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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas Economic Development Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 313.022(b), Tax Code, is amended to read |
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as follows: |
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(b) For purposes of determining the required minimum amount |
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of a qualified investment under Section 313.021(2)(A)(iv)(a), and |
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the base [minimum] amount of a limitation on appraised value under |
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Section 313.027(b), school districts to which this subchapter |
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applies are categorized according to the taxable value of property |
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in the district for the preceding tax year determined under |
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Subchapter M, Chapter 403, Government Code, as follows: |
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| CATEGORY |
TAXABLE VALUE OF PROPERTY |
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| II |
$1 billion or more but less than $10 billion |
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| III |
$500 million or more but less than $1 billion |
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| IV |
$100 million or more but less than $500 million |
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SECTION 2. Section 313.027, Tax Code, is amended by |
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amending Subsections (a), (b), (c), (h), and (i) and adding |
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Subsection (j) to read as follows: |
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(a) If the person's application is approved by the governing |
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body of the school district, for each of the first eight tax years |
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that begin after the applicable qualifying time period, the |
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appraised value for school district maintenance and operations ad |
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valorem tax purposes of the person's qualified property as |
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described in the agreement between the person and the district |
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entered into under this section in the school district may not |
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exceed the lesser of: |
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(1) the market value of the property; or |
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(2) subject to Subsections [Subsection] (b) and (c), |
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the amount agreed to by the governing body of the school district. |
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(b) The amount agreed to by the governing body of a school |
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district under Subsection (a)(2) must be based on an amount in |
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accordance with the following, according to the category |
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established by Section 313.022 to which the school district |
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belongs: |
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CATEGORY |
BASE [MINIMUM] AMOUNT OF LIMITATION |
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(c) The amount of the appraised value of the property |
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established in an agreement may not be less than: |
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(1) for property used for a purpose described by |
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Section 313.024(b)(1), (2), (3), (4), (6), (7), or (8), the sum of: |
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(A) the applicable amount listed in Subsection |
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(b); and |
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(B) the product of 0.2 and the difference between |
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the market value of the property as annually determined by the chief |
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appraiser and the applicable amount listed in Subsection (b); and |
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(2) for property used for a purpose described by |
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Section 313.024(b)(5), the sum of: |
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(A) the applicable amount listed in Subsection |
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(b); and |
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(B) the product of 0.5 and the difference between |
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the market value of the property as annually determined by the chief |
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appraiser and the applicable amount listed in Subsection (b). [The
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limitation amounts listed in Subsection (b) are minimum amounts. A
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school district, regardless of category, may agree to a greater
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amount than those amounts.] |
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(h) At any time before the applicant spends an amount that |
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is considered to be a qualified investment, the governing body of |
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the school district and the applicant may amend the agreement to |
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defer the date on which the qualifying time period for the project |
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is to commence. The commencement of the qualifying time period may |
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not be deferred to a date later than the second anniversary of the |
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date the qualifying time period was originally scheduled to end. |
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[The agreement between the governing body of the school district
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and the applicant may provide for a deferral of the date on which
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the qualifying time period for the project is to commence or,
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subsequent to the date the agreement is entered into, be amended to
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provide for such a deferral.] This subsection may not be construed |
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to permit a qualifying time period that has commenced to continue |
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for more than the number of years applicable to the project under |
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Section 313.021(4). Any amount the applicant spends before the |
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date the qualifying time period commences may not be considered to |
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be a qualified investment. |
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(i) A person and the school district may not enter into an |
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agreement if in conjunction with the agreement any payments or |
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other benefits are to be provided by or on behalf of the person in |
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recognition or anticipation of, or in consideration for, the |
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district entering into the agreement, other than payments or |
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benefits authorized under Subsection (f)(1) or (2) [under which the
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person agrees to provide supplemental payments to a school district
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in an amount that exceeds an amount equal to $100 per student per
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year in average daily attendance, as defined by Section 42.005,
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Education Code, or for a period that exceeds the period beginning
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with the period described by Section 313.021(4) and ending with the
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period described by Section 313.104(2)(B) of this code.
This limit
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does not apply to amounts described by Subsection (f)(1) or (2) of
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this section]. |
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(j) A school district may not enter into an agreement or an |
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amendment to an agreement under this section without the prior |
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approval of the comptroller. |
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SECTION 3. Section 313.052, Tax Code, is amended to read as |
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follows: |
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Sec. 313.052. CATEGORIZATION OF SCHOOL DISTRICTS. For |
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purposes of determining the required minimum amount of a qualified |
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investment under Section 313.021(2)(A)(iv)(a) and the base |
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[minimum] amount of a limitation on appraised value under this |
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subchapter, school districts to which this subchapter applies are |
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categorized according to the taxable value of industrial property |
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in the district for the preceding tax year determined under |
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Subchapter M, Chapter 403, Government Code, as follows: |
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CATEGORY |
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TAXABLE VALUE OF INDUSTRIAL PROPERTY |
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II |
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$90 million or more but less than $200 million |
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III |
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$1 million or more but less than $90 million |
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IV |
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$100,000 or more but less than $1 million |
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SECTION 4. Section 313.054, Tax Code, is amended to read as |
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follows: |
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Sec. 313.054. LIMITATION ON APPRAISED VALUE. (a) For a |
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school district to which this subchapter applies, the amount agreed |
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to by the governing body of the district under Section |
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313.027(a)(2) must be based on an amount in accordance with the |
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following, according to the category established by Section 313.052 |
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to which the school district belongs: |
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CATEGORY |
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BASE [MINIMUM] AMOUNT OF LIMITATION |
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(b) The amount of the appraised value of the property |
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established in an agreement may not be less than: |
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(1) for property used for a purpose described by |
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Section 313.024(b)(1), (2), (3), (4), (6), (7), or (8), the sum of: |
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(A) the applicable amount listed in Subsection |
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(a); and |
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(B) the product of 0.2 and the difference between |
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the market value of the property as annually determined by the chief |
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appraiser and the applicable amount listed in Subsection (a); and |
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(2) for property used for a purpose described by |
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Section 313.024(b)(5), the sum of: |
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(A) the applicable amount listed in Subsection |
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(a); and |
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(B) the product of 0.5 and the difference between |
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the market value of the property as annually determined by the chief |
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appraiser and the applicable amount listed in Subsection (a). [The
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limitation amounts listed in Subsection (a) are minimum amounts. A
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school district, regardless of category, may agree to a greater
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amount than those amounts.] |
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SECTION 5. Section 42.2515, Education Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) Not later than December 1 of each year, the |
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commissioner of education shall submit to the comptroller an |
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estimate of the total amount of additional state aid to which a |
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school district is entitled under this section for the school year |
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beginning in that year. |
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SECTION 6. Section 403.302(d), Government Code, as amended |
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by Chapters 1186 (H.B. 3676) and 1328 (H.B. 3646), Acts of the 81st |
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Legislature, Regular Session, 2009, is reenacted to read as |
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follows: |
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(d) For the purposes of this section, "taxable value" means |
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the market value of all taxable property less: |
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(1) the total dollar amount of any residence homestead |
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exemptions lawfully granted under Section 11.13(b) or (c), Tax |
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Code, in the year that is the subject of the study for each school |
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district; |
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(2) one-half of the total dollar amount of any |
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residence homestead exemptions granted under Section 11.13(n), Tax |
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Code, in the year that is the subject of the study for each school |
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district; |
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(3) the total dollar amount of any exemptions granted |
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before May 31, 1993, within a reinvestment zone under agreements |
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authorized by Chapter 312, Tax Code; |
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(4) subject to Subsection (e), the total dollar amount |
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of any captured appraised value of property that: |
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(A) is within a reinvestment zone created on or |
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before May 31, 1999, or is proposed to be included within the |
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boundaries of a reinvestment zone as the boundaries of the zone and |
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the proposed portion of tax increment paid into the tax increment |
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fund by a school district are described in a written notification |
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provided by the municipality or the board of directors of the zone |
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to the governing bodies of the other taxing units in the manner |
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provided by Section 311.003(e), Tax Code, before May 31, 1999, and |
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within the boundaries of the zone as those boundaries existed on |
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September 1, 1999, including subsequent improvements to the |
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property regardless of when made; |
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(B) generates taxes paid into a tax increment |
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fund created under Chapter 311, Tax Code, under a reinvestment zone |
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financing plan approved under Section 311.011(d), Tax Code, on or |
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before September 1, 1999; and |
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(C) is eligible for tax increment financing under |
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Chapter 311, Tax Code; |
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(5) the total dollar amount of any captured appraised |
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value of property that: |
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(A) is within a reinvestment zone: |
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(i) created on or before December 31, 2008, |
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by a municipality with a population of less than 18,000; and |
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(ii) the project plan for which includes |
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the alteration, remodeling, repair, or reconstruction of a |
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structure that is included on the National Register of Historic |
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Places and requires that a portion of the tax increment of the zone |
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be used for the improvement or construction of related facilities |
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or for affordable housing; |
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(B) generates school district taxes that are paid |
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into a tax increment fund created under Chapter 311, Tax Code; and |
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(C) is eligible for tax increment financing under |
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Chapter 311, Tax Code; |
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(6) the total dollar amount of any exemptions granted |
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under Section 11.251 or 11.253, Tax Code; |
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(7) the difference between the comptroller's estimate |
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of the market value and the productivity value of land that |
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qualifies for appraisal on the basis of its productive capacity, |
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except that the productivity value estimated by the comptroller may |
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not exceed the fair market value of the land; |
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(8) the portion of the appraised value of residence |
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homesteads of individuals who receive a tax limitation under |
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Section 11.26, Tax Code, on which school district taxes are not |
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imposed in the year that is the subject of the study, calculated as |
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if the residence homesteads were appraised at the full value |
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required by law; |
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(9) a portion of the market value of property not |
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otherwise fully taxable by the district at market value because of: |
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(A) action required by statute or the |
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constitution of this state that, if the tax rate adopted by the |
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district is applied to it, produces an amount equal to the |
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difference between the tax that the district would have imposed on |
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the property if the property were fully taxable at market value and |
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the tax that the district is actually authorized to impose on the |
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property, if this subsection does not otherwise require that |
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portion to be deducted; or |
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(B) action taken by the district under Subchapter |
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B or C, Chapter 313, Tax Code, before the expiration of the |
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subchapter; |
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(10) the market value of all tangible personal |
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property, other than manufactured homes, owned by a family or |
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individual and not held or used for the production of income; |
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(11) the appraised value of property the collection of |
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delinquent taxes on which is deferred under Section 33.06, Tax |
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Code; |
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(12) the portion of the appraised value of property |
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the collection of delinquent taxes on which is deferred under |
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Section 33.065, Tax Code; and |
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(13) the amount by which the market value of a |
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residence homestead to which Section 23.23, Tax Code, applies |
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exceeds the appraised value of that property as calculated under |
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that section. |
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SECTION 7. Section 403.302(m), Government Code, as added by |
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Chapter 1186 (H.B. 3676), Acts of the 81st Legislature, Regular |
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Session, 2009, is amended to conform to Section 80, Chapter 1328 |
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(H.B. 3646), Acts of the 81st Legislature, Regular Session, 2009, |
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to read as follows: |
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(m) Subsection (d)(9) [(d)(10)] does not apply to property |
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that was the subject of an application under Subchapter B or C, |
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Chapter 313, Tax Code, made after May 1, 2009, that the comptroller |
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recommended should be disapproved. |
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SECTION 8. Section 403.302, Government Code, is amended by |
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adding Subsection (p) to read as follows: |
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(p) Notwithstanding Subsection (d)(9), if the estimated |
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statewide levy loss exceeds $___ million in any year, the |
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comptroller shall reduce the amount of the deduction under |
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Subsection (d)(9) from the market value of the taxable property in |
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each school district for that year based on the proportion that the |
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amount of the deduction under that subsection for each school |
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district bears to the estimated statewide levy loss so that the |
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estimated statewide levy loss does not exceed $___ million in that |
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year. For purposes of this subsection, "estimated statewide levy |
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loss" means the amount computed by: |
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(1) multiplying the amount deducted under Subsection |
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(d)(9) for each school district in this state for that year by the |
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quotient of the adopted tax rate of the district for that year |
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divided by 100; |
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(2) adding the amounts computed under Subdivision (1) |
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for all of the school districts in this state; and |
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(3) adding the amounts estimated by the commissioner |
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of education and submitted to the comptroller under Section |
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42.2515(a-1), Education Code, for all of the school districts in |
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this state for that year to the amount computed under Subdivision |
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(2). |
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SECTION 9. Chapter 313, Tax Code, as amended by this Act, |
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applies only to an agreement entered into under that chapter on or |
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after the effective date of this Act. An agreement entered into |
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under that chapter before the effective date of this Act is governed |
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by the law in effect on the date the agreement was entered into, and |
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the former law is continued in effect for that purpose. |
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SECTION 10. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2011. |