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79R8575 SMH-F
By: Veasey H.B. No. 3202
A BILL TO BE ENTITLED
AN ACT
relating to the powers and duties of the board of directors of a tax
increment financing reinvestment zone and of the taxing units that
impose ad valorem taxes on property in the zone.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 311.010, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) Chapter 252, Local Government Code, does not apply to a
dedication, pledge, or other use of revenue in the tax increment
fund for a reinvestment zone by the board of directors of the zone
in carrying out its powers under Subsection (b).
SECTION 2. Sections 311.013(f) and (g), Tax Code, are
amended to read as follows:
(f) The municipality that created the reinvestment zone is
not required to pay into the tax increment fund for the zone any of
its tax increment produced from property located in the zone as
designated under Section 311.005(a) or in an area added to the zone
under Section 311.007 except to the extent provided by the
ordinance adopted by the governing body of the municipality in
creating the zone, the ordinance or resolution adopted by the
governing body of the municipality in enlarging the zone, or
another ordinance or resolution adopted by the governing body of
the municipality. A taxing unit, other than the municipality that
created the zone, is not required to pay into the tax increment fund
any of its tax increment produced from property located in a
reinvestment zone designated under Section 311.005(a) or in an area
added to a reinvestment zone under Section 311.007 unless the
taxing unit enters into an agreement to do so with the governing
body of the municipality that created the zone. A taxing unit may
enter into an agreement under this subsection at any time before or
after the zone is created or enlarged. The agreement may include
conditions for payment of that tax increment into the fund and must
specify the portion of the tax increment to be paid into the fund
and the years for which that tax increment is to be paid into the
fund. The agreement and the conditions in the agreement are binding
on the taxing unit, the municipality, and the board of directors of
the zone.
(g) Subject to the provisions of Section 311.0125, in lieu
of permitting a portion of its tax increment to be paid into the tax
increment fund, and notwithstanding the provisions of Section
312.203, a taxing unit, including [other than] a city, may elect to
offer the owners of taxable real property in a reinvestment zone
created under this chapter an exemption from taxation of all or part
of the value of the property. To be effective, an agreement to
exempt from taxation all or part of the value of taxable real
property in a reinvestment zone created under this chapter must be
approved by:
(1) the board of directors of the reinvestment zone;
and
(2) the governing body of each taxing unit that
imposes taxes on real property in the reinvestment zone and
deposits or agrees to deposit any of its tax increment into the tax
increment fund for the zone [Any agreement concerning an exemption
from ad valorem taxes shall be executed in the manner and subject to
the limitations of Chapter 312; provided, however, the property
covered by the agreement need not be in a zone created pursuant to
Chapter 312. A taxing unit may not offer a tax abatement agreement
to property owners in the zone after it has entered into an
agreement that its tax increments would be paid into the tax
increment fund pursuant to Subsection (f)].
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.