78R850 SMH-D

By:  Pitts                                                        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, Tax Code, is amended by adding 
Subsection (c-1) to read as follows:
	(c-1) For purposes of a tax rate calculation under this 
chapter, new property value does not include 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.
	SECTION 2.  This Act takes effect January 1, 2004, and 
applies to the tax rate calculations under Chapter 26, Tax Code, for 
a taxing unit only for a tax year that begins on or after the 
effective date of this Act.