Texas 2009 - 81st Regular

Texas House Bill HB1770 Compare Versions

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1	1	H.B. No. 1770
2	2
3	3
4	4	AN ACT
5	5	relating to the Tax Increment Financing Act.
6	6	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	7	SECTION 1. Section 311.003(a), Tax Code, is amended to read
8	8	as follows:
9	9	(a) The governing body of a county by order may designate a
10	10	contiguous geographic area in the county and the governing body of a
11	11	municipality by ordinance [or the governing body of a county by
12	12	order] may designate a contiguous or noncontiguous geographic area
13	13	that is in the corporate limits of the municipality, in the
14	14	extraterritorial jurisdiction of the municipality, or in both [in
15	15	the jurisdiction of the municipality or county] to be a
16	16	reinvestment zone to promote development or redevelopment of the
17	17	area if the governing body determines that development or
18	18	redevelopment would not occur solely through private investment in
19	19	the reasonably foreseeable future. The designation of an area that
20	20	is wholly or partly located in the extraterritorial jurisdiction of
21	21	a municipality is not affected by a subsequent annexation of real
22	22	property in the reinvestment zone by the municipality.
23	23	SECTION 2. Section 311.006(a), Tax Code, is amended to read
24	24	as follows:
25	25	(a) A municipality may not create a reinvestment zone if:
26	26	(1) more than 10 percent of the property in the
27	27	proposed zone, excluding property that is publicly owned, is used
28	28	for residential purposes; or
29	29	(2) the total appraised value of taxable real property
30	30	in the proposed zone and in existing reinvestment zones exceeds:
31	31	(A) 20 percent of the total appraised value of
32	32	taxable real property in the municipality and in the industrial
33	33	districts created by the municipality, if the municipality is the
34	34	county seat of a county:
35	35	(i) that is adjacent to a county with a
36	36	population of 3.3 million or more; and
37	37	(ii) in which a planned community is
38	38	located that has 20,000 or more acres of land, that was originally
39	39	established under the Urban Growth and New Community Development
40	40	Act of 1970 (42 U.S.C. Section 4501 et seq.), and that is subject to
41	41	restrictive covenants containing ad valorem or annual variable
42	42	budget-based assessments on real property; or
43	43	(B) 15 percent of the total appraised value of
44	44	taxable real property in the municipality and in the industrial
45	45	districts created by the municipality, if Paragraph (A) does not
46	46	apply to the municipality.
47	47	SECTION 3. Section 311.012(a), Tax Code, is amended to read
48	48	as follows:
49	49	(a) The amount of a taxing unit's tax increment for a year is
50	50	the amount of property taxes levied and assessed by the unit for
51	51	that year on the captured appraised value of real property taxable
52	52	by the unit and located in a reinvestment zone or the amount of
53	53	property taxes levied and collected by the unit for that year on the
54	54	captured appraised value of real property taxable by the unit and
55	55	located in a reinvestment zone. The governing body of a taxing unit
56	56	shall determine which of the methods specified by this subsection
57	57	is used to calculate the amount of the unit's tax increment.
58	58	SECTION 4. Sections 311.013(c) and (i), Tax Code, are
59	59	amended to read as follows:
60	60	(c) Notwithstanding any termination of the reinvestment
61	61	zone under Section 311.017(a), a [A] taxing unit shall make a
62	62	payment required by Subsection (b) not later than the 90th day after
63	63	the delinquency date for the unit's property taxes. A delinquent
64	64	payment incurs a penalty of five percent of the amount delinquent
65	65	and accrues interest at an annual rate of 10 percent.
66	66	(i) Notwithstanding Subsection (c) and Section 311.012(a),
67	67	a taxing unit is not required to pay into a tax increment fund the
68	68	applicable portion of a tax increment attributable to delinquent
69	69	taxes until those taxes are collected.
70	70	SECTION 5. Section 311.017, Tax Code, is amended by amending
71	71	Subsection (a) and adding Subsection (a-1) to read as follows:
72	72	(a) A reinvestment zone terminates on the earlier of:
73	73	(1) the termination date designated in the ordinance
74	74	or order, as applicable, creating the zone or an earlier or later
75	75	termination date designated by an ordinance or order adopted
76	76	subsequent to the ordinance or order creating the zone; or
77	77	(2) the date on which all project costs, tax increment
78	78	bonds and interest on those bonds, and other obligations have been
79	79	paid in full.
80	80	(a-1) Notwithstanding the designation of a later
81	81	termination date under Subsection (a), a taxing unit that taxes
82	82	real property located in the reinvestment zone, other than the
83	83	municipality or county that created the zone, is not required to pay
84	84	any of its tax increment into the tax increment fund for the zone
85	85	after the termination date designated in the ordinance or order
86	86	creating the zone unless the governing body of the taxing unit
87	87	enters into an agreement to do so with the governing body of the
88	88	municipality or county that created the zone.
89	89	SECTION 6. Section 311.006(a), Tax Code, as amended by this
90	90	Act, applies only to a reinvestment zone created on or after the
91	91	effective date of this Act. The creation of a reinvestment zone
92	92	before the effective date of this Act is covered by the law in
93	93	effect immediately before the effective date of this Act, and the
94	94	former law is continued in effect for that purpose.
95	95	SECTION 7. (a) The legislature validates and confirms all
96	96	governmental acts and proceedings of a municipality or county that
97	97	were taken before the effective date of this Act and relate to or
98	98	are associated with the extension of the term of a reinvestment zone
99	99	created by the municipality or county under Chapter 311, Tax Code,
100	100	as of the dates on which they occurred. The acts and proceedings
101	101	may not be held invalid because they were not in accordance with
102	102	Chapter 311, Tax Code, or other law.
103	103	(b) Subsection (a) of this section does not apply to any
104	104	matter that on the effective date of this Act:
105	105	(1) is involved in litigation if the litigation
106	106	ultimately results in the matter being held invalid by a final
107	107	judgment of a court; or
108	108	(2) has been held invalid by a final judgment of a
109	109	court.
110	110	SECTION 8. This Act applies only to a taxing unit's tax
111	111	increment for a period occurring on or after the effective date of
112	112	this Act. A taxing unit's tax increment for a period occurring
113	113	before the effective date of this Act is governed by the law in
114	114	effect for such period, and the former law is continued in effect
115	115	for that purpose.
116	116	SECTION 9. This Act takes effect immediately if it receives
117	117	a vote of two-thirds of all the members elected to each house, as
118	118	provided by Section 39, Article III, Texas Constitution. If this
119	119	Act does not receive the vote necessary for immediate effect, this
120	120	Act takes effect September 1, 2009.
121	121	______________________________ ______________________________
122	122	President of the Senate Speaker of the House
123	123	I certify that H.B. No. 1770 was passed by the House on April
124	124	28, 2009, by the following vote: Yeas 148, Nays 1, 1 present, not
125	125	voting; and that the House concurred in Senate amendments to H.B.
126	126	No. 1770 on May 29, 2009, by the following vote: Yeas 123, Nays 16,
127	127	1 present, not voting.
128	128	______________________________
129	129	Chief Clerk of the House
130	130	I certify that H.B. No. 1770 was passed by the Senate, with
131	131	amendments, on May 25, 2009, by the following vote: Yeas 30, Nays
132	132	1.
133	133	______________________________
134	134	Secretary of the Senate
135	135	APPROVED: __________________
136	136	Date
137	137	__________________
138	138	Governor