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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of certain taxing units to enter into an |
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agreement to abate ad valorem taxes imposed on an individual's |
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residence homestead that is located in a reinvestment zone. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 312.002(a) and (f), Tax Code, are |
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amended to read as follows: |
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(a) A taxing unit may not enter into a tax abatement |
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agreement under this chapter and the governing body of a |
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municipality or county may not designate an area as a reinvestment |
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zone unless the governing body has established guidelines and |
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criteria governing tax abatement agreements by the taxing unit and |
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a resolution stating that the taxing unit elects to become eligible |
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to participate in tax abatement. The guidelines applicable to |
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property other than property described by Section 312.009(b) or |
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312.211(a) must provide for the availability of tax abatement for |
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both new facilities and structures and for the expansion or |
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modernization of existing facilities and structures. |
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(f) Except as otherwise provided by this subsection, |
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on [On] or after September 1, 2001, a school district may not enter |
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into a tax abatement agreement under this chapter. A school |
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district may enter into a tax abatement agreement under Section |
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312.009. |
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SECTION 2. Subchapter A, Chapter 312, Tax Code, is amended |
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by adding Section 312.009 to read as follows: |
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Sec. 312.009. RESIDENCE HOMESTEAD TAX ABATEMENT AGREEMENT |
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BY TAXING UNIT OTHER THAN MUNICIPALITY OR COUNTY. (a) In this |
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section, "residence homestead" has the meaning assigned by Section |
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11.13. |
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(b) This section applies only to a property: |
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(1) that is located in a reinvestment zone designated |
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under this chapter by any taxing unit; and |
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(2) that the property owner occupies as the property |
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owner's residence homestead for the first time not earlier than one |
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year before the date the property owner enters into a tax abatement |
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agreement under this section. |
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(c) Notwithstanding any other provision of this chapter, a |
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taxing unit other than a municipality or county that is eligible to |
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enter into a tax abatement agreement under Section 312.002 or a |
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school district that meets the eligibility requirements of that |
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section for a taxing unit may enter into a tax abatement agreement |
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with the owner of a property to which this section applies to exempt |
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from taxation all or a portion of the value of the property: |
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(1) for a period not to exceed 10 years; and |
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(2) on the condition that the owner of the property |
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spend an amount specified in the agreement, that may not be less |
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than $500, to make improvements or repairs to the property during |
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the first year of the agreement. |
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(d) An agreement made under this section must: |
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(1) provide access to and authorize inspection of the |
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property by the taxing unit to ensure that the improvements or |
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repairs are made as provided by the agreement; |
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(2) 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; and |
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(3) provide that the governing body of the taxing unit |
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may cancel or modify the agreement if the property owner fails to |
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comply with the agreement. |
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(e) The expiration of the designation of a reinvestment zone |
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under this chapter does not affect an existing tax abatement |
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agreement entered into under this section. |
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SECTION 3. This Act takes effect September 1, 2025. |