1-1     By:  Uresti (Senate Sponsor - Madla)                  H.B. No. 3001
 1-2           (In the Senate - Received from the House May 11, 2001;
 1-3     May 11, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 11, 2001, reported favorably by
 1-5     the following vote:  Yeas 4, Nays 0; May 11, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to effective dates for tax abatements.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1. Chapter 312.204(a), Tax Code, is amended to read
1-12     as follows:
1-13           (a)  The governing body of a municipality eligible to enter
1-14     into tax abatement agreements under Section 312.002 may agree in
1-15     writing with the owner of taxable real property that is located in
1-16     a reinvestment zone, but that is not in an improvement project
1-17     financed by tax increment bonds, to exempt from taxation a portion
1-18     of the value of the real property or of tangible personal property
1-19     located on the real property, or both, for a period not to exceed
1-20     10 years, subject to the rights of holders of outstanding bonds of
1-21     the municipality, on the condition that the owner of the property
1-22     make specific improvements or repairs to the property.  An
1-23     agreement may provide for the exemption of the real property in
1-24     each year covered by the agreement only to the extent its value for
1-25     that year exceeds its value for the year in which the agreement is
1-26     executed.  The agreement may take effect on January 1 of the next
1-27     tax year after the date the improvements or repairs are
1-28     substantially completed.  An agreement may provide for the
1-29     exemption of tangible personal property located on the real
1-30     property in each year covered by the agreement other than tangible
1-31     personal property that was located on the real property at any time
1-32     before the period covered by the agreement with the municipality,
1-33     and other than inventory or supplies. In a municipality that has a
1-34     comprehensive zoning ordinance, an improvement, repair,
1-35     development, or redevelopment taking place under an agreement under
1-36     this section must conform to the comprehensive zoning ordinance.
1-37           SECTION 2.  This Act takes effect September 1, 2001.
1-38                                  * * * * *