Texas 2009 - 81st Regular

Texas House Bill HB1853 Compare Versions

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1	1	81R5301 SMH-D
2	2	By: Darby H.B. No. 1853
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the authorization of school district ad valorem tax
8	8	incentives for historic redevelopment and economic development.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle B, Title 3, Tax Code, is amended by
11	11	adding Chapter 314 to read as follows:
12	12	CHAPTER 314. HISTORIC REDEVELOPMENT AND ECONOMIC DEVELOPMENT ACT
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 314.001. SHORT TITLE. This chapter may be cited as the
15	15	Historic Redevelopment and Economic Development Act.
16	16	Sec. 314.002. FINDINGS. The legislature finds that:
17	17	(1) the various economic development programs allowed
18	18	by the State of Texas stimulate community growth and
19	19	revitalization;
20	20	(2) the State of Texas supports sustainable
21	21	development practices that encourage reinvestment in historic or
22	22	blighted downtowns, commercial corridors, and neighborhoods that
23	23	are identified in a municipality's comprehensive plan;
24	24	(3) historic rehabilitation and other revitalization
25	25	projects often require overinvestment as compared to the
26	26	development of raw land, and it is in the interest of all taxing
27	27	units to facilitate redevelopment rather than sprawl;
28	28	(4) municipalities and counties are willing to forgo
29	29	marginal gains to their ad valorem tax collections, but it is
30	30	imperative that school districts have the opportunity to
31	31	participate in the revitalization of their communities because
32	32	school district ad valorem taxes sometimes constitute the majority
33	33	of the ad valorem taxes imposed on property;
34	34	(5) a school district's participation in the
35	35	revitalization of the district's community must not adversely
36	36	affect the district's annual funding from the State of Texas; and
37	37	(6) the short-term exemption of property from ad
38	38	valorem taxation under this chapter is more than offset by the
39	39	long-term increase in ad valorem taxes generated from the
40	40	redevelopment and economic development activities encouraged by
41	41	this chapter.
42	42	Sec. 314.003. PURPOSES. The purposes of this chapter are
43	43	to:
44	44	(1) encourage capital investment in historic and
45	45	blighted areas of a community that are traditionally neglected due
46	46	to the overinvestment that is required to use existing structures;
47	47	(2) assist local governments in diversifying the
48	48	economic opportunities in their communities;
49	49	(3) prevent the continued deterioration of blighted
50	50	areas of a community that will ultimately reduce the valuation of
51	51	property in the community for ad valorem tax purposes;
52	52	(4) enable local government officials and economic
53	53	development professionals to reduce the increased costs associated
54	54	with urban sprawl by authorizing redevelopment and economic
55	55	development incentives that will encourage reinvestment in the
56	56	traditional core of a municipality so as to allow all government
57	57	entities to use existing infrastructure;
58	58	(5) strengthen and improve the overall performance of
59	59	municipalities, counties, and school districts by allowing them to
60	60	promote capital investments in all sectors of their community;
61	61	(6) expand and enlarge the ad valorem property tax
62	62	base of this state; and
63	63	(7) enhance the redevelopment and economic
64	64	development efforts of this state and local governments by
65	65	providing school districts with an effective local redevelopment
66	66	and economic development option.
67	67	Sec. 314.004. LEGISLATIVE INTENT. It is the intent of the
68	68	legislature in enacting this chapter that:
69	69	(1) redevelopment and economic development decisions
70	70	should occur at the local level and be consistent with identifiable
71	71	community and statewide redevelopment and economic development
72	72	goals;
73	73	(2) this chapter should not be construed or
74	74	interpreted to allow:
75	75	(A) property owners to pool investments to create
76	76	sufficiently large investments to qualify for an ad valorem tax
77	77	benefit or financial benefit provided by this chapter; or
78	78	(B) an applicant for an ad valorem tax benefit or
79	79	financial benefit provided by this chapter to assert that jobs will
80	80	be eliminated or historic properties will be destroyed if certain
81	81	investments are not made if the assertion is not true; and
82	82	(3) in implementing this chapter, school districts
83	83	should:
84	84	(A) strictly interpret the criteria and
85	85	selection guidelines provided by this chapter; and
86	86	(B) approve only those applications for an ad
87	87	valorem tax benefit or financial benefit provided by this chapter
88	88	that:
89	89	(i) enhance the local community;
90	90	(ii) improve the local public education
91	91	system;
92	92	(iii) create reinvestment in areas that
93	93	have traditionally been neglected;
94	94	(iv) encourage the use of existing
95	95	infrastructure and reduce the need for the creation of new
96	96	infrastructure;
97	97	(v) assist in creating opportunities in
98	98	areas of a community that are identified as historic or blighted and
99	99	that traditionally are populated by the less advantaged population
100	100	of the community; and
101	101	(vi) advance the redevelopment and economic
102	102	development goals of the State of Texas or a municipality's
103	103	comprehensive plan.
104	104	Sec. 314.005. DEFINITIONS. Unless this chapter defines a
105	105	word or phrase used in this chapter, Section 1.04 or any other
106	106	section of Title 1 or this title that defines the word or phrase or
107	107	ascribes a meaning to the word or phrase applies to the word or
108	108	phrase used in this chapter.
109	109	Sec. 314.006. IMPOSITION OF IMPACT FEE. (a) In this
110	110	section, "impact fee" means a charge or assessment imposed against
111	111	a qualified property, as defined by Section 314.051, in order to
112	112	generate revenue for funding or recouping the costs of capital
113	113	improvements or facility expansions for water, wastewater, or storm
114	114	water services or for roads necessitated by or attributable to
115	115	property that receives an exemption from taxation under this
116	116	chapter.
117	117	(b) Notwithstanding any other law, including Chapter 395,
118	118	Local Government Code, a municipality or county may impose and
119	119	collect from the owner of a qualified property a reasonable impact
120	120	fee under this section to pay for the cost of providing improvements
121	121	associated with or attributable to property that receives an
122	122	exemption from taxation under this chapter.
123	123	[Sections 314.007-314.050 reserved for expansion]
124	124	SUBCHAPTER B. EXEMPTION FROM TAXATION OF CERTAIN PROPERTY USED FOR
125	125	HISTORIC REVITALIZATION OR ECONOMIC DEVELOPMENT
126	126	Sec. 314.051. DEFINITIONS. In this subchapter:
127	127	(1) "Qualified investment" means tangible personal
128	128	property that is located in an area in a municipality that is
129	129	defined as a historic or blighted downtown, commercial corridor, or
130	130	neighborhood by a municipality's comprehensive plan.
131	131	(2) "Qualified property" means:
132	132	(A) land that is located in an area designated by
133	133	the governing body of the municipality as a reinvestment zone under
134	134	Chapter 311 or 312 or as an enterprise zone under Chapter 2303,
135	135	Government Code, and:
136	136	(i) that is identified by a municipality's
137	137	comprehensive plan as a historic or blighted downtown, commercial
138	138	area, or corridor; or
139	139	(ii) on which a person proposes to
140	140	construct a new building or erect or affix a new improvement that
141	141	does not exist and is consistent with the historic character of the
142	142	area; and
143	143	(B) a building or other improvement located on
144	144	land described by Paragraph (A).
145	145	Sec. 314.052. APPLICABILITY. This subchapter applies to
146	146	each school district in this state.
147	147	Sec. 314.053. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT FOR
148	148	CERTAIN EXEMPTION PERCENTAGES. (a) An agreement under this
149	149	subchapter to exempt a portion of the value of qualified property
150	150	from taxation may exempt the following percentages of the
151	151	difference between the appraised value of the property for a tax
152	152	year and the appraised value of the property for the tax year in
153	153	which the agreement is entered into if the owner of the property
154	154	makes a qualified investment in at least the following amount:
155	155	EXEMPTION PERCENTAGE MINIMUM QUALIFIED INVESTMENT
156	156	100 percent $1 million
157	157	85 percent $500,000
158	158	75 percent $250,000
159	159	50 percent $100,000
160	160	25 percent $25,000
161	161	(b) An owner of qualified property may not receive an
162	162	exemption under this subchapter for the property for a period of
163	163	more than 10 years.
164	164	Sec. 314.054. APPLICATION; ACTION ON APPLICATION. (a) The
165	165	owner of qualified property may apply to the governing body of the
166	166	school district in which the property is located for an exemption
167	167	from taxation of a portion of the value of the person's qualified
168	168	property for school district maintenance and operations ad valorem
169	169	tax purposes. An application must be made on the form prescribed by
170	170	the comptroller and include the information required by the
171	171	comptroller, and it must be accompanied by:
172	172	(1) the application fee established by the governing
173	173	body of the school district;
174	174	(2) information sufficient to show that the property
175	175	identified in the application as qualified property meets the
176	176	applicable criteria listed in Sections 314.004(3), 314.051, and
177	177	314.053 and this section; and
178	178	(3) information relating to each applicable criterion
179	179	listed in Sections 314.004(3), 314.051, and 314.053 and this
180	180	section.
181	181	(b) The governing body of a school district is not required
182	182	to consider an application that is filed with the governing body
183	183	under Subsection (a). If the governing body of the school district
184	184	does elect to consider an application, the governing body shall
185	185	work with the municipality in which the qualified property is
186	186	located to evaluate the application and approve or disapprove the
187	187	application before the 121st day after the date the application is
188	188	filed, unless an extension is agreed to by the governing body and
189	189	the applicant.
190	190	(c) In determining whether to grant an application, the
191	191	governing body of a school district is entitled to request and
192	192	receive assistance from:
193	193	(1) the comptroller;
194	194	(2) the Texas Economic Development and Tourism Office;
195	195	(3) the Texas Workforce Investment Council;
196	196	(4) the Texas Workforce Commission;
197	197	(5) the Texas Historical Commission; and
198	198	(6) any local board or commission that regulates or
199	199	advises the regulating governing body of a specific area.
200	200	(d) Before approving or disapproving an application that
201	201	the governing body of a school district elects to consider, the
202	202	governing body must make a written finding as to each criterion
203	203	listed in Sections 314.004(3), 314.051, and 314.053 and this
204	204	section. The governing body shall deliver a copy of those findings
205	205	to the applicant.
206	206	(e) The governing body of a school district may approve an
207	207	application only if the governing body:
208	208	(1) finds that the information in the application is
209	209	true and correct;
210	210	(2) finds that the applicant is eligible for an
211	211	exemption from taxation under this subchapter; and
212	212	(3) determines that granting the application is in the
213	213	best interest of the school district and this state.
214	214	Sec. 314.055. EXEMPTION FROM AD VALOREM TAXATION;
215	215	AGREEMENT. If the governing body of a school district approves a
216	216	person's application for an exemption from taxation under this
217	217	subchapter, the governing body and the property owner shall enter
218	218	into a written agreement for the implementation of the exemption.
219	219	Sec. 314.056. CERTAIN BUSINESS INFORMATION CONFIDENTIAL.
220	220	Information provided to a school district in connection with an
221	221	application for an exemption from taxation under this subchapter
222	222	that describes the specific processes or business activities to be
223	223	conducted or the specific tangible personal property to be located
224	224	on real property covered by the application is confidential and not
225	225	subject to public disclosure unless the governing body of the
226	226	school district approves the application. Information in the
227	227	custody of a school district if the governing body approves the
228	228	application is not confidential under this section.
229	229	Sec. 314.057. RULES AND FORMS; FEES. (a) The comptroller
230	230	shall:
231	231	(1) adopt rules and forms necessary for the
232	232	implementation and administration of this chapter, including rules
233	233	for determining whether a property owner's property qualifies as a
234	234	qualified investment under Section 314.051(1); and
235	235	(2) provide without charge one copy of the rules and
236	236	forms to any school district and to any person who states that the
237	237	person intends to apply for an exemption from taxation under this
238	238	subchapter.
239	239	(b) The governing body of a school district by official
240	240	action shall establish reasonable nonrefundable application fees
241	241	to be paid by property owners who apply to the district for an
242	242	exemption from taxation under this subchapter. The amount of an
243	243	application fee must be reasonable and may not exceed the estimated
244	244	cost to the district of processing and acting on an application.
245	245	SECTION 2. Section 312.0025(a), Tax Code, is amended to
246	246	read as follows:
247	247	(a) Notwithstanding any other provision of this chapter to
248	248	the contrary:
249	249	(1)[,] the governing body of a school district, in the
250	250	manner required for official action and for purposes of Subchapter
251	251	B or C, Chapter 313, may designate an area entirely within the
252	252	territory of the school district as a reinvestment zone if the
253	253	governing body finds that, as a result of the designation and the
254	254	granting of a limitation on appraised value under Subchapter B or C,
255	255	Chapter 313, for property located in the reinvestment zone, the
256	256	designation is reasonably likely to:
257	257	(A) [(1)] contribute to the expansion of primary
258	258	employment in the reinvestment zone; or
259	259	(B) [(2)] attract major investment in the
260	260	reinvestment zone that would:
261	261	(i) [(A)] be a benefit to property in the
262	262	reinvestment zone and to the school district; and
263	263	(ii) [(B)] contribute to the economic
264	264	development of the region of this state in which the school district
265	265	is located; and
266	266	(2) the governing body of a school district, in the
267	267	manner required by law for official action and for purposes of
268	268	Chapter 314, may designate an area entirely within the territory of
269	269	the school district as a reinvestment zone if the governing body
270	270	finds that, as a result of the designation and the granting of an
271	271	exemption from taxation under Chapter 314 for property located in
272	272	the reinvestment zone, the designation is reasonably like to serve
273	273	the purposes provided by Section 314.003 in connection with the
274	274	reinvestment zone.
275	275	SECTION 3. Section 403.302(d), Government Code, is amended
276	276	to read as follows:
277	277	(d) For the purposes of this section, "taxable value" means
278	278	the market value of all taxable property less:
279	279	(1) the total dollar amount of any residence homestead
280	280	exemptions lawfully granted under Section 11.13(b) or (c), Tax
281	281	Code, in the year that is the subject of the study for each school
282	282	district;
283	283	(2) one-half of the total dollar amount of any
284	284	residence homestead exemptions granted under Section 11.13(n), Tax
285	285	Code, in the year that is the subject of the study for each school
286	286	district;
287	287	(3) the total dollar amount of any exemptions granted
288	288	before May 31, 1993, within a reinvestment zone under agreements
289	289	authorized by Chapter 312, Tax Code;
290	290	(4) subject to Subsection (e), the total dollar amount
291	291	of any captured appraised value of property that:
292	292	(A) is within a reinvestment zone created on or
293	293	before May 31, 1999, or is proposed to be included within the
294	294	boundaries of a reinvestment zone as the boundaries of the zone and
295	295	the proposed portion of tax increment paid into the tax increment
296	296	fund by a school district are described in a written notification
297	297	provided by the municipality or the board of directors of the zone
298	298	to the governing bodies of the other taxing units in the manner
299	299	provided by Section 311.003(e), Tax Code, before May 31, 1999, and
300	300	within the boundaries of the zone as those boundaries existed on
301	301	September 1, 1999, including subsequent improvements to the
302	302	property regardless of when made;
303	303	(B) generates taxes paid into a tax increment
304	304	fund created under Chapter 311, Tax Code, under a reinvestment zone
305	305	financing plan approved under Section 311.011(d), Tax Code, on or
306	306	before September 1, 1999; and
307	307	(C) is eligible for tax increment financing under
308	308	Chapter 311, Tax Code;
309	309	(5) for a school district for which a deduction from
310	310	taxable value is made under Subdivision (4), an amount equal to the
311	311	taxable value required to generate revenue when taxed at the school
312	312	district's current tax rate in an amount that, when added to the
313	313	taxes of the district paid into a tax increment fund as described by
314	314	Subdivision (4)(B), is equal to the total amount of taxes the
315	315	district would have paid into the tax increment fund if the district
316	316	levied taxes at the rate the district levied in 2005;
317	317	(6) the total dollar amount of any captured appraised
318	318	value of property that:
319	319	(A) is within a reinvestment zone:
320	320	(i) created on or before December 31, 2008,
321	321	by a municipality with a population of less than 18,000; and
322	322	(ii) the project plan for which includes
323	323	the alteration, remodeling, repair, or reconstruction of a
324	324	structure that is included on the National Register of Historic
325	325	Places and requires that a portion of the tax increment of the zone
326	326	be used for the improvement or construction of related facilities
327	327	or for affordable housing;
328	328	(B) generates school district taxes that are paid
329	329	into a tax increment fund created under Chapter 311, Tax Code; and
330	330	(C) is eligible for tax increment financing under
331	331	Chapter 311, Tax Code;
332	332	(7) the total dollar amount of any exemptions granted
333	333	under Section 11.251 or 11.253, Tax Code;
334	334	(8) the difference between the comptroller's estimate
335	335	of the market value and the productivity value of land that
336	336	qualifies for appraisal on the basis of its productive capacity,
337	337	except that the productivity value estimated by the comptroller may
338	338	not exceed the fair market value of the land;
339	339	(9) the portion of the appraised value of residence
340	340	homesteads of individuals who receive a tax limitation under
341	341	Section 11.26, Tax Code, on which school district taxes are not
342	342	imposed in the year that is the subject of the study, calculated as
343	343	if the residence homesteads were appraised at the full value
344	344	required by law;
345	345	(10) a portion of the market value of property not
346	346	otherwise fully taxable by the district at market value because of:
347	347	(A) action required by statute or the
348	348	constitution of this state that, if the tax rate adopted by the
349	349	district is applied to it, produces an amount equal to the
350	350	difference between the tax that the district would have imposed on
351	351	the property if the property were fully taxable at market value and
352	352	the tax that the district is actually authorized to impose on the
353	353	property, if this subsection does not otherwise require that
354	354	portion to be deducted; or
355	355	(B) action taken by the district under Subchapter
356	356	B or C, Chapter 313, or Chapter 314, Tax Code;
357	357	(11) the market value of all tangible personal
358	358	property, other than manufactured homes, owned by a family or
359	359	individual and not held or used for the production of income;
360	360	(12) the appraised value of property the collection of
361	361	delinquent taxes on which is deferred under Section 33.06, Tax
362	362	Code;
363	363	(13) the portion of the appraised value of property
364	364	the collection of delinquent taxes on which is deferred under
365	365	Section 33.065, Tax Code; and
366	366	(14) the amount by which the market value of a
367	367	residence homestead to which Section 23.23, Tax Code, applies
368	368	exceeds the appraised value of that property as calculated under
369	369	that section.
370	370	SECTION 4. Section 2303.507, Government Code, is amended to
371	371	read as follows:
372	372	Sec. 2303.507. TAX INCREMENT FINANCING AND ABATEMENT;
373	373	LIMITATIONS ON APPRAISED VALUE. Designation of an area as an
374	374	enterprise zone is also designation of the area as a reinvestment
375	375	zone for:
376	376	(1) tax increment financing under Chapter 311, Tax
377	377	Code;
378	378	(2) tax abatement under Chapter 312, Tax Code; [and]
379	379	(3) limitations on appraised value under Chapter 313,
380	380	Tax Code; and
381	381	(4) exemptions under Chapter 314, Tax Code.
382	382	SECTION 5. This Act takes effect January 1, 2010.