By: Zaffirini S.B. No. 1779
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to ad valorem tax incentives for the recycling of water
  used in oil or gas drilling or production.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 311.010(b), Tax Code, is amended to read
  as follows:
         (b)  The board of directors of a reinvestment zone and the
  governing body of the municipality or county that creates a
  reinvestment zone may each enter into agreements as the board or the
  governing body considers necessary or convenient to implement the
  project plan and reinvestment zone financing plan and achieve their
  purposes.  An agreement may provide for the regulation or
  restriction of the use of land by imposing conditions,
  restrictions, or covenants that run with the land.  An agreement may
  during the term of the agreement dedicate, pledge, or otherwise
  provide for the use of revenue in the tax increment fund to pay any
  project costs that benefit the reinvestment zone, including project
  costs relating to the cost of buildings, schools, or other
  educational facilities owned by or on behalf of a school district,
  community college district, or other political subdivision of this
  state, railroad or transit facilities, facilities to recycle water
  used in oil or gas drilling or production, affordable housing, the
  remediation of conditions that contaminate public or private land
  or buildings, the preservation of the facade of a private or public
  building, the demolition of public or private buildings, or the
  construction of a road, sidewalk, or other public infrastructure in
  or out of the zone, including the cost of acquiring the real
  property necessary for the construction of the road, sidewalk, or
  other public infrastructure.  An agreement may dedicate revenue
  from the tax increment fund to pay the costs of providing affordable
  housing or areas of public assembly in or out of the zone.
         SECTION 2.  Section 312.204(a), Tax Code, is amended to read
  as follows:
         (a)  The governing body of a municipality eligible to enter
  into tax abatement agreements under Section 312.002 may agree in
  writing with the owner of taxable real property that is located in a
  reinvestment zone, but that is not in an improvement project
  financed by tax increment bonds, to exempt from taxation a portion
  of the value of the real property or of tangible personal property
  located on the real property, or both, for a period not to exceed 10
  years, on the condition that the owner of the property make specific
  improvements or repairs to the property, including the construction
  of a facility to recycle water used in oil or gas drilling or
  production.  The governing body of an eligible municipality may
  agree in writing with the owner of a leasehold interest in
  tax-exempt real property that is located in a reinvestment zone,
  but that is not in an improvement project financed by tax increment
  bonds, to exempt a portion of the value of property subject to ad
  valorem taxation, including the leasehold interest, improvements,
  or tangible personal property located on the real property, for a
  period not to exceed 10 years, on the condition that the owner of
  the leasehold interest make specific improvements or repairs to the
  real property, including the construction of a facility to recycle
  water used in oil or gas drilling or production.  A tax abatement
  agreement under this section is subject to the rights of holders of
  outstanding bonds of the municipality.  An agreement exempting
  taxable real property or leasehold interests or improvements on
  tax-exempt real property may provide for the exemption of such
  taxable interests in each year covered by the agreement only to the
  extent its value for that year exceeds its value for the year in
  which the agreement is executed.  An agreement exempting tangible
  personal property located on taxable or tax-exempt real property
  may provide for the exemption of tangible personal property located
  on the real property in each year covered by the agreement other
  than tangible personal property that was located on the real
  property at any time before the period covered by the agreement with
  the municipality, including inventory and supplies.  In a
  municipality that has a comprehensive zoning ordinance, an
  improvement, repair, development, or redevelopment taking place
  under an agreement under this section must conform to the
  comprehensive zoning ordinance.
         SECTION 3.  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.