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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a municipality with a population of |
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less than 10,000 to provide that municipal ad valorem taxes imposed |
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on real property in or adjacent to an area that has qualified for |
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funding under certain revitalization or redevelopment programs not |
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be increased for a limited period. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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adding Section 11.34 to read as follows: |
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Sec. 11.34. LIMITATION OF MUNICIPAL TAXES ON REAL PROPERTY |
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IN DESIGNATED AREAS OF CERTAIN MUNICIPALITIES. (a) This section |
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applies only to a municipality having a population of less than |
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10,000. |
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(b) Acting under the authority of Section 1-o, Article VIII, |
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Texas Constitution, the governing body of a municipality, by |
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official action, may establish a limitation on the total amount of |
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municipal taxes that may be imposed on real property in or adjacent |
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to an area that has qualified for funding under the programs |
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administered by the Texas Department of Agriculture as described by |
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Section 1-o, Article VIII, Texas Constitution. |
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(c) The tax officials shall appraise the property to which |
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the limitation applies and calculate taxes as on other property, |
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but if the tax so calculated exceeds the limitation established |
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under this section, the tax imposed is the amount of the tax as |
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limited by this section, except as provided by Subsections (f) and |
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(g). |
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(d) A limitation on municipal tax increases under this |
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section must be established before December 31 of the first tax year |
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after the tax year in which funding under the program administered |
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by the Texas Department of Agriculture is initially approved for |
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the designated area. |
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(e) The municipality may not increase the total annual |
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amount of ad valorem taxes the municipality imposes on the property |
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above the amount of the taxes the municipality imposed on the |
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property in the tax year in which the governing body established the |
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limitation on municipal tax increases under this section. |
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(f) Subject to Subsection (g), a limitation on municipal tax |
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increases under this section expires on the earlier of: |
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(1) January 1 of the sixth tax year following the tax |
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year in which the governing body establishes the limitation under |
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this section; or |
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(2) January 1 of the first tax year in which the owner |
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of the property when the limitation takes effect ceases to own the |
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property. |
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(g) If property subject to a limitation on tax increases |
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under this section is owned by two or more persons, the limitation |
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expires on January 1 of the first tax year following the year in |
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which the ownership of at least a 50 percent interest in the |
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property is sold or otherwise transferred. |
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SECTION 2. This Act takes effect January 1, 2008, and |
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applies only to ad valorem taxes imposed on or after that date, but |
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only if the constitutional amendment authorizing the legislature to |
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permit a municipality with a population of less than 10,000 to |
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provide that municipal ad valorem taxes imposed on real property in |
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or adjacent to an area that has qualified for funding under certain |
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revitalization or redevelopment programs administered by the Texas |
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Department of Agriculture not be increased for the first five tax |
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years after the tax year in which the limitation on municipal tax |
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increases is established is approved by the voters. If that |
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amendment is not approved by the voters, this Act has no effect. |