| TO: | Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means |
| FROM: | John S O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3275 by Coleman (relating to the operation and governance of tax increment financing reinvestment zones.), Committee Report 1st House, Substituted |
The bill would amend Chapter 311 of the Tax Code to provide that for a taxing unit (other than a municipality or county that created a reinvestment zone) that levies taxes on real property in a reinvestment zone to appoint a member on the reinvestment zone's board of directors, the taxing unit must approve the payment of all or part of the tax increment produced by the unit into the tax increment fund for the zone. The bill would provide that certain eligibility requirements for board members do not apply to an individual appointed by certain conservation and reclamation districts with a jurisdiction which covers four counties.
The bill provides for a county that designates a zone to determine the portion of the tax increment that is required to be paid into the tax increment fund and that a municipality or county can make such a designation in an ordinance or an order, rather than only in an ordinance. The bill would modify the due date of the reinvestment zone status report that a municipality or county must send to each taxing unit in the zone, from on or before the 90th day to on or before the 150th day following the end of the fiscal year.
The bill would modify the board of directors of reinvestment zones, the designation process of tax increments into a tax increment fund, and the due date of reports regarding zones, but would not change taxable values, tax rates or any other variable directly affecting property tax revenues and, consequently, would not create a fiscal impact to the state or units of local government.
The bill would take effect September 1, 2011.
| Source Agencies: | 304 Comptroller of Public Accounts, 701 Central Education Agency
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| LBB Staff: | JOB, KK, SD, SJS, JGM, TP, JSp
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