| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to a credit against the ad valorem taxes imposed by certain |
|
|
taxing units on commercial or industrial real property based on the |
|
|
cost of constructing a building on the property. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Chapter 31, Tax Code, is amended by adding |
|
|
Section 31.038 to read as follows: |
|
|
Sec. 31.038. TAX CREDIT FOR COSTS OF CONSTRUCTING BUILDING |
|
|
TO BE USED FOR COMMERCIAL OR INDUSTRIAL PURPOSES. (a) This section |
|
|
does not apply to taxes imposed by a school district. |
|
|
(b) An owner of real property who contracts to have a |
|
|
building constructed on the property that is to be used for |
|
|
commercial or industrial purposes is entitled to a credit against |
|
|
the taxes imposed on the property by a taxing unit. |
|
|
(c) The amount of the credit under this section to which a |
|
|
property owner is entitled for a tax year is equal to the lesser of: |
|
|
(1) the amount of taxes that would have been imposed on |
|
|
the property by the taxing unit if the property owner were not |
|
|
entitled to the credit; or |
|
|
(2) the amount computed by multiplying the total |
|
|
amount of the costs the property owner has contracted to pay to have |
|
|
the building constructed by the product of 0.15 and a fraction the |
|
|
numerator of which is the number of months the building is under |
|
|
active construction during that tax year and the denominator of |
|
|
which is 12. |
|
|
(d) A property owner may not receive a credit under this |
|
|
section against the taxes imposed on property by a taxing unit for |
|
|
more than three tax years, regardless of whether the construction |
|
|
continues for a longer period. |
|
|
(e) To receive a credit under this section, a property owner |
|
|
must file an application with the chief appraiser of the appraisal |
|
|
district in which the property is located. The application must |
|
|
include: |
|
|
(1) a copy of each contract the property owner has |
|
|
entered into to have a building constructed on the property that is |
|
|
to be used for commercial or industrial purposes; and |
|
|
(2) an estimate of the period in which the building is |
|
|
projected to be under active construction. |
|
|
(f) The chief appraiser shall forward a copy of the |
|
|
application to the assessor for each taxing unit. The assessors for |
|
|
the taxing units shall consult with one another as necessary to |
|
|
compute the amount of the credit to be granted by each taxing unit. |
|
|
(g) A credit provided by this section, once allowed, need |
|
|
not be claimed in subsequent years and applies to the property |
|
|
regardless of any subsequent change in ownership of the property, |
|
|
subject to the limitation provided by Subsection (d). |
|
|
(h) A property owner who receives a credit under this |
|
|
section shall notify the appraisal office in writing when the |
|
|
construction of the building is completed. |
|
|
SECTION 2. This Act applies only to ad valorem taxes imposed |
|
|
for a tax year beginning on or after the effective date of this Act. |
|
|
SECTION 3. This Act takes effect January 1, 2012, but only |
|
|
if the constitutional amendment proposed by the 82nd Legislature, |
|
|
Regular Session, 2011, authorizing the legislature to provide for a |
|
|
credit against the ad valorem taxes imposed by certain taxing units |
|
|
on commercial or industrial real property based on the cost of |
|
|
constructing a building on the property is approved by the voters. |
|
|
If that amendment is not approved by the voters, this Act has no |
|
|
effect. |