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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 enter into an agreement with an owner of real |
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property in or adjacent to an area in the municipality that has been |
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approved for funding under certain revitalization or redevelopment |
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programs to prohibit ad valorem tax increases on the owner's |
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property 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 TAXES ON REAL PROPERTY IN |
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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 call an election in the municipality to permit |
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the voters of the municipality to determine whether to authorize |
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the governing body to enter into an agreement with an owner of real |
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property in or adjacent to an area in the municipality that has been |
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approved for funding under the programs administered by the |
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Department of Agriculture as described by Section 1-o, Article |
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VIII, Texas Constitution, under which the parties agree that the ad |
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valorem taxes imposed by any political subdivision on the owner's |
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real property may not be increased for the first five tax years |
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after the tax year in which the agreement is entered into, subject |
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to the terms and conditions provided by the agreement. |
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(c) If the authority to limit tax increases under this |
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section is approved by the voters and the governing body of the |
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municipality enters into an agreement to limit tax increases under |
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this section, the tax officials shall appraise the property to |
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which the limitation applies and calculate taxes as on other |
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property, but if the tax so calculated exceeds the limitation, the |
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tax imposed is the amount of the tax as limited by this section, |
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except as provided by Subsections (f) and (g). |
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(d) An agreement to limit tax increases under this section |
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must be entered into before December 31 of the tax year in which the |
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election was held. |
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(e) A taxing unit may not increase the total annual amount |
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of ad valorem taxes the taxing unit imposes on the property above |
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the amount of the taxes the taxing unit imposed on the property in |
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the tax year in which the governing body of the municipality entered |
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into an agreement to limit tax increases under this section. |
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(f) Subject to Subsection (g), an agreement to limit 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 agreement was entered into; 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 agreement was entered into ceases to own |
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the property. |
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(g) If property subject to an agreement to limit tax |
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increases under this section is owned by two or more persons, the |
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limitation expires on January 1 of the first tax year following the |
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year in 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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(h) Notwithstanding Subsection (a), if the population of a |
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municipality to which this section applies when the municipality |
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enters into an agreement to limit taxes under this section |
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subsequently increases to 10,000 or more, the validity of the |
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agreement is not affected by that change in population, and the |
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agreement does not expire because of that change. |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 3. 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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