78R9276 SMH-D


By:  Pitts                                                        H.B. No. 390

Substitute the following for H.B. No. 390:                                    

By:  Laubenberg                                               C.S.H.B. No. 390



A BILL TO BE ENTITLED

AN ACT

relating to the effect of tax increment financing by certain taxing 
units in the calculation of ad valorem tax rates for those taxing 
units.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 26.03(c), Tax Code, is amended to read as 
follows:       
	(c)  The portion of the captured appraised value of real 
property taxable by a taxing unit that corresponds to the portion of 
the tax increment of the unit from that property that the unit has 
agreed to pay into the tax increment fund for a reinvestment zone 
and that is not included in the calculation of "new property value" 
as defined by Section 26.012 is excluded from the value of property 
taxable by the unit in any tax rate calculation under this chapter.
	SECTION 2.  This Act takes effect January 1, 2004, and 
applies to the tax rate calculations under Chapter 26, Tax Code, 
only for a tax year that begins on or after the effective date of 
this Act.