Texas 2009 - 81st Regular

Texas House Bill HB2503 Compare Versions

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1	1	By: Swinford H.B. No. 2503
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to agreements for limitations on appraised value under the
7	7	Texas Economic Development Act.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 313.007, Tax Code, is amended to read as
10	10	follows:
11	11	Sec. 313.007. EXPIRATION. Subchapters B, C, and D expire
12	12	December 31, 2015 [2011].
13	13	SECTION 2. Section 313.021, Tax Code, is amended to read as
14	14	follows:
15	15	Sec. 313.021. DEFINITIONS. In this subchapter:
16	16	(1) "Qualified investment" means:
17	17	(A) tangible personal property that is first
18	18	placed in service in this state during the applicable qualifying
19	19	time period that begins on or after January 1, 2002 without regard
20	20	to whether the property is affixed to or incorporated into real
21	21	property, and is described as Section 1245 property by Section
22	22	1245(a), Internal Revenue Code of 1986;
23	23	(B) tangible personal property that is first
24	24	placed in service in this state during the applicable qualifying
25	25	time period that begins on or after January 1, 2002, without regard
26	26	to whether the property is affixed to or incorporated into real
27	27	property, and that is used in connection with the manufacturing,
28	28	processing, or fabrication in a cleanroom environment of a
29	29	semiconductor product, without regard to whether the property is
30	30	actually located in the cleanroom environment, including:
31	31	(i) integrated systems, fixtures, and
32	32	piping;
33	33	(ii) all property necessary or adapted to
34	34	reduce contamination or to control airflow, temperature, humidity,
35	35	chemical purity, or other environmental conditions or
36	36	manufacturing tolerances; and
37	37	(iii) production equipment and machinery,
38	38	moveable cleanroom partitions, and cleanroom lighting;
39	39	(C) tangible personal property that is first
40	40	placed in service in this state during the applicable qualifying
41	41	time period that begins on or after January 1, 2002, without regard
42	42	to whether the property is affixed to or incorporated into real
43	43	property, and that is used in connection with the operation of a
44	44	nuclear electric power generation facility, including:
45	45	(i) property, including pressure vessels,
46	46	pumps, turbines, generators, and condensers, used to produce
47	47	nuclear electric power; and
48	48	(ii) property and systems necessary to
49	49	control radioactive contamination;
50	50	(D) tangible personal property that is first
51	51	placed in service in this state during the applicable qualifying
52	52	time period that begins on or after January 1, 2002, without regard
53	53	to whether the property is affixed to or incorporated into real
54	54	property, and that is used in connection with operating an
55	55	integrated gasification combined cycle electric generation
56	56	facility, including:
57	57	(i) property used to produce electric power
58	58	by means of a combined combustion turbine and steam turbine
59	59	application using synthetic gas or another product produced by the
60	60	gasification of coal or another carbon-based feedstock; or
61	61	(ii) property used in handling materials to
62	62	be used as feedstock for gasification or used in the gasification
63	63	process to produce synthetic gas or another carbon-based feedstock
64	64	for use in the production of electric power in the manner described
65	65	by Subparagraph (i); or
66	66	(E) a building or a permanent, nonremovable
67	67	component of a building that is built or constructed during the
68	68	applicable qualifying time period that begins on or after January
69	69	1, 2002, and that houses tangible personal property described by
70	70	Paragraph (A), (B), (C), or (D).
71	71	(2) "Qualified property" means:
72	72	(A) land:
73	73	(i) that is located in an area designated as
74	74	a reinvestment zone under Chapter 311 or 312 or as an enterprise
75	75	zone under Chapter 2303, Government Code;
76	76	(ii) on which a person proposes to
77	77	construct a new building or erect or affix a new improvement that
78	78	does not exist before the date such person [the owner] applies for a
79	79	limitation on appraised value under this subchapter;
80	80	(iii) that is not subject to a tax abatement
81	81	agreement entered into by a school district under Chapter 312; and
82	82	(iv) on which, in connection with the new
83	83	building or new improvement described by Subparagraph (ii), the
84	84	owner or lessee of, or holder of another possessory interest in,
85	85	the land proposes to:
86	86	(a) make a qualified investment in an
87	87	amount equal to at least the minimum amount required by Section
88	88	313.023; and
89	89	(b) create at least 25 new jobs;
90	90	(B) the new building or other new improvement
91	91	described by Paragraph (A)(ii); and
92	92	(C) tangible personal property that:
93	93	(i) is not subject to a tax abatement
94	94	agreement entered into by a school district under Chapter 312; and
95	95	(ii) except for new equipment described in
96	96	Section 151.318(q) or (q-1), is first placed in service in the new
97	97	building or in or on the new improvement described by Paragraph
98	98	(A)(ii), or on the land on which that new building or new
99	99	improvement is located, if the personal property is ancillary and
100	100	necessary to the business conducted in that new building or in or on
101	101	that new improvement.
102	102	(3) "Qualifying job" means a permanent full-time job
103	103	that:
104	104	(A) requires at least 1,600 hours of work a year;
105	105	(B) is not transferred from one area in this
106	106	state to another area in this state;
107	107	(C) is not created to replace a previous
108	108	employee;
109	109	(D) is covered by a group health benefit plan, as
110	110	defined by Section 481.151, Government Code, for which the business
111	111	offers to pay at least 80 percent of the premiums or other charges
112	112	assessed for employee-only coverage under the plan, regardless of
113	113	whether an employee may voluntarily waive the coverage; and
114	114	(E) pays at least 110 percent of the county
115	115	average weekly wage [for manufacturing jobs] in the county where
116	116	the job is located.
117	117	(4) "Qualifying time period" means:
118	118	(A) the period from the date that a person's
119	119	application for a limitation on appraised value is approved by the
120	120	governing body of the school district through the end of the first
121	121	two tax years that begin on or after the date a person's application
122	122	for a limitation on appraised value under this subchapter is
123	123	approved, except as provided by Paragraph (B) or by section
124	124	313.027(h); or
125	125	(B) in connection with a nuclear electric power
126	126	generation facility, the first seven tax years that begin on or
127	127	after the third anniversary of the date the school district
128	128	approves the property owner's application for a limitation on
129	129	appraised value under this subchapter, unless a shorter time period
130	130	is agreed to by the governing body of the school district and the
131	131	property owner.
132	132	(5) "County average weekly wage [for manufacturing
133	133	jobs]" means the average weekly wage in a county [for manufacturing
134	134	jobs] as computed by the Texas Workforce Commission with respect to
135	135	the most recent four quarters then available from the Texas
136	136	Workforce Commission.
137	137	SECTION 3. Section 313.024(e), Tax Code, is amended to read
138	138	as follows:
139	139	(e) In this section:
140	140	(1) "Manufacturing" [and "research and development"
141	141	have the meanings assigned by Section 171.751] means an
142	142	establishment that is primarily engaged in activities that are
143	143	described in sector codes 31-33 of the North American Industry
144	144	Classification System.
145	145	(2) "Research and development" means an establishment
146	146	that is primarily engaged in activities that are described in
147	147	industry code 541710 of the 2002 North American Industry
148	148	Classification System.
149	149	(3) "Renewable energy electric generation" means an
150	150	establishment primarily engaged in activities described in
151	151	category 221119 of the 1997 North American Industry Classification
152	152	System.
153	153	(4) "Integrated gasification combined cycle
154	154	technology" means technology used to produce electricity in a
155	155	combined combustion turbine and steam turbine application using
156	156	synthetic gas or another product produced from the gasification of
157	157	coal or another carbon-based feedstock, including related
158	158	activities such as materials-handling and gasification of coal or
159	159	another carbon-based feedstock.
160	160	(5) "Nuclear electric power generation" means
161	161	activities described in category 221113 of the 2002 North American
162	162	Industry Classification System.
163	163	SECTION 4. Section 313.025(a), Tax Code, is amended to read
164	164	as follows:
165	165	(a) The owner or lessee of, or other holder of a possessory
166	166	interest in, any qualified property described in any of Section
167	167	313.021(2)(A), (B), or (C) may apply to the governing body of the
168	168	school district in which the property is located for a limitation on
169	169	the appraised value for school district maintenance and operations
170	170	ad valorem tax purposes of the person's qualified property. An
171	171	application must be made on the form prescribed by the comptroller
172	172	and include the information required by the comptroller, and it
173	173	must be accompanied by:
174	174	(1) the application fee established by the governing
175	175	body of the school district;
176	176	(2) information sufficient to show that the real and
177	177	personal property identified in the application as qualified
178	178	property meets the applicable criteria established by Section
179	179	313.021(2); and
180	180	(3) information relating to each applicable criterion
181	181	listed in Section 313.026.
182	182	SECTION 5. Amend Section 313.027, Tax Code, by adding the
183	183	following new subsection (h) to read as follows:
184	184	(h) The governing body of the school district and the
185	185	property owner may agree to delay the effective date of the
186	186	agreement or subsequently amend the agreement to delay the
187	187	effective date of the agreement for a period not to exceed 5 years
188	188	from the date that the governing body of the school district first
189	189	approves the agreement. In the event that the governing body of the
190	190	school district and the property owner agree to delay the effective
191	191	date of the agreement, the qualifying time period shall consist of
192	192	the first two tax years that begin on or after the effective date of
193	193	the agreement.
194	194	SECTION 6. Amend Section 313.051, Tax Code, to read as
195	195	follows:
196	196	Sec. 313.051. APPLICABILITY. (a) This subchapter applies
197	197	only to a school district that has territory in:
198	198	(1) an area that qualified as a strategic investment
199	199	area under Subchapter 0, Chapter 171, immediately before that
200	200	subchapter expired [, as defined by Section 171.721]; or
201	201	(2) a county:
202	202	(A) that has a population of less than 50,000;
203	203	and
204	204	(B) [that is not partially or wholly located in a
205	205	metropolitan statistical area; and
206	206	[(C)] in which, from 1990 to 2000, according to
207	207	the federal decennial census, the population:
208	208	(i) remained the same;
209	209	(ii) decreased; or
210	210	(iii) increased, but at a rate of not more
211	211	than three percent per annum.
212	212	(a-1) Notwithstanding Subsection (a), if on January 1,
213	213	2002, this subchapter applied to a school district in whose
214	214	territory is located a federal nuclear facility, this subchapter
215	215	continues to apply to the school district regardless of whether the
216	216	school district ceased or ceases to be described by Subsection (a)
217	217	after that date.
218	218	(b) The governing body of a school district to which this
219	219	subchapter applies may enter into an agreement in the same manner as
220	220	a school district to which Subchapter B applies may do so under
221	221	Subchapter B, subject to Sections 313.052-2313.054. Except as
222	222	otherwise provided by this subchapter, the provisions of Subchapter
223	223	B apply to a school district to which this subchapter applies. For
224	224	purposes of this subchapter, a property owner is required to create
225	225	only at least 10 new jobs on the owner's qualified property. At
226	226	least 80 percent of all the new jobs created must be qualifying jobs
227	227	as defined by Section 313.021(3). [, except that, for a school
228	228	district described by Subsection (a)(2), each qualifying job must
229	229	pay at least 110 percent of the average weekly wage for
230	230	manufacturing jobs in the region designated for the regional
231	231	planning commission, council of governments, or similar regional
232	232	planning agency created under Chapter 391, Local Government Code,
233	233	in which the district is located.]
234	234	SECTION 7. Section 403.302(d), Government Code, is amended
235	235	to read as follows:
236	236	(d) For the purposes of this section, "taxable value" means
237	237	the market value of all taxable property less:
238	238	(1) the total dollar amount of any residence homestead
239	239	exemptions lawfully granted under Section 11.13(b) or (c), Tax
240	240	Code, in the year that is the subject of the study for each school
241	241	district;
242	242	(2) one-half of the total dollar amount of any
243	243	residence homestead exemptions granted under Section 11.13(n), Tax
244	244	Code, in the year that is the subject of the study for each school
245	245	district;
246	246	(3) the total dollar amount of any exemptions granted
247	247	before May 31, 1993, within a reinvestment zone under agreements
248	248	authorized by Chapter 312, Tax Code;
249	249	(4) subject to Subsection (e), the total dollar amount
250	250	of any captured appraised value of property that:
251	251	(A) is within a reinvestment zone created on or
252	252	before May 31, 1999, or is proposed to be included within the
253	253	boundaries of a reinvestment zone as the boundaries of the zone and
254	254	the proposed portion of tax increment paid into the tax increment
255	255	fund by a school district are described in a written notification
256	256	provided by the municipality or the board of directors of the zone
257	257	to the governing bodies of the other taxing units in the manner
258	258	provided by Section 311.003(e), Tax Code, before May 31, 1999, and
259	259	within the boundaries of the zone as those boundaries existed on
260	260	September 1, 1999, including subsequent improvements to the
261	261	property regardless of when made;
262	262	(B) generates taxes paid into a tax increment
263	263	fund created under Chapter 311, Tax Code, under a reinvestment zone
264	264	financing plan approved under Section 311.011(d), Tax Code, on or
265	265	before September 1, 1999; and
266	266	(C) is eligible for tax increment financing under
267	267	Chapter 311, Tax Code;
268	268	(5) for a school district for which a deduction from
269	269	taxable value is made under Subdivision (4), an amount equal to the
270	270	taxable value required to generate revenue when taxed at the school
271	271	district's current tax rate in an amount that, when added to the
272	272	taxes of the district paid into a tax increment fund as described by
273	273	Subdivision (4)(B), is equal to the total amount of taxes the
274	274	district would have paid into the tax increment fund if the district
275	275	levied taxes at the rate the district levied in 2005;
276	276	(6) the total dollar amount of any captured appraised
277	277	value of property that:
278	278	(A) is within a reinvestment zone:
279	279	(i) created on or before December 31, 2008,
280	280	by a municipality with a population of less than 18,000; and
281	281	(ii) the project plan for which includes
282	282	the alteration, remodeling, repair, or reconstruction of a
283	283	structure that is included on the National Register of Historic
284	284	Places and requires that a portion of the tax increment of the zone
285	285	be used for the improvement or construction of related facilities
286	286	or for affordable housing;
287	287	(B) generates school district taxes that are paid
288	288	into a tax increment fund created under Chapter 311, Tax Code; and
289	289	(C) is eligible for tax increment financing under
290	290	Chapter 311, Tax Code;
291	291	(7) the total dollar amount of any exemptions granted
292	292	under Section 11.251 or 11.253, Tax Code;
293	293	(8) the difference between the comptroller's estimate
294	294	of the market value and the productivity value of land that
295	295	qualifies for appraisal on the basis of its productive capacity,
296	296	except that the productivity value estimated by the comptroller may
297	297	not exceed the fair market value of the land;
298	298	(9) the portion of the appraised value of residence
299	299	homesteads of individuals who receive a tax limitation under
300	300	Section 11.26, Tax Code, on which school district taxes are not
301	301	imposed in the year that is the subject of the study, calculated as
302	302	if the residence homesteads were appraised at the full value
303	303	required by law;
304	304	(10) a portion of the market value of property not
305	305	otherwise fully taxable by the district at market value because of:
306	306	(A) action required by statute or the
307	307	constitution of this state that, if the tax rate adopted by the
308	308	district is applied to it, produces an amount equal to the
309	309	difference between the tax that the district would have imposed on
310	310	the property if the property were fully taxable at market value and
311	311	the tax that the district is actually authorized to impose on the
312	312	property, if this subsection does not otherwise require that
313	313	portion to be deducted; or
314	314	(B) action taken by the district under Subchapter
315	315	B or C, Chapter 313, Tax Code, before the expiration of the
316	316	subchapter;
317	317	(11) the market value of all tangible personal
318	318	property, other than manufactured homes, owned by a family or
319	319	individual and not held or used for the production of income;
320	320	(12) the appraised value of property the collection of
321	321	delinquent taxes on which is deferred under Section 33.06, Tax
322	322	Code;
323	323	(13) the portion of the appraised value of property
324	324	the collection of delinquent taxes on which is deferred under
325	325	Section 33.065, Tax Code; and
326	326	(14) the amount by which the market value of a
327	327	residence homestead to which Section 23.23, Tax Code, applies
328	328	exceeds the appraised value of that property as calculated under
329	329	that section.
330	330	SECTION 8. Section 313.021(1)(A) and (2), Tax Code, as
331	331	amended by Section 2, Section 313.024(e), Tax Code, as amended by
332	332	Section 3, and Section 313.025(a), Tax Code, as amended by Section
333	333	4, are intended to clarify existing law in effect before the
334	334	effective date of this Act and are not intended to make a
335	335	substantive change in the law.
336	336	SECTION 9. This Act takes effect immediately if it receives
337	337	a vote of two-thirds of all the members elected to each house, as
338	338	provided by Section 39, Article III, Texas Constitution. If this
339	339	Act does not receive the vote necessary for immediate effect, this
340	340	Act takes effect September 1, 2009.