1-1     By:  Madla                                            S.B. No. 1535
 1-2           (In the Senate - Filed March 9, 2001; March 14, 2001, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; April 19, 2001, reported favorably by the following
 1-5     vote:  Yeas 7, Nays 0; April 19, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to effective dates for municipal tax abatements.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Subsection (a), Section 312.204, Tax Code, is
1-11     amended to read as follows:
1-12           (a)  The governing body of a municipality eligible to enter
1-13     into tax abatement agreements under Section 312.002 may agree in
1-14     writing with the owner of taxable real property that is located in
1-15     a reinvestment zone, but that is not in an improvement project
1-16     financed by tax increment bonds, to exempt from taxation a portion
1-17     of the value of the real property or of tangible personal property
1-18     located on the real property, or both, for a period not to exceed
1-19     10 years, subject to the rights of holders of outstanding bonds of
1-20     the municipality, on the condition that the owner of the property
1-21     make specific improvements or repairs to the property.  An
1-22     agreement may provide for the exemption of the real property in
1-23     each year covered by the agreement only to the extent its value for
1-24     that year exceeds its value for the year in which the agreement is
1-25     executed.  The agreement may take effect on January 1 of the next
1-26     year after the date the improvements or repairs are substantially
1-27     completed.  An agreement may provide for the exemption of tangible
1-28     personal property located on the real property in each year covered
1-29     by the agreement other than tangible personal property that was
1-30     located on the real property at any time before the period covered
1-31     by the agreement with the municipality, and other than inventory or
1-32     supplies. In a municipality that has a comprehensive zoning
1-33     ordinance, an improvement, repair, development, or redevelopment
1-34     taking place under an agreement under this section must conform to
1-35     the comprehensive zoning ordinance.
1-36           SECTION 2.  This Act takes effect September 1, 2001.
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