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INTRODUCED
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HOUSE COMMITTEE
SUBSTITUTE
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SECTION 1. Section 313.004,
Tax Code, is amended to read as follows:
No
equivalent provision.
No
equivalent provision.
Sec. 313.004. LEGISLATIVE
INTENT. It is the intent of the legislature in enacting this chapter that:
(1) economic development
decisions involving school district taxes should occur at the local
level with oversight by the state and be consistent with
identifiable statewide economic development goals;
(2) this chapter should not
be construed or interpreted to allow:
(A) property owners to pool
investments to create sufficiently large investments to qualify for an ad
valorem tax benefit or financial benefit
provided by this chapter;
(B) an applicant for an ad
valorem tax benefit or financial benefit
provided by this chapter to assert that jobs will be eliminated if certain
investments are not made if the assertion is not true; or
(C) an entity not subject
to the tax imposed by Chapter 171 by virtue
of its business structure [a sole proprietorship,
partnership, or limited liability partnership] to receive an ad valorem
tax benefit or financial benefit provided by this chapter; and
(3) in implementing this
chapter, school districts and the
comptroller should[:
(A)] strictly
interpret the criteria and selection guidelines provided by this chapter [;
and
(B) approve only those applications for an ad valorem tax benefit or
financial benefit provided by this chapter that:
(i) enhance the local community;
(ii) improve the local public education system;
(iii) create high-paying jobs; and
(iv) advance the economic development goals of this state as
identified by the Texas Strategic Economic Development Planning Commission].
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SECTION 1. Sections 313.002,
313.003, 313.004, and 313.007, Tax Code, are amended to read as follows:
Sec. 313.002. FINDINGS. The
legislature finds that:
(1) many states have enacted
aggressive economic development laws designed to attract large employers,
create jobs, and strengthen their economies;
(2) given Texas'
relatively high ad valorem taxes, it is difficult for the state to compete
for new capital projects without temporarily limiting ad valorem taxes
imposed on new capital investments [the State of Texas has slipped
in its national ranking each year between 1993 and 2000 in terms of
attracting major new manufacturing facilities to this state];
(3) a significant portion of
the Texas economy continues to be based in [the] manufacturing and
other capital-intensive industries [industry], and their
[the] continued growth and overall health serve [of the
manufacturing sector serves] the Texas economy well;
(4) without a vibrant,
strong manufacturing sector, other sectors of the economy, especially the
state's service sector, will also suffer adverse consequences; and
(5) the current ad
valorem [property] tax system of this state does not favor
capital-intensive businesses such as manufacturers.
Sec. 313.003. PURPOSES. The
purposes of this chapter are to:
(1) encourage large-scale
capital investments in this state[, especially in school districts that
have an ad valorem tax base that is less than the statewide average ad
valorem tax base of school districts in this state];
(2) create new, high-paying
jobs in this state;
(3) attract to this state [new,]
large-scale businesses that are exploring opportunities to locate in other
states or other countries;
(4) enable state and
local government officials and economic development professionals to
compete with other states by authorizing economic development incentives
that are comparable to [meet or exceed] incentives being
offered to prospective employers by other states and to provide state
and local officials with an effective means to attract large-scale
investment;
(5) strengthen and improve
the overall performance of the economy of this state;
(6) expand and enlarge the
ad valorem [property] tax base of this state; and
(7) enhance this state's
economic development efforts by providing state and local officials
[school districts] with an effective [local] economic
development tool [option].
Sec. 313.004. LEGISLATIVE
INTENT. It is the intent of the legislature in enacting this chapter that:
(1) economic development
decisions involving school district taxes should occur at the local
level with oversight by the state and should be consistent
with identifiable statewide economic development goals;
(2) this chapter should not
be construed or interpreted to allow:
(A) property owners to pool
investments to create sufficiently large investments to qualify for an ad
valorem tax benefit [or financial benefit]
provided by this chapter;
(B) an applicant for an ad
valorem tax benefit [or financial benefit]
provided by this chapter to assert that jobs will be eliminated if certain
investments are not made if the assertion is not true; or
(C) an entity not subject
to the tax imposed by Chapter 171 [a sole proprietorship,
partnership, or limited liability partnership] to receive an ad valorem
tax benefit [or financial benefit] provided by this chapter; [and]
(3) in implementing this
chapter, school districts should:
(A) strictly interpret the
criteria and selection guidelines provided by this chapter; and
(B)
approve only those applications for an ad valorem tax benefit [or
financial benefit] provided by this chapter that:
(i)
enhance the local community;
(ii)
improve the local public education system;
(iii)
create high-paying jobs; and
(iv)
advance the economic development goals of this state; and
(4) in implementing this chapter, the comptroller should:
(A) strictly interpret the criteria and selection guidelines
provided by this chapter; and
(B) issue certificates for limitations on appraised value only for
those applications for an ad valorem tax benefit provided by this chapter
that:
(i) create high-paying jobs;
(ii) provide a net benefit to the state over the long term; and
(iii) advance the economic development goals of this state [as identified by the Texas Strategic Economic
Development Planning Commission].
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SECTION 2. Section 313.007,
Tax Code, is amended to read as follows:
Sec. 313.007. EXPIRATION.
Subchapters B, C, and D expire
December 31, 2020 [2014].
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SECTION 1 (Cont.)
Sec. 313.007. EXPIRATION.
Subchapters B and [,] C [,
and D] expire December 31, 2024
[2014].
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No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
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SECTION 2. Sections
313.021(1), (2), and (3), Tax Code, are amended to read as follows:
(1) "Qualified
investment" means:
(A) tangible personal
property that is first placed in service in this state during the
applicable qualifying time period that begins on or after January 1, 2002,
without regard to whether the property is affixed to or incorporated into
real property, and that is described as Section 1245 property by Section
1245(a), Internal Revenue Code of 1986;
(B) tangible personal
property that is first placed in service in this state during the
applicable qualifying time period that begins on or after January 1, 2002,
without regard to whether the property is affixed to or incorporated into
real property, and that is used in connection with the manufacturing,
processing, or fabrication in a cleanroom environment of a semiconductor product,
without regard to whether the property is actually located in the cleanroom
environment, including:
(i) integrated systems,
fixtures, and piping;
(ii) all property necessary
or adapted to reduce contamination or to control airflow, temperature, humidity,
chemical purity, or other environmental conditions or manufacturing
tolerances; and
(iii) production equipment
and machinery, moveable cleanroom partitions, and cleanroom lighting;
(C) tangible personal
property that is first placed in service in this state during the
applicable qualifying time period that begins on or after January 1, 2002,
without regard to whether the property is affixed to or incorporated into
real property, and that is used in connection with the operation of a
nuclear electric power generation facility, including:
(i) property, including
pressure vessels, pumps, turbines, generators, and condensers, used to
produce nuclear electric power; and
(ii) property and systems
necessary to control radioactive contamination;
(D) tangible personal
property that is first placed in service in this state during the
applicable qualifying time period that begins on or after January 1, 2002,
without regard to whether the property is affixed to or incorporated into
real property, and that is used in connection with operating an integrated
gasification combined cycle electric generation facility, including:
(i) property used to produce
electric power by means of a combined combustion turbine and steam turbine
application using synthetic gas or another product produced by the
gasification of coal or another carbon-based feedstock; or
(ii) property used in
handling materials to be used as feedstock for gasification or used in the
gasification process to produce synthetic gas or another carbon-based
feedstock for use in the production of electric power in the manner
described by Subparagraph (i);
(E) tangible personal
property that is first placed in service in this state during the
applicable qualifying time period that begins on or after January 1, 2010,
without regard to whether the property is affixed to or incorporated into
real property, and that is used in connection with operating an advanced
clean energy project, as defined by Section 382.003, Health and Safety
Code; [or]
(F) a building or a
permanent, nonremovable component of a building that is built or
constructed during the applicable qualifying time period that begins on or
after January 1, 2002, and that houses tangible personal property described
by Paragraph (A), (B), (C), (D), or (E); or
(G) an existing building
that, as part of a discrete project that increases the value and productive
capacity of an existing property, is expanded.
(2) "Qualified
property" means:
(A) land:
(i) that is located in an
area designated as a reinvestment zone under Chapter 311 or 312 or as an
enterprise zone under Chapter 2303, Government Code;
(ii) on which a person
proposes to construct a new building or erect or affix a new improvement
that does not exist before the date the person submits a complete
application [applies] for a limitation on appraised value under
this subchapter;
(iii) that is not subject to
a tax abatement agreement entered into by a school district under Chapter
312; and
(iv) on which, in connection
with the new building or new improvement described by Subparagraph (ii),
the owner or lessee of, or the holder of another possessory interest in,
the land proposes to:
(a) make a qualified
investment in an amount equal to at least the minimum amount required by
Section 313.023; and
(b) create at least 25 new
jobs;
(B) the new building or
other new improvement described by Paragraph (A)(ii); and
(C) tangible personal
property that:
(i) is not subject to a tax
abatement agreement entered into by a school district under Chapter 312;
and
(ii) except for new
equipment described in Section 151.318(q) or (q-1), is first placed in
service in the new building or in or on the new improvement described by
Paragraph (A)(ii), or on the land on which that new building or new
improvement is located, if the personal property is ancillary and necessary
to the business conducted in that new building or in or on that new
improvement.
(3) "Qualifying
job" means a permanent full-time job that:
(A) requires at least 1,600
hours of work a year;
(B) is not transferred from
one area in this state to another area in this state;
(C) is not created to
replace a previous employee;
(D) is covered by a group
health benefit plan that complies with the Patient Protection and
Affordable Care Act (Pub. L. No. 111-148) as amended by the Health Care and
Education Reconciliation Act of 2010 (Pub. L. No. 111-152) [for
which the business offers to pay at least 80 percent of the premiums or
other charges assessed for employee-only coverage under the plan, regardless
of whether an employee may voluntarily waive the coverage]; and
(E) pays at least 110
percent of[:
[(i) the county average
weekly wage for manufacturing jobs in the county where the job is located;
or
[(ii)] the county
average weekly wage for all jobs in the county where the job is located[,
if the property owner creates more than 1,000 jobs in that county].
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SECTION 3. Section 323.024,
Tax Code, is amended by amending Subsection (b) and adding Subsection
(e)(7) to read as follows:
(b) To be eligible for a
limitation on appraised value under this subchapter, the entity must use
the property in connection with:
(1) manufacturing;
(2) research and
development;
(3) a clean coal project, as
defined by Section 5.001, Water Code;
(4) an advanced clean energy
project, as defined by Section 382.003, Health and Safety Code;
(5) renewable energy
electric generation;
(6) electric power
generation using integrated gasification combined cycle technology;
(7) nuclear electric power
generation; [or]
(8) a computer center
primarily used in connection with one or more activities described by
Subdivisions (1) through (7) conducted by the entity; or
(9) a data center.
(e)(7) "Data center" means a facility composed of a single
building or a portion of a single building specifically constructed or
refurbished and actually used primarily to house servers and related
equipment and support staff for the processing, storage, and distribution
of data.
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SECTION 3. Sections
313.024(a), (b), and (d), Tax Code, are amended to read as follows:
(a)
This subchapter and Subchapter [Subchapters] C [and D]
apply only to property owned by an entity subject to the tax
imposed by [which] Chapter 171 [applies].
(b) To be eligible for a
limitation on appraised value under this subchapter, the entity must use
the property for [in connection with]:
(1) manufacturing;
(2) research and
development;
(3) a clean coal project, as
defined by Section 5.001, Water Code;
(4) an advanced clean energy
project, as defined by Section 382.003, Health and Safety Code;
(5) renewable energy
electric generation;
(6) electric power
generation using integrated gasification combined cycle technology;
(7) nuclear electric power
generation; [or]
(8) a computer center
primarily used in connection with one or more activities described by
Subdivisions (1) through (7) conducted by the entity; or
(9) a Texas priority project.
(d)
To be eligible for a limitation on appraised value under this subchapter, [at
least 80 percent of all] the new jobs created by the property owner under
this chapter must be qualifying jobs as defined by Section 313.021(3).
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No
equivalent provision.
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SECTION 4. Section
313.024(e), Tax Code, is amended by adding Subdivision (7) to read as
follows:
(7) "Texas priority
project" means a project on which the applicant has committed to
expend or allocate a qualified investment of more than $1 billion.
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SECTION 4. Section 313.025,
Tax Code, is amended by amending Subsections (b), (b-1), (c), (d), and
(f-1).
No
equivalent provision.
(b) The governing body of a
school district is not required to consider an application for a limitation
on appraised value that is filed with the governing body under Subsection
(a). If the governing body of the school district does elect to consider
an application, the governing body shall deliver an electronic copy or three paper
copies of the application to the comptroller and request that the
comptroller provide an economic impact
evaluation of the application to the school
district.
The [Except as
provided by Subsection (b-1), the] comptroller shall conduct or
contract with a third person to conduct the evaluation, which shall be
completed and provided to the governing body of the school district as soon
as practicable
, but not later than the
90th day after the date the comptroller receives the application.
The governing body shall
provide to the comptroller or a third person contracted by the
comptroller to conduct an economic impact evaluation any requested
information. A methodology to allow comparisons of economic impact for
different schedules of the addition of qualified investment or qualified
property may be developed as part of the economic impact evaluation. The
governing body shall provide a copy of the economic impact
evaluation to the applicant on request. The comptroller may charge the
applicant [and collect] a fee sufficient to cover the costs of
providing the economic impact evaluation. The governing body of a school
district shall approve or disapprove an application not later than the
150th [before the 151st] day after the date the application is
filed, unless the economic impact evaluation has not been received or an
extension is agreed to by the governing body and the applicant.
(b-1) The comptroller shall indicate on one copy of the
application the date the comptroller received the application and deliver
that copy to the Texas Education Agency. The Texas Education Agency
shall determine the effect that the applicant's proposal, if approved,
will have on the number or size of the school district's instructional
facilities[, as required to be included in the economic impact
evaluation by Section 313.026[(a)(9)], and submit a written report
containing the agency's determination to the school district [comptroller].
The governing body of the school district shall provide any requested
information to the Texas Education Agency. Not later than the 45th day
after the date the application indicates that
the comptroller received the application, the Texas Education Agency
shall make the required determination and submit the agency's written
report to the school district [comptroller]. [A third
person contracted by the comptroller to conduct an economic impact
evaluation of an application is not required to make a determination that
the Texas Education Agency is required to make and report to the
comptroller under this subsection.]
(c) In determining whether
to approve [grant] an application, the governing body of the
school district is entitled to request and receive assistance from:
(1) the comptroller;
(2) the Texas [Department
of] Economic Development and Tourism Office;
(3) the Texas Workforce
Investment Council; and
(4) the Texas Workforce
Commission.
(d) Not later than the 90th
[Before the 91st] day after the date the comptroller receives [the
copy of] the application, the comptroller shall
submit
[a recommendation] to the governing body of the school district a
recommendation as to whether the application should be approved or
disapproved, and, if applicable, a recommendation to waive or reduce the
new jobs requirement.
(f-1) Notwithstanding any
other provision of this chapter to the contrary, [including Section
313.003(2) or 313.004(3)(A) or (B)(iii),] the governing body of a
school district may reduce or waive the new jobs creation
requirement in Section 313.021(2)(A)(iv)(b) or 313.051(b) and approve an application if the comptroller:
(A) finds [governing body makes a finding]
that the jobs creation requirement exceeds the industry standard for the
number of employees reasonably necessary for the operation of the facility
of the property owner that is described in the application; and
(B) recommends:
(i) reducing the number
of new jobs required; or
(ii) waiving the new jobs
requirement.
No
equivalent provision.
No
equivalent provision.
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SECTION 5. Sections
313.025(a-1), (b), (b-1), (c), (d), (d-1), (e), (f-1), (g), and (i), Tax
Code, are amended to read as follows:
(a-1) Within seven days of
the receipt of each document, the school district shall submit to the
comptroller a copy of the application and the proposed agreement
between the applicant and the school district. If the applicant submits
an economic analysis of the proposed project [is submitted] to the
school district, the district shall submit a copy of the analysis to the
comptroller. In addition, the school district shall submit to the
comptroller any subsequent revision of or amendment to any of those
documents within seven days of its receipt. The comptroller shall publish
each document received from the school district under this subsection on
the comptroller's Internet website. If the school district maintains a
generally accessible Internet website, the district shall provide on its
website a link to the location of those documents posted on the
comptroller's website in compliance with this subsection. This subsection
does not require the comptroller to post information that is confidential
under Section 313.028.
(b) The governing body of a
school district is not required to consider an application for a limitation
on appraised value [that is filed with the governing body under
Subsection (a)]. If the governing body of the school district elects
[does elect] to consider an application, the governing body shall
deliver a copy [three copies] of the application to
the comptroller and request that the comptroller conduct [provide]
an economic impact evaluation of the investment
proposed by the application.
In addition, the governing body may request that the comptroller
submit a recommendation as to whether the new jobs creation requirement
should be reduced or waived and, if reduced, the number of new jobs that
should be required to be created. The [to the school
district. Except as provided by Subsection (b-1), the] comptroller
shall conduct or contract with a third person to conduct the economic
impact evaluation, which shall be completed and provided to the
governing body of the school district, along
with the comptroller's certificate or written explanation under Subsection
(d)(1) and recommendation under Subsection (d)(2), if requested,
as soon as practicable but not later than the 90th day after the date
the comptroller receives the application.
The governing body shall
provide to the comptroller or to a third person contracted by the
comptroller to conduct the economic impact evaluation any requested
information. A methodology to allow comparisons of economic impact for
different schedules of the addition of qualified investment or qualified
property may be developed as part of the economic impact evaluation. The
governing body shall provide a copy of the economic impact
evaluation to the applicant on request. The comptroller may charge the
applicant [and collect] a fee sufficient to cover the costs of
providing the economic impact evaluation. The governing body of a school
district shall approve or disapprove an application not later than the
150th [before the 151st] day after the date the application is
filed, unless the economic impact evaluation has not been received or an
extension is agreed to by the governing body and the applicant.
(b-1) The comptroller shall promptly deliver a [indicate
on one] copy of the application [the date the comptroller received
the application and deliver that copy] to the Texas Education Agency.
The Texas Education Agency shall determine the effect that the applicant's
proposal will have on the number or size of the school district's
instructional facilities [, as required to be included in the economic
impact evaluation by Section 313.026(a)(9),] and submit a written
report containing the agency's determination to the school district
[comptroller]. The governing body of the school district shall
provide any requested information to the Texas Education Agency. Not later
than the 45th day after the date the Texas
Education Agency receives [application
indicates that the comptroller received] the application, the
Texas Education Agency shall make the required determination and submit the
agency's written report to the governing body of the school district
[comptroller. A third person contracted by the comptroller to conduct
an economic impact evaluation of an application is not required to make a
determination that the Texas Education Agency is required to make and
report to the comptroller under this subsection].
(c) In determining whether
to approve [grant] an application, the governing body of the
school district is entitled to request and receive assistance from:
(1) the comptroller;
(2) the Texas [Department
of] Economic Development and Tourism Office;
(3) the Texas Workforce
Investment Council; and
(4) the Texas Workforce
Commission.
(d) Not later than the
90th [Before the 91st] day after the date the comptroller
receives the copy of the application, the comptroller shall:
(1) issue a certificate for a limitation on appraised value of the
property and provide the certificate to the governing body of the school
district or provide the governing body a written explanation of the
comptroller's decision not to issue a certificate; and
(2) if requested by the governing body of the school district, submit [a recommendation] to the governing
body a recommendation [of the school district] as to whether
the new jobs creation requirement should be reduced or waived and, if
reduced, the number of new jobs that should be required to be created [application
should be approved or disapproved].
(d-1)
The governing body of a school district may not approve an
application unless [that] the comptroller submits to the
governing body a certificate for a limitation on appraised value of the
property [has recommended should be disapproved only if:
[(1)
the governing body holds a public hearing the sole purpose of which is to
consider the application and the comptroller's recommendation; and
[(2)
at a subsequent meeting of the governing body held after the date of the
public hearing, at least two-thirds of the members of the governing body
vote to approve the application].
(e)
Before approving or disapproving an application under this subchapter that
the governing body of the school district elects to consider, the
governing body [of the school district] must make a written finding
as to each criterion listed in Section 313.026. The governing body shall
deliver a copy of those findings to the applicant.
(f-1) Notwithstanding any
other provision of this chapter [to the contrary, including Section
313.003(2) or 313.004(3)(A) or (B)(iii)], the governing body of a
school district may waive or reduce the new jobs creation
requirement in Section 313.021(2)(A)(iv)(b) or 313.051(b) only [and approve an application] if the comptroller
determines [governing body
makes a finding] that the jobs creation requirement exceeds the
industry standard for the number of employees reasonably necessary for the
operation of the facility of the property owner that is described in the
application and recommends waiving or reducing the requirement.
(g) The Texas [Department
of] Economic Development and Tourism Office or its successor may
recommend that a school district approve an application [grant a
person a limitation on appraised value] under this chapter. In
determining whether to approve [grant] an application, the
governing body of the school district shall consider any recommendation
made by the Texas [Department of] Economic Development and
Tourism Office or its successor.
(i) If the comptroller's
determination under Subsection (h) that the property does not meet the
requirements of Section 313.024 for eligibility for a limitation on
appraised value under this subchapter becomes final, the comptroller is not
required to provide an economic impact evaluation of the application or to
submit a certificate for a limitation on appraised value of the property
or a written explanation of the decision not to issue a certificate [recommendation
to the school district as to whether the application should be approved or
disapproved], and the governing body of the school district may not
grant the application.
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SECTION 5. Section 313.026,
Tax Code, is amended to read as follows:
Sec. 313.026. ECONOMIC
IMPACT EVALUATION. (a) The economic impact evaluation of the application
must include the following:
(1)
the recommendations of the comptroller;
(2) the name of the school
district;
(3) the name of the
applicant;
(4) a description of
[the general nature of] the applicant's proposed investment;
(5) the relationship between
the applicant's industry and the types of qualifying jobs to be created by
the applicant to the long-term economic growth plans of this state [as
described in the strategic plan for economic development submitted by the
Texas Strategic Economic Development Planning Commission under Section
481.033, Government Code, as that section existed before February 1, 1999];
(6) the amount [relative
level] of the applicant's investment per qualifying job to be created
by the applicant;
(7) the number of qualifying
jobs to be created by the applicant;
(8) the wages, salaries, and
benefits to be offered by the applicant to qualifying job holders;
(9) the ability of the
applicant to locate or relocate in another state or another region of this
state;
(10) the impact the project
will have on this state and individual local units of government, including:
(A) tax and other revenue
gains, direct or indirect, that would be realized during the qualifying
time period, the limitation period, and a period of time after the
limitation period considered appropriate by the comptroller; and
(B) economic effects of the
project, including the impact on jobs and income, during the qualifying
time period, the limitation period, and a period of time after the
limitation period considered appropriate by the comptroller;
(11) the economic condition
of the region of the state at the time the person's application is being
considered;
(12) [the number of new
facilities built or expanded in the region during the two years preceding
the date of the application that were eligible to apply for a limitation on
appraised value under this subchapter;
(13) the effect of the
applicant's proposal, if approved, on the number or size of the school
district's instructional facilities, as defined by Section 46.001,
Education Code;
(14)] the projected
market value of the qualified property of the applicant as determined by
the comptroller;
(13) [(15)]
the proposed limitation on appraised value for the qualified property of
the applicant;
(14) [(16)]
the projected dollar amount of the taxes that would be imposed on the
qualified property, for each year of the agreement, if the property does
not receive a limitation on appraised value with assumptions of the
projected appreciation or depreciation of the investment and projected tax
rates clearly stated;
(15) [(17)]
the projected dollar amount of the taxes that would be imposed on the
qualified property, for each tax year of the agreement, if the property
receives a limitation on appraised value with assumptions of the projected
appreciation or depreciation of the investment clearly stated;
(16) [(18)]
the projected effect on the Foundation School Program of payments to the
district for each year of the agreement;
(17) [(19)] the projected future tax credits if the applicant
also applies for school tax credits under Section 313.103; [and]
(18) [(20)]
the total amount of taxes projected to be lost or gained by the district
over the life of the agreement computed by subtracting the projected taxes
stated in Subdivision (15) [(17)] from the projected taxes
stated in Subdivision (14) [(16)]; and
(19) whether the jobs creation requirement exceeds
the industry standard for the number of employees reasonably necessary for
the operation of the facility described in the application.
(b) Except as provided by
Subsection (c), the [The] comptroller's recommendations shall be based on the criteria listed in
Subsections (a)(5)-(18) [(a)(5)-(20)] and on any other
information available to the comptroller, including information provided by
the governing body of the school district [under Section 313.025(b)].
(c) The comptroller may
not recommend approval of an application if
the comptroller determines that the net
present value of any projected additional state tax and fee revenue
generated as a direct or indirect result of the qualified investment over
the useful life of the qualified investment is not likely to exceed the net
present value of any projected increase in payments to the school district
under the Foundation School Program resulting from the approval of the
application [Expired].
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SECTION 6. Section 313.026,
Tax Code, is amended to read as follows:
Sec. 313.026. ECONOMIC
IMPACT EVALUATION. (a) The economic impact evaluation of the application
must include the following:
(1)
the determination [recommendations] of the comptroller as
to whether to issue a certificate for a limitation on appraised value of
the property and, if requested, the recommendation of the comptroller
regarding waiver or reduction of the new jobs creation requirement;
(2) the name of the school
district;
(3) the name of the
applicant;
(4) a description of
the [general nature of the] applicant's proposed investment, including the useful life of the investment;
(5) the relationship between
the applicant's industry and the types of qualifying jobs to be created by
the applicant to the long-term economic growth plans of this state [as
described in the strategic plan for economic development submitted by the
Texas Strategic Economic Development Planning Commission under Section
481.033, Government Code, as that section existed before February 1, 1999];
(6) the amount [relative
level] of the applicant's investment per qualifying job to be created
by the applicant;
(7) the number of qualifying
jobs to be created by the applicant;
(8) the wages, salaries, and
benefits to be offered by the applicant to qualifying job holders;
(9) the ability of the
applicant to locate or relocate in another state or another region of this
state;
(10) the fiscal impact the project will have on
this state and individual local units of government, including:
(A) tax and other revenue
gains, direct or indirect, that would be realized during the qualifying
time period, the limitation period, and a period of time after the
limitation period considered appropriate by the comptroller; and
(B) economic effects of the
project, including the impact on jobs and income, during the qualifying
time period, the limitation period, and a period of time after the
limitation period considered appropriate by the comptroller;
(11) the economic condition
of the region of the state at the time the person's application is being
considered;
(12) [the number of new
facilities built or expanded in the region during the two years preceding
the date of the application that were eligible to apply for a limitation on
appraised value under this subchapter;
[(13) the effect of the
applicant's proposal, if approved, on the number or size of the school
district's instructional facilities, as defined by Section 46.001,
Education Code;
[(14)] the projected
market value of the qualified property of the applicant as determined by
the comptroller;
(13) [(15)]
the proposed limitation on appraised value for the qualified property of
the applicant;
(14) [(16)]
the projected dollar amount of the taxes that would be imposed on the
qualified property, for each year of the agreement, if the property does
not receive a limitation on appraised value with assumptions of the
projected appreciation or depreciation of the investment and projected tax
rates clearly stated;
(15) [(17)]
the projected dollar amount of the taxes that would be imposed on the
qualified property, for each tax year of the agreement, if the property
receives a limitation on appraised value with assumptions of the projected
appreciation or depreciation of the investment clearly stated;
(16) [(18)]
the projected effect on the Foundation School Program of payments to the
district for each year of the agreement,
as determined by the school district and verified by the Texas Education
Agency;
(17) [(19) the projected future tax credits if the applicant
also applies for school tax credits under Section 313.103; and
[(20)] the total
amount of taxes projected to be lost or gained by the district over the
life of the agreement computed by subtracting the projected taxes stated in
Subdivision (15) [(17)] from the projected taxes stated in
Subdivision (14); and
(18) the industry
standard for the number of employees reasonably necessary for the operation
of the facility described in the application, if
the school district has requested a recommendation under Section 313.025(b) [(16)].
(b) Except as provided by
Subsections (c) and (d), the [The]
comptroller's determination and
recommendation described by Subsection (a)(1) [recommendations] shall be based on
the criteria listed in Subsections (a)(5)-(17) or (a)(5)-(18), as
appropriate, [(a)(5)-(20)] and on any other information
available to the comptroller, including information provided by the
governing body of the school district [under Section 313.025(b)].
(c) The comptroller may
not issue a certificate for a limitation on
appraised value under this chapter for property described in an application
unless the comptroller determines that:
(1) the project proposed by the applicant is reasonably likely to
generate, before the 25th anniversary of the beginning of the limitation
period, tax revenue, including state tax revenue, school district
maintenance and operations ad valorem tax revenue attributable to the
project, and any other tax revenue attributable to the effect of the
project on the economy of the state, in an amount sufficient to offset the
school district maintenance and operations ad valorem tax revenue lost as a
result of the agreement; and
(2) the limitation on appraised value is a significant consideration
by the applicant in determining whether to invest capital and construct the
project in this state.
(d) The comptroller shall state in writing the basis for the
determinations made under Subsections (c)(1) and (2).
(e) Notwithstanding Subsections (c) and (d), if the comptroller
makes a qualitative determination that other considerations associated with
the project result in a net positive benefit to the state, the comptroller
may issue the certificate.
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No
equivalent provision.
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SECTION 7. Section 313.0265(b),
Tax Code, is amended to read as follows:
(b) The comptroller shall
designate the following as substantive:
(1) each application
requesting a limitation on appraised value; and
(2) the economic impact
evaluation made in connection with the application [; and
[(3) each application
requesting school tax credits under Section 313.103].
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SECTION 6. Section
313.027(i), Tax Code, is amended to read as follows:
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
(i) A person and the school
district may not enter into an agreement under which the person agrees to
provide supplemental payments to a school district, including to a foundation or other entity that exists to provide material
or financial support to the school district [in an amount that exceeds an amount equal to $100 per student per
year in average daily attendance, as defined by Section 42.005, Education
Code], or for a period that exceeds the period beginning with the
period described by Section 313.021(4) and ending with the period described
by Section 313.104(2)(B) of this code.
This limit does not apply to
amounts described by Subsection (f)(1) or (2) of this section.
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SECTION 8. Sections
313.027(a), (f), (h), and (i), Tax Code, are amended to read as follows:
(a) If the person's
application is approved by the governing body of the school district, for
each of the first 10 [eight] tax years that begin after the
applicable qualifying time period, the appraised value for school district
maintenance and operations ad valorem tax purposes of the person's
qualified property as described in the agreement between the person and the
district entered into under this section in the school district may not
exceed the lesser of:
(1) the market value of the
property; or
(2) subject to Subsection
(b), the amount agreed to by the governing body of the school district.
(f) In addition, the
agreement:
(1) must incorporate each
relevant provision of this subchapter and, to the extent necessary, include
provisions for the protection of future school district revenues through
the adjustment of the minimum valuations, the payment of revenue offsets,
and other mechanisms agreed to by the property owner and the school
district;
(2) may provide that the
property owner will protect the school district in the event the district
incurs extraordinary education-related expenses related to the project that
are not directly funded in state aid formulas, including expenses for the
purchase of portable classrooms and the hiring of additional personnel to
accommodate a temporary increase in student enrollment attributable to the
project;
(3) must require the
property owner to maintain a viable presence in the school district for at
least three years after the date the limitation on appraised value of the
owner's property expires;
(4) must provide for the
termination of the agreement, the recapture of ad valorem tax revenue lost
as a result of the agreement if the owner of the property fails to comply
with the terms of the agreement, and payment of a penalty or interest, or
both, on that recaptured ad valorem tax revenue;
(5) may specify any
conditions the occurrence of which will require the district and the property
owner to renegotiate all or any part of the agreement; [and]
(6) must specify the ad
valorem tax years covered by the agreement; and
(7) must be in a form
approved by the comptroller.
(h) The agreement between
the governing body of the school district and the applicant may provide for
a deferral of the date on which the qualifying time period for the project
is to commence or, subsequent to the date the agreement is entered into, be
amended to provide for such a deferral. The agreement may not provide
for the deferral of the date on which the qualifying time period is to
commence to a date later than January 1 of the sixth tax year beginning
after the date the application is approved. This subsection may not be
construed to permit a qualifying time period that has commenced to continue
for more than the number of years applicable to the project under Section
313.021(4).
(i) A person and the school
district may not enter into an agreement under which the person agrees to
provide supplemental payments to a school district or to an entity that exists primarily to provide financial or material
support to a school district in an amount
that exceeds an amount equal to the greater of $100 per student per
year in average daily attendance, as defined by Section 42.005, Education
Code, or $50,000 per year, or in a tax year other than a tax year in
which the limitation on appraised value is in effect [for a period
that exceeds the period beginning with the period described by Section
313.021(4) and ending with the period described by Section 313.104(2)(B) of
this code]. This subsection
applies only to an agreement entered into in anticipation of or in
consideration for a school district's approval of an application for a
limitation on appraised value under this subchapter.
This subsection does not
apply to a payment under [limit does not apply to amounts described
by] Subsection (f)(1) or (2) [of this section].
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No
equivalent provision.
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SECTION 9. Section 313.0275,
Tax Code, is amended by adding Subsection (d) to read as follows:
(d) In the event of a
casualty loss that prevents a person from complying with Subsection (a),
the person may request and the comptroller may grant a waiver of the
penalty imposed under Subsection (b).
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SECTION 7. Section 313.031(b),
Tax Code, is amended to read as follows:
No
equivalent provision.
(b) The governing body of a
school district by official action shall establish reasonable nonrefundable
application fees to be paid by property owners who apply to the district
for a limitation on the appraised value of the person's property under this
subchapter. The amount of an application fee must be reasonable and may not
exceed the estimated cost to the district of processing and acting on an
application, including any costs to the school district associated with
[the cost of] the economic impact evaluation required by Sections
313.025 [and 313.026].
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SECTION 10. Section 313.031,
Tax Code, is amended to read as follows:
Sec. 313.031. RULES AND
FORMS; FEES. (a) The comptroller shall:
(1) adopt rules and forms
necessary for the implementation and administration of this chapter,
including rules for determining whether a property owner's property
qualifies as a qualified investment under Section 313.021(1); and
(2) provide without charge
one copy of the rules and forms to any school district and to any person
who states that the person intends to apply for a limitation on appraised
value under this subchapter [or a tax credit under Subchapter D].
(a-1) The comptroller by
official action may establish reasonable nonrefundable fees to be paid by
property owners who apply to a school district for a limitation on the
value of the person's property under this subchapter. The amount of a fee
must be reasonable and may not exceed the estimated cost to the comptroller
of performing the comptroller's duties under this chapter.
(b) The governing body of a
school district by official action shall establish reasonable nonrefundable
application fees to be paid by property owners who apply to the district
for a limitation on the appraised value of the person's property under this
subchapter. The amount of an application fee must be reasonable and may
not exceed the estimated cost to the district of processing and acting on
an application, including any cost to the school district associated
with [the cost of] the economic impact evaluation required by Section
[Sections] 313.025 [and 313.026].
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SECTION 8. Section
313.105(a), Tax Code, is amended to read as follows:
(a) If the comptroller or
[and] the governing body of a school district determines [determine]
that a person who received a tax credit under this subchapter for any
reason was not entitled to the credit received or was entitled to a lesser
amount of credit than the amount of the credit received, an additional tax
is imposed on the qualified property equal to the full credit or the amount
of the credit to which the person was not entitled, as applicable, plus
interest at an annual rate of seven percent calculated from the date the
credit was issued.
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No
equivalent provision.
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No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
|
SECTION 11. Section 313.032,
Tax Code, is amended by amending Subsections (a) and (c) and adding
Subsections (b-1) and (d) to read as follows:
(a) Before the beginning of
each regular session of the legislature, the comptroller shall submit to
the lieutenant governor, the speaker of the house of representatives, and
each other member of the legislature a report on the agreements entered
into under this chapter that includes:
(1) an assessment of the
following with regard to the agreements entered into under this chapter,
considered in the aggregate:
(A) the total number of
jobs created, direct and otherwise, in this state;
(B) the total effect on
personal income, direct and otherwise, in this state;
(C) the total amount of
investment in this state;
(D) the total taxable
value of property on the tax rolls in this state, including property for
which the limitation period has expired;
(E) the total value of
property not on the tax rolls in this state as a result of agreements
entered into under this chapter; and
(F) the total fiscal
effect on the state and local governments; and
(2) an assessment of
[assessing] the progress of each agreement made under this chapter that
states[. The report must be based on data certified to the comptroller
by each recipient of a limitation on appraised value under this subchapter
and state] for each agreement:
(A) [(1)] the
number of qualifying jobs each recipient of a limitation on appraised value
committed to create;
(B) [(2)] the
number of qualifying jobs each recipient created;
(C) [(3)] the total
amount of wages and the median wage of the qualifying [new]
jobs each recipient created;
(D) [(4)] the
amount of the qualified investment each recipient committed to spend or
allocate for each project;
(E) [(5)] the
amount of the qualified investment each recipient spent or allocated for
each project;
(F) [(6)] the
market value of the qualified property of each recipient as determined by
the applicable chief appraiser, including property that is no longer
eligible for a limitation on appraised value under the agreement;
(G) [(7)] the
limitation on appraised value for the qualified property of each recipient;
(H) [(8)] the
dollar amount of the taxes that would have been imposed on the qualified
property if the property had not received a limitation on appraised value; and
(I) [(9)] the
dollar amount of the taxes imposed on the qualified property[;
[(10) the number of new
jobs created by each recipient in each sector of the North American
Industry Classification System; and
[(11) of the number of
new jobs each recipient created, the number of jobs created that provide
health benefits for employees].
(b-1) In preparing the
portion of the report described by Subsection (a)(1), the comptroller may
use standard economic estimation techniques, including economic
multipliers.
(c) The portion of the
report described by Subsection (a)(2) must be based on data certified to
the comptroller by each recipient or former recipient of a limitation on
appraised value under this chapter.
(d) The comptroller
may require a recipient or former recipient of a limitation on appraised
value under this chapter to submit, on a form the comptroller provides,
information required to complete the report.
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No
equivalent provision.
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SECTION 12. The heading to
Subchapter C, Chapter 313, Tax Code, is amended to read as follows:
SUBCHAPTER C. LIMITATION ON
APPRAISED VALUE OF PROPERTY IN STRATEGIC INVESTMENT AREA OR CERTAIN
RURAL SCHOOL DISTRICTS
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|
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
|
SECTION 13. Section 313.051,
Tax Code, is amended to read as follows:
Sec. 313.051. APPLICABILITY.
(a) In this section, "strategic investment area" means an
area the comptroller determines under Subsection (a-3) is:
(1) a county within this
state with unemployment above the state average and per capita income below
the state average;
(2) an area within this
state that is a federally designated urban enterprise community or an urban
enhanced enterprise community; or
(3) a defense economic
readjustment zone designated under Chapter 2310, Government Code.
(a-1) This subchapter
applies only to a school district that has territory in:
(1) an area that qualifies
[qualified] as a strategic investment area [under Subchapter O,
Chapter 171, immediately before that subchapter expired]; or
(2) a county:
(A) that has a population of
less than 50,000; and
(B) in which, from 2000
[1990] to 2010 [2000], according to the federal
decennial census, the population:
(i) remained the same;
(ii) decreased; or
(iii) increased, but at a
rate of not more than the average rate of increase in the state during
that period [three percent per annum].
(a-2) [(a-1)]
Notwithstanding Subsection (a-1) [(a)], if on January 1,
2002, this subchapter applied to a school district in whose territory is
located a federal nuclear facility, this subchapter continues to apply to
the school district regardless of whether the school district ceased or
ceases to be described by Subsection (a-1) [(a)] after that
date.
(a-3) Not later than
September 1 of each year, the comptroller shall determine areas that
qualify as a strategic investment area using the most recently completed
full calendar year data available on that date and, not later than October
1, shall publish a list and map of the designated areas. A determination
under this subsection is effective for the following tax year for purposes
of this subchapter.
(b) The governing body of a
school district to which this subchapter applies may enter into an
agreement in the same manner as a school district to which Subchapter B
applies may do so under Subchapter B, subject to Sections 313.052-313.054.
Except as otherwise provided by this subchapter, the provisions of
Subchapter B apply to a school district to which this subchapter applies.
For purposes of this subchapter, a property owner is required to create [only]
at least 10 new jobs on the owner's qualified property. At least 80
percent of all the new jobs created must be qualifying jobs as defined by
Section 313.021(3) [, except that, for a school district described by
Subsection (a)(2), each qualifying job must pay at least 110 percent of the
average weekly wage for manufacturing jobs in the region designated for the
regional planning commission, council of governments, or similar regional
planning agency created under Chapter 391, Local Government Code, in which
the district is located].
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No
equivalent provision.
|
SECTION 14. The heading to
Subchapter E, Chapter 313, Tax Code, is amended to read as follows:
SUBCHAPTER E. AVAILABILITY
OF TAX CREDIT AFTER PROGRAM EXPIRES OR IS REPEALED
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No
equivalent provision.
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SECTION 15. Section
313.171(b), Tax Code, is amended to read as follows:
(b) The repeal [expiration]
of Subchapter D does not affect a property owner's entitlement to a tax
credit granted under Subchapter D if the property owner qualified for the
tax credit before the repeal [expiration] of Subchapter D.
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No
equivalent provision.
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SECTION 16. Section
42.2515(a), Education Code, is amended to read as follows:
(a) For each school year, a
school district, including a school district that is otherwise ineligible
for state aid under this chapter, is entitled to state aid in an amount
equal to the amount of all tax credits credited against ad valorem taxes of
the district in that year under former Subchapter D, Chapter 313,
Tax Code.
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No
equivalent provision.
|
SECTION 17. Section
42.302(e), Education Code, is amended to read as follows:
(e) For purposes of this
section, school district taxes for which credit is granted under former
Subchapter D, Chapter 313, Tax Code, are considered taxes collected by the
school district as if the taxes were paid when the credit for the taxes was
granted.
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SECTION 9.
Sections 313.008 and 313.009,
Tax Code, are repealed.
|
SECTION 18. The following
provisions of the Tax Code are repealed:
(1) Sections 313.008,
313.009, and 313.021(5); and
(2)
Subchapter D, Chapter 313.
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No
equivalent provision.
|
SECTION 19. Chapter 313, Tax
Code, as amended by this Act, applies only to an application filed under
that chapter on or after the effective date of this Act. An application
filed under that chapter before the effective date of this Act is governed
by the law in effect on the date the application was filed, and the former
law is continued in effect for that purpose.
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No
equivalent provision.
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SECTION 20. The comptroller
shall make the initial determination under Section 313.051(a-3), Tax Code,
as added by this Act, not later than September 1, 2014, and shall publish
the initial list and map required by that subsection not later than October
1, 2014.
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SECTION 10. This Act takes
effect immediately if it receives a vote of
two-thirds of all the members elected to each house, as provided by Section
39, Article III, Texas Constitution. If this Act does not receive the vote
necessary for immediate effect, this Act takes effect September 1, 2013.
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SECTION 21. This Act takes
effect January 1, 2014.
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