SRC-SEW S.B. 1711 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1711
By: Van de Putte
Intergovernmental Relations
4/11/2001
As Filed


DIGEST AND PURPOSE 

Under current law, municipalities and counties are able to offer tax
abatement incentives to owners of certain types of real property in a
reinvestment zone.  However, they are unable to offer the same tax
abatement incentives to lessees of such property.  Tax abatement can be a
useful tool in stimulating economic investment and development.  As
proposed, S.B. 1711 allows municipalities and counties to offer tax
abatement incentives to lessees of certain types of real property located
in a reinvestment zone.    

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 312.204, Tax Code, to authorize the governing
body of certain municipalities to agree in writing with the owner or lessee
of real property (rather than taxable real property) that is located in a
reinvestment zone, but that is not in an improvement project financed by
tax increment bonds, to exempt from taxation certain properties under
certain conditions.  Makes a conforming change. 

SECTION 2.  Amends Section 312.206, Tax Code, to make conforming changes.

SECTION 3.  Amends Section 312.210(b), Tax Code, to make conforming changes.

SECTION 4.  Amends Section 312.402(a), Tax Code, to make conforming changes.

SECTION 5.  Effective date: September 1, 2001.