|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
|
relating to the authority of the board of directors of a tax |
|
increment financing reinvestment zone to use money in the tax |
|
increment fund established for the zone to compensate certain |
|
homeowners for the increase in taxes associated with the zone. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 311.002(1), Tax Code, is amended to read |
|
as follows: |
|
(1) "Project costs" means the expenditures made or |
|
estimated to be made and monetary obligations incurred or estimated |
|
to be incurred by the municipality or county designating a |
|
reinvestment zone that are listed in the project plan as costs of |
|
public works, public improvements, programs, or other projects |
|
benefiting the zone, plus other costs incidental to those |
|
expenditures and obligations. "Project costs" include: |
|
(A) capital costs, including the actual costs of |
|
the acquisition and construction of public works, public |
|
improvements, new buildings, structures, and fixtures; the actual |
|
costs of the acquisition, demolition, alteration, remodeling, |
|
repair, or reconstruction of existing buildings, structures, and |
|
fixtures; the actual costs of the remediation of conditions that |
|
contaminate public or private land or buildings; the actual costs |
|
of the preservation of the facade of a public or private building; |
|
the actual costs of the demolition of public or private buildings; |
|
and the actual costs of the acquisition of land and equipment and |
|
the clearing and grading of land; |
|
(B) financing costs, including all interest paid |
|
to holders of evidences of indebtedness or other obligations issued |
|
to pay for project costs and any premium paid over the principal |
|
amount of the obligations because of the redemption of the |
|
obligations before maturity; |
|
(C) real property assembly costs; |
|
(D) professional service costs, including those |
|
incurred for architectural, planning, engineering, and legal |
|
advice and services; |
|
(E) imputed administrative costs, including |
|
reasonable charges for the time spent by employees of the |
|
municipality or county in connection with the implementation of a |
|
project plan; |
|
(F) relocation costs; |
|
(G) organizational costs, including the costs of |
|
conducting environmental impact studies or other studies, the cost |
|
of publicizing the creation of the zone, and the cost of |
|
implementing the project plan for the zone; |
|
(H) interest before and during construction and |
|
for one year after completion of construction, whether or not |
|
capitalized; |
|
(I) the cost of operating the reinvestment zone |
|
and project facilities; |
|
(J) the amount of any contributions made by the |
|
municipality or county from general revenue for the implementation |
|
of the project plan; |
|
(K) the costs of school buildings, other |
|
educational buildings, other educational facilities, or other |
|
buildings owned by or on behalf of a school district, community |
|
college district, or other political subdivision of this state; |
|
[and] |
|
(L) payments made at the discretion of the |
|
governing body of the municipality or county that the governing |
|
body finds necessary or convenient to the creation of the zone or to |
|
the implementation of the project plans for the zone; and |
|
(M) payments made as part of a reinvestment zone |
|
stability program established under Section 311.0111. |
|
SECTION 2. Chapter 311, Tax Code, is amended by adding |
|
Section 311.0111 to read as follows: |
|
Sec. 311.0111. REINVESTMENT ZONE STABILITY PROGRAM. (a) |
|
In this section: |
|
(1) "Legacy homeowner" means the owner of a residence |
|
homestead located in a reinvestment zone who has continuously |
|
resided in and received an exemption under Section 11.13 for the |
|
homestead for at least seven years preceding the date the governing |
|
body of the county or municipality designated the zone in which the |
|
homestead is located. |
|
(2) "Program" means a reinvestment zone stability |
|
program established under this section. |
|
(3) "Residence homestead" has the meaning assigned by |
|
Section 11.13. |
|
(b) The project plan prepared and adopted by the board of |
|
directors of a reinvestment zone under Section 311.011 may |
|
authorize the board of directors to establish a reinvestment zone |
|
stability program, the purpose of which is to ensure that all |
|
residents of the zone benefit from its designation. The governing |
|
body of the county or municipality that designated the zone and any |
|
affiliated community organizations may participate in the |
|
development of the program. As part of a program established under |
|
this section, the board may dedicate, pledge, or otherwise provide |
|
for the use of money in the tax increment fund established for the |
|
zone to prevent homeowner displacement by providing annual payments |
|
on behalf of legacy homeowners to offset the increase in ad valorem |
|
taxes imposed on the residence homesteads of those homeowners that |
|
is attributable to the increase in property values associated with |
|
the development or redevelopment of property in the zone. |
|
(c) If the project plan for a reinvestment zone authorizes |
|
annual payments on behalf of legacy homeowners, the plan must |
|
provide that: |
|
(1) the amount of an annual payment made under the |
|
program to a legacy homeowner may not exceed the amount determined |
|
for that homeowner under Subsection (d); |
|
(2) the period of time for which annual payments may be |
|
made on behalf of a legacy homeowner may not exceed 10 years; and |
|
(3) a notice must be provided each year to each legacy |
|
homeowner on whose behalf an annual payment is made under the |
|
program regarding the terms of the program and the period of time |
|
for which payments may continue to be made on behalf of the legacy |
|
homeowner under the program. |
|
(d) The maximum amount of an annual payment that may be made |
|
on behalf of a legacy homeowner for a tax year is equal to the |
|
positive difference, if any, between the following amounts: |
|
(1) the ad valorem taxes due on the homeowner's |
|
homestead for that tax year; and |
|
(2) the ad valorem taxes due on the homeowner's |
|
homestead for the tax year in which the reinvestment zone in which |
|
the homestead is located was designated. |
|
SECTION 3. This Act takes effect September 1, 2023. |
|
|
|
* * * * * |