1-1 AN ACT
1-2 relating to authorizing the governing body of a municipality to
1-3 enter into a tax abatement agreement with the owner of a leasehold
1-4 interest in real property that is located in a reinvestment zone.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subsection (a), Section 312.204, Tax Code, is
1-7 amended to read as follows:
1-8 (a) The governing body of a municipality eligible to enter
1-9 into tax abatement agreements under Section 312.002 may agree in
1-10 writing with the owner of taxable real property that is located in
1-11 a reinvestment zone, but that is not in an improvement project
1-12 financed by tax increment bonds, to exempt from taxation a portion
1-13 of the value of the real property or of tangible personal property
1-14 located on the real property, or both, for a period not to exceed
1-15 10 years, [subject to the rights of holders of outstanding bonds of
1-16 the municipality,] on the condition that the owner of the property
1-17 make specific improvements or repairs to the property. The
1-18 governing body of an eligible municipality may agree in writing
1-19 with the owner of a leasehold interest in real property that is
1-20 located in a reinvestment zone to exempt a portion of the value of
1-21 the leasehold interest, if taxable, or of improvements or tangible
1-22 personal property located on the real property subject to the
1-23 leasehold interest, for a period not to exceed 10 years, on the
1-24 condition that the owner of the leasehold interest make specific
1-25 improvements or repairs to the real property. A tax abatement
2-1 agreement under this section is subject to the rights of holders of
2-2 outstanding bonds of the municipality. An agreement exempting
2-3 taxable real property may provide for the exemption of the real
2-4 property in each year covered by the agreement only to the extent
2-5 its value for that year exceeds its value for the year in which the
2-6 agreement is executed. An agreement exempting tangible personal
2-7 property located on real property may provide for the exemption of
2-8 tangible personal property located on the real property in each
2-9 year covered by the agreement other than tangible personal property
2-10 that was located on the real property at any time before the period
2-11 covered by the agreement with the municipality, and other than
2-12 inventory or supplies. In a municipality that has a comprehensive
2-13 zoning ordinance, an improvement, repair, development, or
2-14 redevelopment taking place under an agreement under this section
2-15 must conform to the comprehensive zoning ordinance.
2-16 SECTION 2. This Act takes effect immediately if it receives
2-17 a vote of two-thirds of all the members elected to each house, as
2-18 provided by Section 39, Article III, Texas Constitution. If this
2-19 Act does not receive the vote necessary for immediate effect, this
2-20 Act takes effect September 1, 2001.
S.B. No. 985
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 985 passed the Senate on
April 26, 2001, by the following vote: Yeas 30, Nays 0, one
present not voting; May 27, 2001, returned to the House for further
consideration; and that the Senate concurred in House amendment on
May 27, 2001, by the following vote: Yeas 18, Nays 0, one present
not voting.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 985 passed the House, with
amendments, on May 23, 2001, by the following vote: Yeas 141,
Nays 0, two present not voting; May 27, 2001, returned to the House
for further consideration; and that S.B. No. 985 passed the House
with amendment, on May 27, 2001, by the following vote: Yeas 137,
Nays 0, one present not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor