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AN ACT
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relating to the authority of the governing body of a municipality or |
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the commissioners court of a county to enter into an ad valorem tax |
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abatement agreement. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 312.006, Tax Code, as amended by |
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Chapters 1029 (H.B. 1449) and 1505 (H.B. 1200), Acts of the 77th |
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Legislature, Regular Session, 2001, is amended to read as follows: |
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Sec. 312.006. EXPIRATION DATE. If not continued in effect, |
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this chapter expires September 1, 2019 [2009]. |
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SECTION 2. Subchapter A, Chapter 312, Tax Code, is amended |
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by adding Section 312.007 to read as follows: |
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Sec. 312.007. DEFERRAL OF COMMENCEMENT OF ABATEMENT PERIOD. |
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(a) In this section, "abatement period" means the period during |
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which all or a portion of the value of real property or tangible |
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personal property that is the subject of a tax abatement agreement |
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is exempt from taxation. |
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(b) Notwithstanding any other provision of this chapter, |
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the governing body of the taxing unit granting the abatement and the |
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owner of the property that is the subject of the agreement may agree |
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to defer the commencement of the abatement period until a date that |
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is subsequent to the date the agreement is entered into, except that |
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the duration of an abatement period may not exceed 10 years. |
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SECTION 3. Section 312.402, Tax Code, is amended by |
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amending Subsection (a) and adding Subsections (a-1), (a-2), and |
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(a-3) to read as follows: |
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(a) The commissioners court may execute a tax abatement |
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agreement with the owner of taxable real property located in a |
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reinvestment zone designated under this subchapter or with the |
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owner of tangible personal property located on real property in a |
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reinvestment zone to exempt from taxation all or a portion of the |
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value of the real property, all or a portion of the value of the |
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tangible personal property located on the real property, or all or a |
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portion of the value of both[.
The court may execute a tax
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abatement agreement with the owner of a leasehold interest in
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tax-exempt real property or leasehold interests or improvements on
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tax-exempt real property that is located in a reinvestment zone
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designated under this subchapter to exempt a portion of the value of
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tangible personal property or leasehold interests or improvements
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on tax-exempt real property located on the real property. The
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execution, duration, and other terms of an agreement made under
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this section are governed by the provisions of Sections 312.204,
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312.205, and 312.211 applicable to a municipality. Section
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312.2041 applies to an agreement made by a county under this section
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in the same manner as it applies to an agreement made by a
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municipality under Section 312.204 or 312.211]. |
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(a-1) The commissioners court may execute a tax abatement |
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agreement with the owner of a leasehold interest in tax-exempt real |
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property located in a reinvestment zone designated under this |
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subchapter to exempt all or a portion of the value of the leasehold |
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interest in the real property. The court may execute a tax |
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abatement agreement with the owner of tangible personal property or |
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an improvement located on tax-exempt real property that is located |
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in a designated reinvestment zone to exempt all or a portion of the |
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value of the tangible personal property or improvement located on |
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the real property. |
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(a-2) The execution, duration, and other terms of an |
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agreement entered into under this section are governed by the |
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provisions of Sections 312.204, 312.205, and 312.211 applicable to |
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a municipality. Section 312.2041 applies to an agreement entered |
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into under this section in the same manner as that section applies |
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to an agreement entered into under Section 312.204 or 312.211. |
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(a-3) The commissioners court may execute a tax abatement |
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agreement with a lessee of taxable real property located in a |
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reinvestment zone designated under this subchapter to exempt from |
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taxation all or a portion of the value of the fixtures, |
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improvements, or other real property owned by the lessee and |
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located on the property that is subject to the lease, all or a |
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portion of the value of tangible personal property owned by the |
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lessee and located on the real property that is the subject of the |
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lease, or all or a portion of the value of both the fixtures, |
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improvements, or other real property and the tangible personal |
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property described by this subsection. |
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SECTION 4. Section 312.007, Tax Code, as added by this Act, |
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is intended to clarify rather than change existing law. |
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SECTION 5. An ad valorem tax abatement agreement that was |
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executed before the effective date of this Act by the commissioners |
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court of a county and an owner of taxable real property or tangible |
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personal property or an owner of a leasehold interest in tax-exempt |
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real property, under Section 312.402, Tax Code, as that section |
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existed before the effective date of this Act, that provides for an |
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exemption from taxation of all or a portion of the value of real |
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property, tangible personal property, or both, or of all or a |
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portion of the value of a leasehold interest in tax-exempt real |
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property, that is not invalid for a reason other than an |
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inconsistency with Section 312.402, Tax Code, as that section |
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existed before the effective date of this Act, and that is |
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consistent with Section 312.402, Tax Code, as amended by this Act, |
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is ratified and validated as of the date the agreement was executed. |
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SECTION 6. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 3896 was passed by the House on May |
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12, 2009, by the following vote: Yeas 144, Nays 4, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 3896 on May 29, 2009, by the following vote: Yeas 141, Nays 0, |
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2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 3896 was passed by the Senate, with |
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amendments, on May 25, 2009, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |