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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a property owner to contest the unequal |
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appraisal for ad valorem tax purposes of property that is subject to |
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an agreement to provide certain relief from ad valorem taxation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 312.205(a), Tax Code, is amended to read |
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as follows: |
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(a) An agreement made under Section 312.204 or 312.211 must: |
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(1) list the kind, number, and location of all |
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proposed improvements of the property; |
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(2) provide access to and authorize inspection of the |
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property by municipal employees to ensure that the improvements or |
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repairs are made according to the specifications and conditions of |
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the agreement; |
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(3) limit the uses of the property consistent with the |
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general purpose of encouraging development or redevelopment of the |
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zone during the period that property tax exemptions are in effect; |
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(4) provide for recapturing property tax revenue lost |
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as a result of the agreement if the owner of the property fails to |
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make the improvements or repairs as provided by the agreement; |
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(5) contain each term agreed to by the owner of the |
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property; |
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(6) require the owner of the property to certify |
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annually to the governing body of each taxing unit that the owner is |
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in compliance with each applicable term of the agreement; [and] |
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(7) provide that the governing body of the |
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municipality may cancel or modify the agreement if the property |
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owner fails to comply with the agreement; and |
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(8) include either: |
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(A) a waiver by the property owner of the right to |
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protest before an appraisal review board and the right to contest in |
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any court the unequal appraisal of property subject to the |
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agreement for a tax year in which a portion of the property is |
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exempt from taxation under the agreement; or |
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(B) provisions for the recapture of all or a |
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portion of the property tax revenue lost as a result of the |
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agreement if the appraised value of the property subject to the |
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agreement does not attain a value specified in the agreement for a |
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year covered by the agreement and payment of a penalty or interest, |
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or both, on that recaptured property tax revenue. |
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SECTION 2. Section 313.027(f), Tax Code, is amended to read |
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as follows: |
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(f) In addition, the agreement: |
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(1) must incorporate each relevant provision of this |
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subchapter and, to the extent necessary, include provisions for the |
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protection of future school district revenues through the |
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adjustment of the minimum valuations, the payment of revenue |
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offsets, and other mechanisms agreed to by the property owner and |
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the school district; |
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(2) may provide that the property owner will protect |
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the school district in the event the district incurs extraordinary |
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education-related expenses related to the project that are not |
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directly funded in state aid formulas, including expenses for the |
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purchase of portable classrooms and the hiring of additional |
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personnel to accommodate a temporary increase in student enrollment |
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attributable to the project; |
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(3) must require the property owner to maintain a |
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viable presence in the school district for at least five years after |
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the date the limitation on appraised value of the owner's property |
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expires; |
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(4) must provide for the termination of the agreement, |
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the recapture of ad valorem tax revenue lost as a result of the |
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agreement if the owner of the property fails to comply with the |
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terms of the agreement, and payment of a penalty or interest, or |
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both, on that recaptured ad valorem tax revenue; |
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(5) may specify any conditions the occurrence of which |
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will require the district and the property owner to renegotiate all |
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or any part of the agreement; |
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(6) must specify the ad valorem tax years covered by |
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the agreement; [and] |
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(7) must be in a form approved by the comptroller; and |
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(8) must include either: |
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(A) a waiver by the property owner of the right to |
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protest before an appraisal review board and the right to contest in |
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any court the unequal appraisal of property subject to the |
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agreement for a tax year in which a portion of the property is |
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exempt from taxation under the agreement; or |
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(B) provisions for the recapture of all or a |
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portion of the property tax revenue lost as a result of the |
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agreement if the appraised value of the property subject to the |
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agreement does not attain a value specified in the agreement for a |
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year covered by the agreement and payment of a penalty or interest, |
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or both, on that recaptured property tax revenue. |
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SECTION 3. The changes in law made by this Act apply only to |
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an agreement entered into by a taxing unit under Chapter 312 or 313, |
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Tax Code, on or after the effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2017. |