79R16644 SMH-F
By: Ellis S.B. No. 1198
Substitute the following for S.B. No. 1198:
By: Puente C.S.S.B. No. 1198
A BILL TO BE ENTITLED
AN ACT
relating to the determination of the portion of the tax increment
produced by a municipality that the municipality is required to pay
into the tax increment fund for a reinvestment 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) Subject to the approval of the governing body of the
municipality that created the zone, the board of directors of a
reinvestment zone, as necessary or convenient to implement the
project plan and reinvestment zone financing plan and achieve their
purposes, may establish and provide for the administration of one
or more programs for the public purposes of developing and
diversifying the economy of the zone, eliminating unemployment and
underemployment in the zone, and developing or expanding
transportation, business, and commercial activity in the zone,
including programs to make grants and loans from the tax increment
fund of the zone for activities that benefit the zone and stimulate
business and commercial activity in the zone. For purposes of this
subsection, on approval of the municipality, the board of directors
of the zone has all the powers of a municipality under Chapter 380,
Local Government Code.
SECTION 2. Section 311.013, Tax Code, is amended by
amending Subsection (b) and adding Subsections (l) and (m) to read as
follows:
(b) Each taxing unit shall pay into the tax increment fund
for the zone an amount equal to the tax increment produced by the
unit, less the sum of:
(1) property taxes produced from the tax increments
that are, by contract executed before the designation of the area as
a reinvestment zone, required to be paid by the unit to another
political subdivision; and
(2) for a taxing unit other than the municipality that
created the zone, a portion, not to exceed 15 percent, of the tax
increment produced by the unit as provided by the reinvestment zone
financing plan or a larger portion as provided by Subsection (f).
(l) The governing body of a municipality that designates an
area as a reinvestment zone may determine in the designating
ordinance adopted under Section 311.003 or in the ordinance adopted
under Section 311.011 approving the reinvestment zone financing
plan for the zone the portion of the tax increment produced by the
municipality that the municipality is required to pay into the tax
increment fund for the zone. If a municipality does not determine
the portion of the tax increment produced by the municipality that
the municipality is required to pay into the tax increment fund for
a reinvestment zone, the municipality is required to pay into the
fund for the zone the entire tax increment produced by the
municipality, except as provided by Subsection (b)(1).
(m) The governing body of a municipality that is located in
a county with a population of more than 1.4 million but less than
2.1 million or in a county with a population of 3.3 million or more
by ordinance may reduce the portion of the tax increment produced by
the municipality that the municipality is required to pay into the
tax increment fund for the zone. The portion of the tax increment
produced by a municipality that the municipality is required to pay
into the tax increment fund for a reinvestment zone, as reduced by
the ordinance adopted under this subsection, together with all
other revenues required to be paid into the fund, must be sufficient
to complete and pay for the estimated costs of projects listed in
the reinvestment zone financing plan and pay any tax increment
bonds or notes issued for the zone, and any other obligations of the
zone.
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.