Relating to the authority of certain municipalities to extend the termination date for a reinvestment zone created under the Tax Increment Financing Act.
Impact
If enacted, this bill could significantly impact local economic development initiatives by providing certain municipalities with the flexibility to retain reinvestment zones for up to 20 years beyond their initially designated termination date. This extended timeframe may enable local governments to better plan and finance long-term development projects, attracting investors and fostering economic growth in targeted areas. The bill aims to support cities that might otherwise lose the benefits of these zones due to a lack of time to utilize the allocated tax increment funds for redevelopment.
Summary
House Bill 1004 proposes to amend the Tax Code by granting specific municipalities the authority to extend the termination date of reinvestment zones established under the Tax Increment Financing Act. The bill targets cities with populations of 195,000 or more, which also serve as county seats in counties with populations of 245,000 or less. This legislative change would allow these municipalities to adopt an ordinance designating a later termination date for their reinvestment zones, lifting limitations previously set in the original ordinances.
Contention
Notably, there could be points of contention regarding this bill. Proponents may argue that it empowers municipalities to make better use of reinvestment zones, thus stimulating local economies and contributing to revitalization efforts. On the other hand, critics might raise concerns about the transparency and accountability of extending such zones, fearing that it could lead to disproportionate advantages for larger municipalities at the expense of smaller communities, which may not have similar provisions.
Implementation
The act is designed to take effect immediately upon receiving a two-thirds majority vote from both houses of the legislature. Should it not meet this threshold, it will come into effect on September 1, 2009. This provision underscores the urgency and importance associated with enabling municipalities to have greater control over their economic development strategies.
Same As
Relating to the authority of certain municipalities to extend the termination date for a reinvestment zone created under the Tax Increment Financing Act.
TX SB1105
Identical
Relating to the authority of certain municipalities to extend the termination date for a reinvestment zone created under the Tax Increment Financing 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.
Relating to the calculation of ad valorem tax rates by certain taxing units that participate in one or more reinvestment zones for tax increment financing.
Relating to the powers and duties of Port Freeport; limiting the authority of certain municipalities to regulate land use by Port Freeport; and the creation of a reinvestment zone containing property owned by Port Freeport.
Relating to agreements authorizing a limitation on taxable value of certain property to provide for the creation of jobs and the generation of state and local tax revenue; authorizing fees; authorizing penalties.