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A BILL TO BE ENTITLED
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AN ACT
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relating to the term of a reinvestment zone and to the assessment |
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and payment of tax increments under the Tax Increment Financing |
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Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (a), Section 311.012, Tax Code, is |
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amended to read as follows: |
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(a) The amount of a taxing unit's tax increment for a year is |
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the amount of property taxes assessed and levied [and collected] by |
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the unit for that year on the captured appraised value of real |
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property taxable by the unit and located in a reinvestment zone. |
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SECTION 2. Subsections (c) and (i), Section 311.013, Tax |
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Code, are amended to read as follows: |
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(c) Notwithstanding any termination of the reinvestment |
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zone under Section 311.017(a), a [A] taxing unit shall make a |
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payment required by Subsection (b) not later than the 90th day after |
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the delinquency date for the unit's property taxes. A delinquent |
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payment incurs a penalty of five percent of the amount delinquent |
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and accrues interest at an annual rate of 10 percent. |
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(i) Notwithstanding Subsection (c) and Section 311.012(a), |
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a taxing unit is not required to pay into a tax increment fund the |
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applicable portion of a tax increment attributable to delinquent |
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taxes until those taxes are collected. |
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SECTION 3. Section 311.017, Tax Code, is amended by amending |
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Subsection (a) and adding Subsection (a-1) to read as follows: |
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(a) A reinvestment zone terminates on the earlier of: |
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(1) the termination date designated in the ordinance |
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or order, as applicable, creating the zone or an earlier or later |
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termination date designated by an ordinance or order adopted |
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subsequent to the ordinance or order creating the zone; or |
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(2) the date on which all project costs, tax increment |
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bonds and interest on those bonds, and other obligations have been |
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paid in full. |
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(a-1) Notwithstanding the designation of a later |
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termination date under Subsection (a), a taxing unit that taxes |
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real property located in the reinvestment zone, other than the |
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municipality or county that created the zone, is not required to pay |
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any of its tax increment into the tax increment fund for the zone |
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after the termination date designated in the ordinance or order |
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creating the zone unless the governing body of the taxing unit |
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enters into an agreement to do so with the governing body of the |
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municipality or county that created the zone. |
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SECTION 4. (a) The legislature validates and confirms all |
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governmental acts and proceedings of a municipality or county that |
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were taken before the effective date of this Act and relate to or |
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are associated with the extension of the term of a reinvestment zone |
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created by the municipality or county under Chapter 311, Tax Code, |
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as of the dates on which they occurred. The acts and proceedings |
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may not be held invalid because they were not in accordance with |
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Chapter 311, Tax Code, or other law. |
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(b) Subsection (a) of this section does not apply to any |
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matter that on the effective date of this Act: |
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(1) is involved in litigation if the litigation |
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ultimately results in the matter being held invalid by a final |
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judgment of a court; or |
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(2) has been held invalid by a final judgment of a |
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court. |
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SECTION 5. This Act applies only to a taxing unit's tax |
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increment for a period occurring on or after the effective date of |
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this Act. A taxing unit's tax increment for a period occurring |
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before the effective date of this Act is governed by the law in |
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effect for such period, and the former law is continued in effect |
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for that purpose. |
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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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