1-1 AN ACT
1-2 relating to requirements regarding and terms of local tax abatement
1-3 agreements.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subsection (a), Section 312.206, Tax Code, is
1-6 amended to read as follows:
1-7 (a) If property taxes on property located in the taxing
1-8 jurisdiction of a municipality are abated under an agreement made
1-9 under Section 312.204 or 312.211, the governing body of each other
1-10 taxing unit eligible to enter into tax abatement agreements under
1-11 Section 312.002 in which the property is located may execute a
1-12 written tax abatement agreement with the owner of the property [not
1-13 later than the 90th day after the date the municipal agreement is
1-14 executed]. The agreement is not required to contain terms
1-15 identical to those contained in the agreement with the
1-16 municipality. The execution, duration, and other terms of an
1-17 agreement made under this section are governed by the provisions of
1-18 Sections 312.204, 312.205, and 312.211 applicable to a
1-19 municipality. [Section 312.205 applies to an agreement made by a
1-20 taxing unit under this section in the same manner as it applies to
1-21 an agreement made by a municipality under Section 312.204 or
1-22 312.211.] If the governing body of the taxing unit by official
1-23 action at any time before the execution of the municipal agreement
1-24 expresses an intent to be bound by the terms of the municipal
1-25 agreement if the municipality enters into an agreement under
2-1 Section 312.204 or 312.211 with the owner relating to the property,
2-2 the terms of the municipal agreement regarding the share of the
2-3 property to be exempt in each year of the municipal agreement apply
2-4 to the taxation of the property by the taxing unit.
2-5 SECTION 2. Subsection (a), Section 312.204, Tax Code, is
2-6 amended to read as follows:
2-7 (a) The governing body of a municipality eligible to enter
2-8 into tax abatement agreements under Section 312.002 may agree in
2-9 writing with the owner of taxable real property that is located in
2-10 a reinvestment zone, but that is not in an improvement project
2-11 financed by tax increment bonds, to exempt from taxation a portion
2-12 of the value of the real property or of tangible personal property
2-13 located on the real property, or both, for a period not to exceed
2-14 10 years, subject to the rights of holders of outstanding bonds of
2-15 the municipality, on the condition that the owner of the property
2-16 make specific improvements or repairs to the property. An
2-17 agreement may provide for the exemption of the real property in
2-18 each year covered by the agreement only to the extent its value for
2-19 that year exceeds its value for the year in which the agreement is
2-20 executed. The agreement may take effect on January 1 of the tax
2-21 year after the date the improvements or repairs are substantially
2-22 completed. An agreement may provide for the exemption of tangible
2-23 personal property located on the real property in each year covered
2-24 by the agreement other than tangible personal property that was
2-25 located on the real property at any time before the period covered
2-26 by the agreement with the municipality, and other than inventory or
3-1 supplies. In a municipality that has a comprehensive zoning
3-2 ordinance, an improvement, repair, development, or redevelopment
3-3 taking place under an agreement under this section must conform to
3-4 the comprehensive zoning ordinance.
3-5 SECTION 3. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1710 passed the Senate on
April 26, 2001, by the following vote: Yeas 30, Nays 0, one
present, not voting; and that the Senate concurred in House
amendment on May 17, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1710 passed the House, with
amendment, on May 11, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor