sections 312.204, 312.205, and 312.211 applicable to a municipality.
Deletes text regarding the applicability of Section 312.205 to a certain
agreement. 

SECTION 2.  Amends Section 312.204(a), Tax Code, to authorize a certain tax
abatement agreement to take effect on January 1 of the tax year after the
date the improvements or repairs are substantially completed.  

SECTION 3.  Effective date: September 1, 2001.