By Madla S.B. No. 1480
77R6000 GJH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration of reinvestment zones for tax
1-3 increment finance and ad valorem tax abatement and to ad valorem
1-4 tax abatement agreements for property in a reinvestment zone.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Sections 311.009(a), (b), and (f), Tax Code, are
1-7 amended to read as follows:
1-8 (a) The [Except as provided by Subsection (b), the] board of
1-9 directors of a reinvestment zone consists of at least five and not
1-10 more than 15 members, unless more than 15 members are required to
1-11 satisfy the requirements of this section [subsection]. A taxing
1-12 unit other than a municipality that has entered into an agreement
1-13 under Section 311.013 to pay all or part of the tax increment
1-14 produced by the unit into the tax increment fund for the zone may
1-15 appoint the same number of members as are appointed by the
1-16 municipality that created the zone, and each other [Each] taxing
1-17 unit other than a municipality that levies taxes on real property
1-18 in the zone may appoint one member of the board. A unit may waive
1-19 its right to appoint a director. [The governing body of the
1-20 municipality that created the zone may appoint not more than 10
1-21 directors to the board; except that if there are fewer than five
1-22 directors appointed by taxing units other than the municipality,
1-23 the governing body of the municipality may appoint more than 10
1-24 members as long as the total membership of the board does not
2-1 exceed 15.]
2-2 (b) If the zone was designated under Section 311.005(a)(5),
2-3 a taxing unit [the board of directors of the zone consists of nine
2-4 members. Each school district or county that levies taxes on real
2-5 property in the zone] may appoint a [one] member of the board only
2-6 if the taxing unit [school district or county] has entered into an
2-7 agreement under Section 311.013 to pay [approved the payment of]
2-8 all or part of the tax increment produced by the unit into the tax
2-9 increment fund for the zone. The member of the state senate in
2-10 whose district the zone is located is a member of the board, and
2-11 the member of the state house of representatives in whose district
2-12 the zone is located is a member of the board, except that either
2-13 may designate another individual to serve in the member's place at
2-14 the pleasure of the member. If the zone is located in more than
2-15 one senate or house district, this subsection applies only to the
2-16 senator or representative in whose district a larger portion of the
2-17 zone is located than any other senate or house district, as
2-18 applicable. [The remaining members of the board are appointed by
2-19 the governing body of the municipality that created the zone.]
2-20 (f) Each year the board of directors of a reinvestment zone
2-21 [governing body of the municipality] shall appoint one member of
2-22 the board to serve as chairman for a term of one year that begins
2-23 on January 1 of the following year. The board of directors may
2-24 elect a vice-chairman to preside in the absence of the chairman or
2-25 when there is a vacancy in the office of chairman. The board may
2-26 elect other officers as it considers appropriate.
2-27 SECTION 2. Section 312.002, Tax Code, is amended by adding
3-1 Subsection (e) to read as follows:
3-2 (e) The governing body of a taxing unit may include in the
3-3 unit's guidelines a fee in an amount not to exceed $1,000 for a
3-4 person applying for or requesting a tax abatement under this
3-5 chapter.
3-6 SECTION 3. Section 312.003, Tax Code, is amended to read as
3-7 follows:
3-8 Sec. 312.003. CONFIDENTIALITY OF PROPRIETARY INFORMATION.
3-9 Information that is provided to a taxing unit in connection with an
3-10 application or request for tax abatement under this chapter and
3-11 that describes the specific processes or business activities to be
3-12 conducted or the equipment or other property to be located on the
3-13 property for which tax abatement is sought is confidential and not
3-14 subject to public disclosure [until the tax abatement agreement is
3-15 executed. That information in the custody of a taxing unit after
3-16 the agreement is executed is not confidential under this section].
3-17 SECTION 4. Section 312.204(a), Tax Code, is amended to read
3-18 as follows:
3-19 (a) The governing body of a municipality eligible to enter
3-20 into tax abatement agreements under Section 312.002 may agree in
3-21 writing with the owner of taxable real property that is located in
3-22 a reinvestment zone, but that is not in an improvement project
3-23 financed by tax increment bonds, to exempt from taxation a portion
3-24 of the value of the real property or of tangible personal property
3-25 located on the real property, or both, for a period not to exceed
3-26 10 years, subject to the rights of holders of outstanding bonds of
3-27 the municipality, on the condition that the owner of the property
4-1 make specific improvements or repairs to the property. An
4-2 agreement may provide for the exemption of the real property in
4-3 each year covered by the agreement only to the extent its value for
4-4 that year exceeds its value for the year in which the agreement is
4-5 executed. The agreement may take effect on January 1 of the year
4-6 following the year in which the improvements or repairs are
4-7 substantially completed. An agreement may provide for the
4-8 exemption of tangible personal property located on the real
4-9 property in each year covered by the agreement other than tangible
4-10 personal property that was located on the real property at any time
4-11 before the period covered by the agreement with the municipality,
4-12 and other than inventory or supplies. In a municipality that has a
4-13 comprehensive zoning ordinance, an improvement, repair,
4-14 development, or redevelopment taking place under an agreement under
4-15 this section must conform to the comprehensive zoning ordinance.
4-16 SECTION 5. Section 312.206(a), Tax Code, is amended to read
4-17 as follows:
4-18 (a) If property taxes on property located in the taxing
4-19 jurisdiction of a municipality are abated under an agreement made
4-20 under Section 312.204 or 312.211, the governing body of each other
4-21 taxing unit eligible to enter into tax abatement agreements under
4-22 Section 312.002 in which the property is located may execute a
4-23 written tax abatement agreement with the owner of the property [not
4-24 later than the 90th day after the date the municipal agreement is
4-25 executed]. The agreement is not required to contain terms
4-26 identical to those contained in the agreement with the
4-27 municipality. Section 312.205 applies to an agreement made by a
5-1 taxing unit under this section in the same manner as it applies to
5-2 an agreement made by a municipality under Section 312.204 or
5-3 312.211. If the governing body of the taxing unit by official
5-4 action at any time before the execution of the municipal agreement
5-5 expresses an intent to be bound by the terms of the municipal
5-6 agreement if the municipality enters into an agreement under
5-7 Section 312.204 or 312.211 with the owner relating to the property,
5-8 the terms of the municipal agreement regarding the share of the
5-9 property to be exempt in each year of the municipal agreement apply
5-10 to the taxation of the property by the taxing unit.
5-11 SECTION 6. Sections 311.009(a) and (b), Tax Code, as amended
5-12 by this Act, apply only to the appointment of the board of
5-13 directors of a reinvestment zone that occurs on or after the
5-14 effective date of this Act. The appointment of the board of
5-15 directors of a reinvestment zone that occurs before the effective
5-16 date of this Act is governed by the law that was in effect
5-17 immediately before the effective date of this Act, and the former
5-18 law is continued in effect for that purpose.
5-19 SECTION 7. This Act takes effect September 1, 2001.