By Oliveira H.B. No. 1448
77R2942 JD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to authorizing the governing body of a municipality or a
1-3 county to enter into a tax abatement agreement with the owner of a
1-4 leasehold interest in tax-exempt real property that is located in a
1-5 reinvestment zone.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Section 312.204(a), Tax Code, is amended to read
1-8 as follows:
1-9 (a) The governing body of a municipality eligible to enter
1-10 into tax abatement agreements under Section 312.002 may agree in
1-11 writing with the owner of taxable real property that is located in
1-12 a reinvestment zone, but that is not in an improvement project
1-13 financed by tax increment bonds, to exempt from taxation a portion
1-14 of the value of the real property or of tangible personal property
1-15 located on the real property, or both, for a period not to exceed
1-16 10 years, [subject to the rights of holders of outstanding bonds of
1-17 the municipality,] on the condition that the owner of the property
1-18 make specific improvements or repairs to the property. The
1-19 governing body of an eligible municipality may agree in writing
1-20 with the owner of a leasehold interest in tax-exempt real property
1-21 that is located in a reinvestment zone, but that is not in an
1-22 improvement project financed by tax increment bonds, to exempt a
1-23 portion of the value of tangible personal property located on the
1-24 real property, for a period not to exceed 10 years, on the
2-1 condition that the owner of the leasehold interest make specific
2-2 improvements or repairs to the real property. A tax abatement
2-3 agreement under this section is subject to the rights of holders of
2-4 outstanding bonds of the municipality. An agreement exempting
2-5 taxable real property may provide for the exemption of the real
2-6 property in each year covered by the agreement only to the extent
2-7 its value for that year exceeds its value for the year in which the
2-8 agreement is executed. An agreement exempting tangible personal
2-9 property located on taxable or tax-exempt real property may provide
2-10 for the exemption of tangible personal property located on the real
2-11 property in each year covered by the agreement other than tangible
2-12 personal property that was located on the real property at any time
2-13 before the period covered by the agreement with the municipality,
2-14 and other than inventory or supplies. In a municipality that has a
2-15 comprehensive zoning ordinance, an improvement, repair,
2-16 development, or redevelopment taking place under an agreement under
2-17 this section must conform to the comprehensive zoning ordinance.
2-18 SECTION 2. Section 312.210(b), Tax Code, is amended to read
2-19 as follows:
2-20 (b) A tax abatement agreement with the owner of real
2-21 property or tangible personal property that is located in the
2-22 reinvestment zone described by Subsection (a) and in a school
2-23 district that has a wealth per student that does not exceed the
2-24 equalized wealth level must exempt from taxation:
2-25 (1) the portion of the value of the property in the
2-26 amount specified in the joint agreement among the municipality,
2-27 county, and junior college district; and
3-1 (2) an amount equal to 10 percent of the maximum
3-2 portion of the value of the property that may under Section
3-3 312.204(a) be otherwise exempted from taxation.
3-4 SECTION 3. Section 312.402(a), Tax Code, is amended to read
3-5 as follows:
3-6 (a) The commissioners court may execute a tax abatement
3-7 agreement with the owner of taxable real property located in a
3-8 reinvestment zone designated under this subchapter. The court may
3-9 execute a tax abatement agreement with the owner of a leasehold
3-10 interest in tax-exempt real property that is located in a
3-11 reinvestment zone designated under this subchapter to exempt a
3-12 portion of the value of tangible personal property located on the
3-13 real property. The execution, duration, and other terms of an
3-14 agreement made under this section are governed by the provisions of
3-15 Sections 312.204, 312.205, and 312.211 applicable to a
3-16 municipality. Section 312.2041 applies to an agreement made by a
3-17 county under this section in the same manner as it applies to an
3-18 agreement made by a municipality under Section 312.204 or 312.211.
3-19 SECTION 4. This Act takes effect immediately if it receives
3-20 a vote of two-thirds of all the members elected to each house, as
3-21 provided by Section 39, Article III, Texas Constitution. If this
3-22 Act does not receive the vote necessary for immediate effect, this
3-23 Act takes effect September 1, 2001.