If enacted, SB650 would substantially modify state laws regarding tax increment financing and reinvestment zones. The bill introduces a requirement for municipalities to provide evidence to the attorney general regarding the designation of a reinvestment zone and the legal sufficiency of that evidence. Municipalities would also be required to adhere to new notification protocols for bond issuance, which is expected to result in increased transparency and community engagement during the planning stages of development projects.
Summary
SB650, relating to tax increment financing, seeks to amend existing provisions to facilitate the creation and governance of reinvestment zones. The legislation aims to improve local governmental tools for economic development by allowing municipalities to designate areas in need of revitalization and allocate tax increment funds accordingly. The bill outlines specific criteria for designating reinvestment zones, emphasizing the importance of addressing blighted conditions that could impede local growth and provide potential benefits to communities. This is intended to address issues related to housing, public infrastructure, and educational facilities within designated areas.
Contention
Notably, SB650 has raised some concerns regarding the balance of local governance and oversight by state authorities. Critics argue that the involvement of the attorney general might create additional bureaucratic hurdles for municipalities trying to access vital funding for projects. Moreover, the definitions of terms such as 'unproductive' and 'blighted' are to be determined by the attorney general, which could lead to inconsistencies in how different regions interpret these criteria and their associated impacts on local economies.
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.
Relating to the duty of a school district to enter into an ad valorem tax abatement agreement under the Property Redevelopment and Tax Abatement Act for certain property.
Relating to the calculation of certain ad valorem tax rates of a taxing unit for a year in which a property owner provides notice that the owner intends to appeal an order of an appraisal review board determining a protest by the owner regarding the appraisal of the owner's property.
Relating to the approval and creation of the Williamson County Development District No. 1; and to the administration, powers, duties, operation, and financing of the district, including the authority to impose an assessment, a tax, and issue bonds.
Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.
Relating to certain acts and proceedings of certain local governments, including those related to tax increment financing, and the validity of certain acts and proceedings.