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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the commissioners court of a county to |
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enter into an ad valorem tax abatement agreement. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 312.402, 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 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 fixtures, improvements, or |
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other real property owned by the lessee and located on the property |
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that is the subject of the lease, all or a portion of the value of |
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tangible personal property owned by the lessee and located on the |
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real property that is the subject of the lease, or all or a portion |
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of the value of both. |
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(a-2) 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-3) 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, except that although an agreement may not exceed 10 |
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years in duration, the agreement may include a provision that |
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defers the effective date of the agreement, or the date that the |
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exemption takes effect, to a date agreed to by the commissioners |
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court and the owner or lessee of the property that is the subject of |
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the agreement. 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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SECTION 2. 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 or lessee of taxable real property or |
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an owner of tangible personal property, under Section 312.402, Tax |
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Code, as that section existed before the effective date of this Act, |
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that provides for an exemption from taxation of all or a portion of |
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the value of real property, tangible personal property, or both, |
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that is not invalid for a reason other than an inconsistency with |
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Section 312.402, Tax Code, as that section existed before the |
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effective date of this Act, and that is consistent with Section |
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312.402, Tax Code, as amended by this Act, is ratified and validated |
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as of the date the agreement was executed. |
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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. |