| 1 | 1 | | 81R1947 JD-F |
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| 2 | 2 | | By: Smith of Tarrant H.B. No. 146 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the implementation of a project plan or financing plan |
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| 8 | 8 | | for a reinvestment zone under the Tax Increment Financing Act and |
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| 9 | 9 | | the granting of exemptions from ad valorem taxes imposed on real |
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| 10 | 10 | | property in a reinvestment zone under that Act. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 311.010(b), Tax Code, is amended to read |
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| 13 | 13 | | as follows: |
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| 14 | 14 | | (b) The board of directors of a reinvestment zone and the |
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| 15 | 15 | | governing body of the municipality or county that creates a |
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| 16 | 16 | | reinvestment zone may each enter into agreements as the board or the |
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| 17 | 17 | | governing body considers necessary or convenient to implement the |
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| 18 | 18 | | project plan and reinvestment zone financing plan and achieve their |
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| 19 | 19 | | purposes. An agreement may provide for the regulation or |
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| 20 | 20 | | restriction of the use of land by imposing conditions, |
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| 21 | 21 | | restrictions, or covenants that run with the land. An agreement may |
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| 22 | 22 | | during the term of the agreement dedicate, pledge, or otherwise |
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| 23 | 23 | | provide for the use of revenue in the tax increment fund to pay any |
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| 24 | 24 | | project costs that benefit the reinvestment zone, including project |
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| 25 | 25 | | costs relating to the cost of buildings, schools, or other |
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| 26 | 26 | | educational facilities owned by or on behalf of a school district, |
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| 27 | 27 | | community college district, or other political subdivision of this |
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| 28 | 28 | | state, railroad or transit facilities, affordable housing, the |
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| 29 | 29 | | remediation of conditions that contaminate public or private land |
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| 30 | 30 | | or buildings, the preservation of the facade of a private or public |
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| 31 | 31 | | building, [or] the demolition of public or private buildings, or |
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| 32 | 32 | | the construction of a road, sidewalk, or other public |
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| 33 | 33 | | infrastructure in or out of the zone, including the cost of |
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| 34 | 34 | | acquiring the real property necessary for the construction of the |
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| 35 | 35 | | road, sidewalk, or other public infrastructure. An agreement may |
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| 36 | 36 | | dedicate revenue from the tax increment fund to pay the costs of |
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| 37 | 37 | | providing affordable housing or areas of public assembly in or out |
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| 38 | 38 | | of the zone. [An agreement may dedicate revenue from the tax |
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| 39 | 39 | | increment fund to pay a neighborhood enterprise association for |
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| 40 | 40 | | providing services or carrying out projects authorized under |
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| 41 | 41 | | Subchapters E and G, Chapter 2303, Government Code, in the zone. |
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| 42 | 42 | | The term of an agreement with a neighborhood enterprise association |
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| 43 | 43 | | may not exceed 10 years.] |
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| 44 | 44 | | SECTION 2. Section 311.013(g), Tax Code, is amended to read |
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| 45 | 45 | | as follows: |
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| 46 | 46 | | (g) Subject to the provisions of Section 311.0125, in lieu |
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| 47 | 47 | | of permitting a portion of its tax increment to be paid into the tax |
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| 48 | 48 | | increment fund, and notwithstanding the provisions of Section |
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| 49 | 49 | | 312.203, a taxing unit, including [other than] a municipality |
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| 50 | 50 | | [city], may elect to offer the owners of taxable real property in a |
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| 51 | 51 | | reinvestment zone created under this chapter an exemption from |
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| 52 | 52 | | taxation of all or part of the value of the property. To be |
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| 53 | 53 | | effective, an [Any] agreement to exempt real property [concerning |
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| 54 | 54 | | an exemption] from ad valorem taxes under this subsection must be |
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| 55 | 55 | | approved by: |
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| 56 | 56 | | (1) the board of directors of the reinvestment zone; |
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| 57 | 57 | | and |
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| 58 | 58 | | (2) the governing body of each taxing unit that |
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| 59 | 59 | | imposes taxes on real property in the reinvestment zone and |
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| 60 | 60 | | deposits or agrees to deposit any of its tax increment into the tax |
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| 61 | 61 | | increment fund for the zone [shall be executed in the manner and |
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| 62 | 62 | | subject to the limitations of Chapter 312; provided, however, the |
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| 63 | 63 | | property covered by the agreement need not be in a zone created |
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| 64 | 64 | | pursuant to Chapter 312. A taxing unit may not offer a tax |
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| 65 | 65 | | abatement agreement to property owners in the zone after it has |
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| 66 | 66 | | entered into an agreement that its tax increments would be paid into |
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| 67 | 67 | | the tax increment fund pursuant to Subsection (f)]. |
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| 68 | 68 | | SECTION 3. This Act takes effect immediately if it receives |
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| 69 | 69 | | a vote of two-thirds of all the members elected to each house, as |
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| 70 | 70 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 71 | 71 | | Act does not receive the vote necessary for immediate effect, this |
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| 72 | 72 | | Act takes effect September 1, 2009. |
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