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A BILL TO BE ENTITLED
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AN ACT
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relating to the repeal of 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. The following provisions of the Tax Code are |
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repealed: |
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(1) Section 312.0025; and |
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(2) Chapter 313. |
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SECTION 2. The heading to Section 42.2515, Education Code, |
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is amended to read as follows: |
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Sec. 42.2515. ADDITIONAL STATE AID FOR AD VALOREM TAX |
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CREDITS UNDER FORMER TEXAS ECONOMIC DEVELOPMENT ACT. |
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SECTION 3. Sections 403.302(d) and (m), Government Code, |
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are amended to read as follows: |
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(d) For the purposes of this section, "taxable value" means |
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the market value of all taxable property less: |
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(1) the total dollar amount of any residence homestead |
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exemptions lawfully granted under Section 11.13(b) or (c), Tax |
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Code, in the year that is the subject of the study for each school |
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district; |
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(2) one-half of the total dollar amount of any |
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residence homestead exemptions granted under Section 11.13(n), Tax |
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Code, in the year that is the subject of the study for each school |
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district; |
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(3) the total dollar amount of any exemptions granted |
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before May 31, 1993, within a reinvestment zone under agreements |
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authorized by Chapter 312, Tax Code; |
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(4) subject to Subsection (e), the total dollar amount |
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of any captured appraised value of property that: |
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(A) is within a reinvestment zone created on or |
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before May 31, 1999, or is proposed to be included within the |
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boundaries of a reinvestment zone as the boundaries of the zone and |
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the proposed portion of tax increment paid into the tax increment |
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fund by a school district are described in a written notification |
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provided by the municipality or the board of directors of the zone |
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to the governing bodies of the other taxing units in the manner |
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provided by former Section 311.003(e), Tax Code, before May 31, |
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1999, and within the boundaries of the zone as those boundaries |
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existed on September 1, 1999, including subsequent improvements to |
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the property regardless of when made; |
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(B) generates taxes paid into a tax increment |
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fund created under Chapter 311, Tax Code, under a reinvestment zone |
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financing plan approved under Section 311.011(d), Tax Code, on or |
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before September 1, 1999; and |
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(C) is eligible for tax increment financing under |
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Chapter 311, Tax Code; |
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(5) the total dollar amount of any captured appraised |
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value of property that: |
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(A) is within a reinvestment zone: |
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(i) created on or before December 31, 2008, |
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by a municipality with a population of less than 18,000; and |
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(ii) the project plan for which includes |
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the alteration, remodeling, repair, or reconstruction of a |
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structure that is included on the National Register of Historic |
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Places and requires that a portion of the tax increment of the zone |
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be used for the improvement or construction of related facilities |
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or for affordable housing; |
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(B) generates school district taxes that are paid |
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into a tax increment fund created under Chapter 311, Tax Code; and |
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(C) is eligible for tax increment financing under |
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Chapter 311, Tax Code; |
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(6) the total dollar amount of any exemptions granted |
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under Section 11.251 or 11.253, Tax Code; |
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(7) the difference between the comptroller's estimate |
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of the market value and the productivity value of land that |
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qualifies for appraisal on the basis of its productive capacity, |
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except that the productivity value estimated by the comptroller may |
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not exceed the fair market value of the land; |
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(8) the portion of the appraised value of residence |
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homesteads of individuals who receive a tax limitation under |
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Section 11.26, Tax Code, on which school district taxes are not |
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imposed in the year that is the subject of the study, calculated as |
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if the residence homesteads were appraised at the full value |
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required by law; |
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(9) a portion of the market value of property not |
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otherwise fully taxable by the district at market value because of: |
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(A) action required by statute or the |
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constitution of this state, other than Section 11.311, Tax Code, |
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that, if the tax rate adopted by the district is applied to it, |
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produces an amount equal to the difference between the tax that the |
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district would have imposed on the property if the property were |
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fully taxable at market value and the tax that the district is |
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actually authorized to impose on the property, if this subsection |
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does not otherwise require that portion to be deducted; or |
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(B) action taken by the district under Subchapter |
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B or C, Chapter 313, Tax Code, before the repeal [expiration] of |
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that [the] subchapter; |
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(10) the market value of all tangible personal |
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property, other than manufactured homes, owned by a family or |
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individual and not held or used for the production of income; |
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(11) the appraised value of property the collection of |
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delinquent taxes on which is deferred under Section 33.06, Tax |
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Code; |
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(12) the portion of the appraised value of property |
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the collection of delinquent taxes on which is deferred under |
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Section 33.065, Tax Code; and |
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(13) the amount by which the market value of a |
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residence homestead to which Section 23.23, Tax Code, applies |
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exceeds the appraised value of that property as calculated under |
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that section. |
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(m) Subsection (d)(9) does not apply to property that was |
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the subject of an application under former Subchapter B or C, |
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Chapter 313, Tax Code, made after May 1, 2009, that the comptroller |
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recommended should be disapproved. |
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SECTION 4. Section 2303.507, Government Code, is amended to |
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read as follows: |
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Sec. 2303.507. TAX INCREMENT FINANCING AND ABATEMENT[;
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LIMITATIONS ON APPRAISED VALUE]. Designation of an area as an |
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enterprise zone is also designation of the area as a reinvestment |
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zone for: |
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(1) tax increment financing under Chapter 311, Tax |
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Code; and |
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(2) tax abatement under Chapter 312, Tax Code[; and
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[(3)
limitations on appraised value under Chapter 313,
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Tax Code]. |
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SECTION 5. Section 23.03, Tax Code, is amended to read as |
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follows: |
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Sec. 23.03. COMPILATION OF LARGE PROPERTIES AND PROPERTIES |
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SUBJECT TO LIMITATION ON APPRAISED VALUE. Each year the chief |
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appraiser shall compile and send to the Texas [Department of] |
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Economic Development and Tourism Office a list of properties in the |
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appraisal district that in that tax year: |
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(1) have a market value of $100 million or more; or |
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(2) are subject to a limitation on appraised value |
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under former Chapter 313. |
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SECTION 6. Section 26.012(6), Tax Code, is amended to read |
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as follows: |
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(6) "Current total value" means the total taxable |
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value of property listed on the appraisal roll for the current year, |
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including all appraisal roll supplements and corrections as of the |
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date of the calculation, less the taxable value of property |
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exempted for the current tax year for the first time under Section |
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11.31 or 11.315, except that: |
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(A) the current total value for a school district |
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excludes: |
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(i) the total value of homesteads that |
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qualify for a tax limitation as provided by Section 11.26; and |
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(ii) new property value of property that is |
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subject to an agreement entered into under former Chapter 313; and |
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(B) the current total value for a county, |
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municipality, or junior college district excludes the total value |
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of homesteads that qualify for a tax limitation provided by Section |
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11.261. |
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SECTION 7. Section 151.359(k), Tax Code, is amended to read |
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as follows: |
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(k) A data center is not eligible to receive an exemption |
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under this section if the data center is subject to an agreement |
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limiting the appraised value of the data center's property under |
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former Subchapter B or C, Chapter 313. |
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SECTION 8. Section 151.3595(j), Tax Code, is amended to |
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read as follows: |
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(j) A data center is not eligible to receive an exemption |
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under this section if the data center is subject to an agreement |
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limiting the appraised value of the data center's property under |
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former Subchapter B or C, Chapter 313. |
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SECTION 9. Section 171.602(f), Tax Code, is amended to read |
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as follows: |
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(f) The comptroller may not issue a credit under this |
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section before the later of: |
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(1) September 1, 2018; or |
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(2) the expiration of an agreement under former |
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Chapter 313 regarding the clean energy project for which the credit |
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is issued. |
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SECTION 10. Section 312.403(a), Tax Code, is amended to |
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read as follows: |
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(a) In this section, "nuclear electric power generation" |
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means activities described in category 221113 of the 2002 North |
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American Industry Classification System [has the meaning assigned
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by Section 313.024(e)]. |
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SECTION 11. Chapter 320, Tax Code, is amended by adding |
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Section 320.002 to read as follows: |
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Sec. 320.002. SAVING PROVISIONS AFTER REPEAL OF CHAPTER |
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313. (a) An agreement limiting the appraised value of property |
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approved under Subchapter B or C, Chapter 313, before the repeal of |
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that subchapter continues in effect according to that subchapter as |
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that subchapter existed immediately before its repeal, and that law |
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is continued in effect for purposes of the agreement. |
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(b) The repeal of Subchapter D, Chapter 313, does not affect |
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a property owner's entitlement to a tax credit granted under that |
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subchapter if the property owner qualified for the tax credit |
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before the repeal of that subchapter. |
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SECTION 12. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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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, 2017. |