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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 313.002, Tax Code, is amended to read as |
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follows: |
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Sec. 313.002. FINDINGS. The legislature finds that: |
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(1) many states have enacted aggressive economic |
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development laws designed to attract large employers, create jobs, |
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and strengthen their economies; |
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(2) given Texas' relatively high property taxes, it is |
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difficult for the state to compete for new capital projects without |
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some type of temporary limits on property taxes levied on new |
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investment [the State of Texas has slipped in its national ranking
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each year between 1993 and 2000 in terms of attracting major new
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manufacturing facilities to this state]; |
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(3) a significant portion of the Texas economy |
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continues to be based in [the] manufacturing and other |
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capital-intensive industries [industry], and their [the] continued |
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growth and overall health [of the manufacturing sector] serves the |
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Texas economy well; and |
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(4) without a vibrant, strong manufacturing sector, |
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other sectors of the economy, especially the state's service |
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sector, will also suffer adverse consequences[; and
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[(5)
the current property tax system of this state
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does not favor capital-intensive businesses such as
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manufacturers]. |
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SECTION 2. Section 313.004, Tax Code, is amended to read as |
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follows: |
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Sec. 313.004. LEGISLATIVE INTENT. It is the intent of the |
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legislature in enacting this chapter that: |
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(1) economic development decisions should occur at the |
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local level and be consistent with identifiable statewide economic |
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development goals; |
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(2) this chapter should not be construed or |
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interpreted to allow: |
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(A) property owners to pool investments to create |
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sufficiently large investments to qualify for an ad valorem tax |
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benefit or financial benefit provided by this chapter; |
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(B) an applicant for an ad valorem tax benefit or |
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financial benefit provided by this chapter to assert that jobs will |
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be eliminated if certain investments are not made if the assertion |
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is not true; or |
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(C) an entity not subject to the franchise tax |
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imposed under Chapter 171 by virtue of its form of business [a sole
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proprietorship, partnership, or limited liability partnership] to |
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receive an ad valorem tax benefit or financial benefit provided by |
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this chapter; and |
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(3) in implementing this chapter, school districts |
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should: |
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(A) strictly interpret the criteria and |
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selection guidelines provided by this chapter; and |
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(B) approve only those applications for an ad |
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valorem tax benefit or financial benefit provided by this chapter |
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that: |
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(i) enhance the local community; |
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(ii) improve the local public education |
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system; |
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(iii) create high-paying jobs; and |
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(iv) advance the economic development goals |
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of this state as identified by the Texas Strategic Economic |
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Development Planning Commission or its successor. |
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SECTION 3. Section 313.021, Tax Code, is transferred to |
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Subchapter A, Chapter 313, Tax Code, redesignated as Section |
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313.0045, Tax Code, and amended to read as follows: |
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Sec. 313.0045 [313.021]. DEFINITIONS. (a) In this |
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chapter [subchapter]: |
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(1) "Qualified investment" means: |
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(A) tangible personal property that is first |
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placed in service in this state during the applicable qualifying |
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time period that begins on or after January 1, 2002, without regard |
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to whether the property is affixed to or incorporated into real |
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property, and that is described as Section 1245 property by Section |
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1245(a), Internal Revenue Code of 1986; |
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(B) tangible personal property that is first |
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placed in service in this state during the applicable qualifying |
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time period that begins on or after January 1, 2002, without regard |
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to whether the property is affixed to or incorporated into real |
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property, and that is used in connection with the manufacturing, |
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processing, or fabrication in a cleanroom environment of a |
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semiconductor product, without regard to whether the property is |
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actually located in the cleanroom environment, including: |
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(i) integrated systems, fixtures, and |
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piping; |
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(ii) all property necessary or adapted to |
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reduce contamination or to control airflow, temperature, humidity, |
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chemical purity, or other environmental conditions or |
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manufacturing tolerances; and |
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(iii) production equipment and machinery, |
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moveable cleanroom partitions, and cleanroom lighting; |
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(C) tangible personal property that is first |
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placed in service in this state during the applicable qualifying |
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time period that begins on or after January 1, 2002, without regard |
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to whether the property is affixed to or incorporated into real |
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property, and that is used in connection with the operation of a |
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nuclear electric power generation facility, including: |
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(i) property, including pressure vessels, |
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pumps, turbines, generators, and condensers, used to produce |
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nuclear electric power; and |
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(ii) property and systems necessary to |
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control radioactive contamination; |
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(D) tangible personal property that is first |
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placed in service in this state during the applicable qualifying |
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time period that begins on or after January 1, 2002, without regard |
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to whether the property is affixed to or incorporated into real |
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property, and that is used in connection with operating an |
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integrated gasification combined cycle electric generation |
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facility, including: |
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(i) property used to produce electric power |
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by means of a combined combustion turbine and steam turbine |
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application using synthetic gas or another product produced by the |
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gasification of coal or another carbon-based feedstock; or |
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(ii) property used in handling materials to |
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be used as feedstock for gasification or used in the gasification |
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process to produce synthetic gas or another carbon-based feedstock |
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for use in the production of electric power in the manner described |
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by Subparagraph (i); |
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(E) tangible personal property that is first |
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placed in service in this state during the applicable qualifying |
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time period [that begins on or after January 1, 2010], without |
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regard to whether the property is affixed to or incorporated into |
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real property, and that is used in connection with operating an |
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advanced clean energy project, as defined by Section 382.003, |
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Health and Safety Code; [or] |
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(F) a building or a permanent, nonremovable |
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component of a building that is built or constructed during the |
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applicable qualifying time period that begins on or after January |
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1, 2002, and that houses tangible personal property described by |
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Paragraph (A), (B), (C), (D), or (E); or |
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(G) a renovation, expansion, or other |
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improvement to an existing building as part of a discrete project |
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that increases the value of an existing property. |
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(2) "Qualified property" means: |
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(A) land: |
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(i) that is located in an area designated as |
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a reinvestment zone under Chapter 311 or 312 or as an enterprise |
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zone under Chapter 2303, Government Code; |
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(ii) on which a person proposes to |
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construct a new building or erect or affix a new improvement that |
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does not exist before the date the person applies for a limitation |
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on appraised value under this subchapter; |
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(iii) that is not subject to a tax abatement |
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agreement entered into by a school district under Chapter 312; and |
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(iv) on which, in connection with the new |
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building or [new] improvement described by Subparagraph (ii), the |
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owner or lessee of, or the holder of another possessory interest in, |
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the land proposes to: |
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(a) make a qualified investment in an |
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amount equal to at least the minimum amount required by Section |
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313.023; and |
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(b) create at least 25 new jobs; |
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(B) the new building or other new improvement |
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described by Paragraph (A)(ii); and |
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(C) tangible personal property that: |
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(i) is not subject to a tax abatement |
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agreement entered into by a school district under Chapter 312; and |
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(ii) except for new equipment described in |
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Section 151.318(q) or (q-1), is first placed in service in the new |
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building or in or on the new improvement described by Paragraph |
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(A)(ii), or on the land on which that new building or new |
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improvement is located, if the personal property is ancillary and |
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necessary to the business conducted in that new building or in or on |
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that new improvement. |
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(3) "Qualifying job" means a permanent full-time job |
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that: |
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(A) requires at least 1,600 hours of work a year; |
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(B) is not transferred from one area in this |
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state to another area in this state; |
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(C) is not created to replace a previous |
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employee; |
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(D) complies with the Patient Protection and |
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Affordable Care Act (Pub. L. No. 111-148) or a successor law [is
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covered by a group health benefit plan for which the business offers
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to pay at least 80 percent of the premiums or other charges assessed
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for employee-only coverage under the plan, regardless of whether an
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employee may voluntarily waive the coverage]; and |
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(E) pays at least 110 percent of the lessor of: |
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(i) the county average weekly wage for |
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manufacturing jobs in the county where the job is located; or |
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(ii) the county average weekly wage for all |
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jobs in the county where the job is located, if the property owner |
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creates more than 1,000 jobs in that county. |
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(4) "Qualifying time period" means: |
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(A) the period that begins on the date that a |
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person's application for a limitation on appraised value under this |
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chapter [subchapter] is approved by the governing body of the |
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school district and ends on December 31 of the second tax year that |
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begins after that date, except as provided by Paragraph (B) or (C) |
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of this subdivision or Section 313.014(h) [313.027(h)]; |
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(B) in connection with a nuclear electric power |
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generation facility, the first seven tax years that begin on or |
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after the third anniversary of the date the school district |
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approves the property owner's application for a limitation on |
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appraised value under this chapter [subchapter], unless a shorter |
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time period is agreed to by the governing body of the school |
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district and the property owner; or |
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(C) in connection with an advanced clean energy |
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project, as defined by Section 382.003, Health and Safety Code, the |
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first five tax years that begin on or after the third anniversary of |
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the date the school district approves the property owner's |
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application for a limitation on appraised value under this chapter |
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[subchapter], unless a shorter time period is agreed to by the |
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governing body of the school district and the property owner. |
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(5) "County average weekly wage for manufacturing |
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jobs" means: |
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(A) the average weekly wage in a county for |
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manufacturing jobs during the most recent four quarterly periods |
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for which data is available at the time a person submits an |
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application for a limitation on appraised value under this chapter |
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[subchapter], as computed by the Texas Workforce Commission; or |
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(B) the average weekly wage for manufacturing |
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jobs in the region designated for the regional planning commission, |
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council of governments, or similar regional planning agency created |
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under Chapter 391, Local Government Code, in which the county is |
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located during the most recent four quarterly periods for which |
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data is available at the time a person submits an application for a |
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limitation on appraised value under this chapter [subchapter], as |
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computed by the Texas Workforce Commission. |
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(6) "Texas priority project" means a project |
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designated by the governor: |
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(A) that has a qualified investment in excess of |
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$1 billion; |
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(B) that the governor determines is in the best |
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interest of the state economy; and |
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(C) for which the governor certifies the |
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designation in writing to the entity applying for a limitation |
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under this chapter. |
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(b) Unless this chapter defines a word or phrase used in |
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this chapter, Section 1.04 or any other section of Title 1 or this |
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title that defines the word or phrase or ascribes a meaning to the |
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word or phrase applies to the word or phrase used in this chapter. |
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SECTION 4. Subsection (a), Section 313.006, Tax Code, is |
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amended to read as follows: |
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(a) In this section, "impact fee" means a charge or |
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assessment imposed against a qualified property[, as defined by
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Section 313.021,] in order to generate revenue for funding or |
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recouping the costs of capital improvements or facility expansions |
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for water, wastewater, or storm water services or for roads |
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necessitated by or attributable to property that receives a |
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limitation on appraised value under this chapter. |
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SECTION 5. Section 313.007, Tax Code, is amended to read as |
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follows: |
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Sec. 313.007. EXPIRATION. Subchapters (A-1), B, and C[,
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and D] expire December 31, 2024 [2014]. |
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SECTION 6. Chapter 313, Tax Code, is amended by adding |
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Subchapter A-1, and a heading is added to that subchapter to read as |
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follows: |
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SUBCHAPTER A-1. ELIGIBILITY; APPLICATION AND REPORTING |
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SECTION 7. Sections 313.024, 313.025, 313.026, 313.0265, |
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313.027, 313.0275, 313.028, 313.030, 313.031, and 313.032, Tax |
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Code, are transferred to Subchapter A-1, Chapter 313, Tax Code, as |
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added by this Act, and redesignated as Sections 313.011, 313.012, |
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313.013, 313.0135, 313.014, 313.0145, 313.015, 313.016, 313.017, |
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and 313.018, Tax Code, respectively, and amended to read as |
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follows: |
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Sec. 313.011 [313.024]. ELIGIBLE PROPERTY. (a) This |
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chapter applies [subchapter and Subchapters C and D apply] only to |
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property owned by an entity to which Chapter 171 applies. |
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(b) To be eligible for a limitation on appraised value under |
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this chapter [subchapter], the entity must use the property in |
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connection with: |
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(1) manufacturing; |
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(2) research and development; |
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(3) a clean coal project, as defined by Section 5.001, |
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Water Code; |
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(4) an advanced clean energy project, as defined by |
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Section 382.003, Health and Safety Code; |
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(5) renewable energy electric generation; |
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(6) electric power generation using integrated |
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gasification combined cycle technology; |
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(7) nuclear electric power generation; [or] |
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(8) a computer center primarily used in connection |
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with one or more activities described by Subdivisions (1) through |
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(7) conducted by the entity; or |
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(9) a Texas priority project. |
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(c) For purposes of determining an applicant's eligibility |
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for a limitation under this chapter [subchapter]: |
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(1) the land on which a building or component of a |
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building described by Section 313.0045(a)(1)(E) [313.021(1)(E)] is |
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located is not considered a qualified investment; |
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(2) property that is leased under a capitalized lease |
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may be considered a qualified investment; |
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(3) property that is leased under an operating lease |
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may not be considered a qualified investment; and |
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(4) property that is owned by a person other than the |
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applicant and that is pooled or proposed to be pooled with property |
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owned by the applicant may not be included in determining the amount |
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of the applicant's qualifying investment. |
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(d) To be eligible for a limitation on appraised value under |
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this chapter [subchapter], at least 80 percent of all the new jobs |
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created by the property owner must be qualifying jobs [as defined by
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Section 313.021(3)]. |
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(e) In this section: |
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(1) "Manufacturing" means an establishment primarily |
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engaged in activities described in sectors 31-33 of the 2007 North |
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American Industry Classification System. |
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(2) "Renewable energy electric generation" means an |
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establishment primarily engaged in activities described in |
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category 221119 of the 1997 North American Industry Classification |
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System. |
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(3) "Integrated gasification combined cycle |
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technology" means technology used to produce electricity in a |
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combined combustion turbine and steam turbine application using |
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synthetic gas or another product produced from the gasification of |
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coal or another carbon-based feedstock, including related |
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activities such as materials-handling and gasification of coal or |
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another carbon-based feedstock. |
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(4) "Nuclear electric power generation" means |
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activities described in category 221113 of the 2002 North American |
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Industry Classification System. |
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(5) "Research and development" means an establishment |
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primarily engaged in activities described in category 541710 of the |
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2002 North American Industry Classification System. |
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(6) "Computer center" means an establishment |
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primarily engaged in providing electronic data processing and |
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information storage. |
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Sec. 313.012 [313.025]. APPLICATION; ACTION ON |
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APPLICATION. (a) The owner or lessee of, or the holder of another |
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possessory interest in, any qualified property [described by
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Section 313.021(2)(A), (B), or (C)] may apply to the governing body |
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of the school district in which the property is located for a |
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limitation on the appraised value for school district maintenance |
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and operations ad valorem tax purposes of the person's qualified |
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property. An application must be made on the form prescribed by the |
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comptroller and include the information required by the |
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comptroller, and it must be accompanied by: |
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(1) the application fee established by the governing |
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body of the school district; |
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(2) information sufficient to show that the real and |
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personal property identified in the application as qualified |
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property meets the applicable criteria established by Section |
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313.0045(a)(2) [313.021(2)]; and |
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(3) information relating to each applicable criterion |
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listed in Section 313.013 [313.026]. |
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(a-1) Within seven days of the receipt of each document, the |
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school district shall submit to the comptroller a copy of the |
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application and the agreement between the applicant and the school |
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district. If an economic analysis of the proposed project is |
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submitted to the school district, the district shall submit a copy |
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of the analysis to the comptroller. In addition, the school |
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district shall submit to the comptroller any subsequent revision of |
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or amendment to any of those documents within seven days of its |
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receipt. The comptroller shall publish each document received from |
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the school district under this subsection on the comptroller's |
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Internet website. If the school district maintains a generally |
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accessible Internet website, the district shall provide on its |
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website a link to the location of those documents posted on the |
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comptroller's website in compliance with this subsection. This |
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subsection does not require the comptroller to post information |
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that is confidential under Section 313.015 [313.028]. |
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(b) The governing body of a school district is not required |
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to consider an application for a limitation on appraised value that |
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is filed with the governing body under Subsection (a). If the |
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governing body of the school district does elect to consider an |
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application, the governing body shall deliver three copies of the |
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application to the comptroller and request that the comptroller |
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provide an economic impact evaluation of the application to the |
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school district. Except as provided by Subsection (b-1), the |
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comptroller shall conduct or contract with a third person to |
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conduct the evaluation, which shall be completed and provided to |
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the governing body of the school district as soon as practicable. |
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The governing body shall provide to the comptroller or third person |
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any requested information. A methodology to allow comparisons of |
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economic impact for different schedules of the addition of |
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qualified investment or qualified property may be developed as part |
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of the economic impact evaluation. The governing body shall |
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provide a copy of the evaluation to the applicant on request. The |
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comptroller may charge and collect a fee sufficient to cover the |
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costs of providing the economic impact evaluation. The governing |
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body of a school district shall approve or disapprove an |
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application before the 151st day after the date the application is |
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filed, unless the economic impact evaluation has not been received |
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or an extension is agreed to by the governing body and the |
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applicant. |
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(b-1) The comptroller shall indicate on one copy of the |
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application the date the comptroller received the application and |
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deliver a [that] copy to the Texas Education Agency. The Texas |
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Education Agency shall determine the effect that the applicant's |
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proposal will have on the number or size of the school district's |
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instructional facilities, as required to be included in the |
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economic impact evaluation by Section 313.013(a)(11) |
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[313.026(a)(9)], and submit a written report containing the |
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agency's determination to the 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 |
|
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. |
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(c) In determining whether to grant an application, the |
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governing body of the school district is entitled to request and |
|
receive assistance from: |
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(1) the comptroller; |
|
(2) the Texas Department of Economic Development; |
|
(3) the Texas Workforce Investment Council; and |
|
(4) the Texas Workforce Commission. |
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(d) 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 as to |
|
whether the application should be approved or disapproved. |
|
(d-1) The governing body of a school district may approve an |
|
application that the comptroller 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 chapter [subchapter] that the governing body elects to |
|
consider, the governing body of the school district must make a |
|
written finding as to each criterion listed in Section 313.013 |
|
[313.026]. The governing body shall deliver a copy of those |
|
findings to the applicant. |
|
(f) The governing body may approve an application only if |
|
the governing body finds that the information in the application is |
|
true and correct, finds that the applicant is eligible for the |
|
limitation on the appraised value of the person's qualified |
|
property, and determines that granting the application is in the |
|
best interest of the school district and this state. |
|
(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 the new |
|
jobs creation requirement in Section 313.0045(a)(2)(A)(iv)(b) |
|
[313.021(2)(A)(iv)(b)] or 313.051(b) and approve an application if |
|
the 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. |
|
(g) The Texas Department of Economic Development or its |
|
successor may recommend that a school district grant a person a |
|
limitation on appraised value under this chapter. In determining |
|
whether to grant an application, the governing body of the school |
|
district shall consider any recommendation made by the Texas |
|
Department of Economic Development or its successor. |
|
(h) After receiving a copy of the application, the |
|
comptroller shall determine whether the property meets the |
|
requirements of Section 313.011 [313.024] for eligibility for a |
|
limitation on appraised value under this chapter [subchapter]. The |
|
comptroller shall notify the governing body of the school district |
|
of the comptroller's determination and provide the applicant an |
|
opportunity for a hearing before the determination becomes final. |
|
A hearing under this subsection is a contested case hearing and |
|
shall be conducted by the State Office of Administrative Hearings |
|
in the manner provided by Section 2003.101, Government Code. The |
|
applicant has the burden of proof on each issue in the hearing. The |
|
applicant may seek judicial review of the comptroller's |
|
determination in a Travis County district court under the |
|
substantial evidence rule as provided by Subchapter G, Chapter |
|
2001, Government Code. |
|
(i) If the comptroller's determination under Subsection (h) |
|
that the property does not meet the requirements of Section 313.011 |
|
[313.024] for eligibility for a limitation on appraised value under |
|
this chapter [subchapter] becomes final, the comptroller is not |
|
required to provide an economic impact evaluation of the |
|
application or to submit a 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. |
|
Sec. 313.013 [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 investment; |
|
(5) [the relationship between the applicant's industry
|
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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 |
|
intended investment [per qualifying job to be created by the
|
|
applicant]; |
|
(6) [(7)] the number of qualifying, construction, and |
|
operations jobs to be created by the applicant; |
|
(7) [(8)] the wages, salaries, and benefits to be |
|
offered by the applicant to qualifying, construction, and |
|
operations job holders; |
|
(8) [(9)] the ability of the applicant to locate or |
|
relocate in another state or another region of this state; |
|
(9) [(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 and |
|
otherwise [or indirect], that would be realized during the |
|
construction and operation of the facility, including [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, direct and otherwise, during the |
|
construction and operation of the facility, including [qualifying
|
|
time period,] the limitation period[,] and a period of time after |
|
the limitation period considered appropriate by the comptroller; |
|
(10) [(11)] the economic condition of the region of |
|
the state at the time the person's application is being considered; |
|
(11) [(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; and |
|
(12) [(14)
the projected market value of the
|
|
qualified property of the applicant as determined by the
|
|
comptroller;
|
|
[(15)
the proposed limitation on appraised value for
|
|
the qualified property of the applicant;
|
|
[(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;
|
|
[(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;
|
|
[(18)] the projected effect on the Foundation School |
|
Program of payments to the district for each year of the agreement[;
|
|
[(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 (17) from the
|
|
projected taxes stated in Subdivision (16)]. |
|
(b) The comptroller's recommendations shall be based on the |
|
criteria listed in Subsection (a) [Subsections (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 313.012(b) [313.025(b)]. |
|
Sec. 313.0135 [313.0265]. DISCLOSURE OF APPRAISED VALUE |
|
LIMITATION INFORMATION. (a) The comptroller shall post on the |
|
comptroller's Internet website each document or item of information |
|
the comptroller designates as substantive before the 15th day after |
|
the date the document or item of information was received or |
|
created. Each document or item of information must continue to be |
|
posted until the appraised value limitation expires. |
|
(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]. |
|
(c) If a school district maintains a generally accessible |
|
Internet website, the district shall maintain a link on its |
|
Internet website to the area of the comptroller's Internet website |
|
where information on each of the district's agreements to limit |
|
appraised value is maintained. |
|
Sec. 313.014 [313.027]. LIMITATION ON APPRAISED VALUE; |
|
AGREEMENT. (a) If the person's application is approved by the |
|
governing body of the school district, [for each of the first 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 under Subchapter B or |
|
C, as applicable. |
|
(b) The agreement must provide that the limitation under |
|
Subsection (a) shall apply for a period of 10 years. The agreement |
|
must specify the beginning date of the limitation, which must be the |
|
first tax year beginning after either: |
|
(1) the application date; |
|
(2) the qualifying time period; or |
|
(3) the date commercial operations begin at the |
|
project site. [The amount agreed to by the governing body of a
|
|
school district under Subsection (a)(2) must be an amount in
|
|
accordance with the following, according to the category
|
|
established by Section 313.022 to which the school district belongs:
|
|
[CATEGORY
|
MINIMUM AMOUNT OF LIMITATION
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) The limitation amounts prescribed under Subchapter B or |
|
C, as applicable, [listed in Subsection (b)] are minimum amounts. A |
|
school district, regardless of category, may agree to a greater |
|
amount than those amounts. |
|
(d) The governing body of the school district and the |
|
property owner shall enter into a written agreement for the |
|
implementation of the limitation on appraised value under this |
|
chapter [subchapter] on the owner's qualified property. |
|
(e) The agreement must describe with specificity the |
|
qualified investment that the person will make on or in connection |
|
with the person's qualified property that is subject to the |
|
limitation on appraised value under this chapter [subchapter]. |
|
Other property of the person that is not specifically described in |
|
the agreement is not subject to the limitation unless the governing |
|
body of the school district, by official action, provides that the |
|
other property is subject to the limitation. |
|
(f) In addition, the agreement: |
|
(1) must incorporate each relevant provision of this |
|
chapter [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. |
|
(g) When appraising a person's qualified property subject |
|
to a limitation on appraised value under this section, the chief |
|
appraiser shall determine the market value of the property and |
|
include both the market value and the appropriate value under |
|
Subsection (a) in the appraisal records. |
|
(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. However, such limitation may take |
|
effect no later than the fourth 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 313.0045(a)(4) [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 any other entity on behalf of 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 |
|
313.0045(a)(4) [313.021(4)] and ending three tax years after the |
|
date the person's eligibility for the limitation under this chapter |
|
expires [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]. |
|
(j) An agreement under this chapter must disclose any |
|
consideration promised in conjunction with the application and the |
|
limitation. |
|
Sec. 313.0145 [313.0275]. RECAPTURE OF AD VALOREM TAX |
|
REVENUE LOST. (a) Notwithstanding any other provision of this |
|
chapter to the contrary, a person with whom a school district enters |
|
into an agreement under this chapter [subchapter] must make the |
|
minimum amount of qualified investment [during the qualifying time
|
|
period] and create the required number of qualifying jobs during |
|
each year of the agreement. |
|
(b) If in any tax year a property owner fails to comply with |
|
Subsection (a), the property owner is liable to this state for a |
|
penalty equal to the amount computed by subtracting from the market |
|
value of the property for that tax year the value of the property as |
|
limited by the agreement and multiplying the difference by the |
|
maintenance and operations tax rate of the school district for that |
|
tax year. |
|
(c) A penalty imposed under Subsection (b) becomes |
|
delinquent if not paid on or before February 1 of the following tax |
|
year. Section 33.01 applies to the delinquent penalty in the manner |
|
that section applies to delinquent taxes. |
|
(d) In the event of a casualty loss, the applicant may |
|
request and the school district may grant a waiver of the |
|
requirements of this section. |
|
Sec. 313.015 [313.028]. CERTAIN BUSINESS INFORMATION |
|
CONFIDENTIAL. Information provided to a school district in |
|
connection with an application for a limitation on appraised value |
|
under this chapter [subchapter] that describes the specific |
|
processes or business activities to be conducted or the specific |
|
tangible personal property to be located on real property covered |
|
by the application shall be segregated in the application from |
|
other information in the application and is confidential and not |
|
subject to public disclosure unless the governing body of the |
|
school district approves the application. Other information in the |
|
custody of a school district or the comptroller in connection with |
|
the application, including information related to the economic |
|
impact of a project or the essential elements of eligibility under |
|
this chapter, such as the nature and amount of the projected |
|
investment, employment, wages, and benefits, may not be considered |
|
confidential business information if the governing body of the |
|
school district agrees to consider the application. Information in |
|
the custody of a school district or the comptroller if the governing |
|
body approves the application is not confidential under this |
|
section. |
|
Sec. 313.016 [313.030]. PROPERTY NOT ELIGIBLE FOR TAX |
|
ABATEMENT. Property subject to a limitation on appraised value in a |
|
tax year under this chapter [subchapter] is not eligible for tax |
|
abatement by a school district under Chapter 312 in that tax year. |
|
Sec. 313.017 [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 313.0045(a)(1) [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 chapter [subchapter or a tax credit under Subchapter D]. |
|
(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 chapter [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 the cost of the |
|
economic impact evaluation required by Sections 313.012 [313.025] |
|
and 313.013 [313.026]. |
|
Sec. 313.018 [313.032]. REPORT ON COMPLIANCE WITH |
|
AGREEMENTS. (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 agreements made under |
|
this chapter. The report must include: |
|
(1) an assessment of the combination of all agreements |
|
under the program, including: |
|
(A) the total number of jobs created, direct and |
|
otherwise, in Texas; |
|
(B) the total impact on personal income, direct |
|
and otherwise, in Texas; |
|
(C) the total amount of investment, direct and |
|
otherwise, in Texas; |
|
(D) the total amount of taxable value on the tax |
|
rolls, direct and otherwise, in Texas, including properties for |
|
which the limitation period has expired; |
|
(E) the total amount of value not on the tax rolls |
|
as a result of a limitation agreement; and |
|
(F) the total fiscal effects, direct and |
|
otherwise, on state and local units of government in Texas; and |
|
(2) an assessment of [assessing] the progress of each |
|
agreement made under this chapter. The report must be based on data |
|
certified to the comptroller by each recipient of a limitation on |
|
appraised value under this chapter [subchapter] and state for each |
|
agreement: |
|
(A) [(1)] the number of new qualifying jobs each |
|
recipient of a limitation on appraised value committed to create; |
|
(B) [(2)] the number of new qualifying jobs each |
|
recipient created; |
|
(C) [(3)] the total amount of wages [median wage] |
|
of the 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 that of property for which the agreement has |
|
expired; |
|
(G) [(7)] the limitation on appraised value for |
|
the qualified property of each recipient; and |
|
(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;
|
|
[(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) The report may not include information that is |
|
confidential by law. |
|
(c) In preparing the assessment required under Subsection |
|
(a)(1), the comptroller may use standard economic estimation |
|
techniques, including economic multipliers. |
|
(d) The comptroller may require a recipient to submit, on a |
|
form the comptroller provides, information required to prepare |
|
[complete] the assessment required under Subsection (a)(2) |
|
[report]. |
|
SECTION 8. The heading to Subchapter B, Chapter 313, Tax |
|
Code, is amended to read as follows: |
|
SUBCHAPTER B. GENERAL LIMITATION ON APPRAISED VALUE OF CERTAIN |
|
PROPERTY USED TO CREATE JOBS |
|
SECTION 9. Subsection (b), Section 313.022, Tax Code, is |
|
amended to read as follows: |
|
(b) For purposes of determining the required minimum amount |
|
of a qualified investment under Section 313.0045(a)(2)(A)(iv)(a) |
|
[313.021(2)(A)(iv)(a),] and the minimum amount of a limitation on |
|
appraised value under this subchapter [Section 313.027(b)], school |
|
districts to which this subchapter applies are categorized |
|
according to the taxable value of property in the district for the |
|
preceding tax year determined under Subchapter M, Chapter 403, |
|
Government Code, as follows: |
|
CATEGORY |
TAXABLE VALUE OF PROPERTY |
|
|
|
|
II |
$1 billion or more but less than $10 billion |
|
|
III |
$500 million or more but less than $1 billion |
|
|
IV |
$100 million or more but less than $500 million |
|
|
|
|
SECTION 10. Section 313.023, Tax Code, is amended to read as |
|
follows: |
|
Sec. 313.023. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. For |
|
each category of school district established by Section 313.022, |
|
the minimum amount of a qualified investment under Section |
|
313.0045(a)(2)(A)(iv)(a) [313.021(2)(A)(iv)(a)] is as follows: |
|
CATEGORY |
MINIMUM QUALIFIED INVESTMENT |
|
|
|
|
|
|
|
|
|
|
|
|
SECTION 11. Subchapter B, Chapter 313, Tax Code, is amended |
|
by adding Section 313.0235 to read as follows: |
|
Sec. 313.0235. LIMITATION ON APPRAISED VALUE. For a school |
|
district to which this subchapter applies, the amount agreed to by |
|
the governing body of the district must be an amount in accordance |
|
with the following, according to the category established by |
|
Section 313.022 to which the school district belongs: |
|
CATEGORY |
MINIMUM AMOUNT OF LIMITATION |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
CERTAIN [RURAL] SCHOOL DISTRICTS |
|
SECTION 13. Subsections (a) and (b), Section 313.051, Tax |
|
Code, are amended to read as follows: |
|
(a) This subchapter applies only to a school district that |
|
has territory in: |
|
(1) an area determined by the comptroller to be in: |
|
(A) a county that has above state average |
|
unemployment and below state average per capita income; |
|
(B) a federally designated urban enterprise |
|
community or urban enhanced enterprise community; or |
|
(C) a defense economic readjustment zone |
|
designated under Chapter 2310, Government Code [that 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, during the decade preceding [from
|
|
1990 to 2000, according to] the most recent federal decennial |
|
census, the population: |
|
(i) remained the same; |
|
(ii) decreased; or |
|
(iii) increased, but at a rate of not more |
|
than three percent per annum. |
|
(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 |
|
A-1 [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. |
|
SECTION 14. Sections 313.052 and 313.053, Tax Code, are |
|
amended to read as follows: |
|
Sec. 313.052. CATEGORIZATION OF SCHOOL DISTRICTS. For |
|
purposes of determining the required minimum amount of a qualified |
|
investment under Section 313.0045(a)(2)(A)(iv)(a) |
|
[313.021(2)(A)(iv)(a)] and the minimum amount of a limitation on |
|
appraised value under this subchapter, school districts to which |
|
this subchapter applies are categorized according to the taxable |
|
value of industrial property in the district for the preceding tax |
|
year determined under Subchapter M, Chapter 403, Government Code, |
|
as follows: |
|
CATEGORY |
TAXABLE VALUE OF INDUSTRIAL PROPERTY |
|
|
|
|
II |
$90 million or more but less than $200 million |
|
|
III |
$1 million or more but less than $90 million |
|
|
IV |
$100,000 or more but less than $1 million |
|
|
|
|
Sec. 313.053. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. For |
|
each category of school district established by Section 313.052, |
|
the minimum amount of a qualified investment under Section |
|
313.0045(a)(2)(A)(iv)(a) [313.021(2)(A)(iv)(a)] is as follows: |
|
CATEGORY |
MINIMUM QUALIFIED INVESTMENT |
|
|
|
|
|
|
|
|
|
|
|
|
SECTION 15. Subsection (a), Section 313.054, Tax Code, is |
|
amended to read as follows: |
|
(a) For a school district to which this subchapter applies, |
|
the amount agreed to by the governing body of the district [under
|
|
Section 313.027(a)(2)] must be an amount in accordance with the |
|
following, according to the category established by Section 313.052 |
|
to which the school district belongs: |
|
CATEGORY |
MINIMUM AMOUNT OF LIMITATION |
|
|
|
|
|
|
|
|
|
|
|
|
SECTION 16. The heading to Subchapter E, Chapter 313, Tax |
|
Code, is amended to read as follows: |
|
SUBCHAPTER E. EFFECT [AVAILABILITY] OF [TAX CREDIT AFTER] PROGRAM |
|
EXPIRATION [EXPIRES] |
|
SECTION 17. Section 313.171, Tax Code, is amended to read as |
|
follows: |
|
Sec. 313.171. SAVING PROVISION [PROVISIONS]. [(a)] A |
|
limitation on appraised value approved under Subchapter A-1, B, or |
|
C before the expiration of that subchapter continues in effect |
|
according to that subchapter as that subchapter existed immediately |
|
before its expiration, and that law is continued in effect for |
|
purposes of the limitation on appraised value. |
|
[(b)
The 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 expiration of Subchapter D.] |
|
SECTION 18. The following provisions of the Tax Code are |
|
repealed: |
|
(1) Sections 313.005, 313.008, and 313.009; and |
|
(2) Subchapter D, Chapter 313. |
|
SECTION 19. To the extent of any conflict, this Act prevails |
|
over another Act of the 83rd Legislature, Regular Session, 2013, |
|
relating to nonsubstantive additions to and corrections in enacted |
|
codes. |
|
SECTION 20. (a) Except as provided by Subsection (b) of |
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this section, Chapter 313, Tax Code, as amended by this Act, applies |
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only to an agreement entered into under that chapter on or after the |
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effective date of this Act. An agreement entered into under that |
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chapter before the effective date of this Act is governed by the law |
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in effect on the date the agreement was entered into, and the former |
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law is continued in effect for that purpose. |
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(b) The repeal by this Act of Subchapter D, Chapter 313, Tax |
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Code, does not apply to a tax credit granted based on an application |
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for a tax credit submitted before the effective date of this Act. A |
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tax credit granted based on an application submitted before the |
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effective date of this Act is governed by the law in effect |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 21. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
|
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, 2013. |