H.B. No. 3983
AN ACT
relating to the imposition of property taxes on the residential
homesteads of low-income and moderate-income persons.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 373A.155(b), Local Government Code, is
amended to read as follows:
(b) The county shall pay into the tax increment fund for the
zone the same percentage of the tax increment produced by the county
that [an amount equal to the tax increment paid by] the municipality
pays into the fund [as specified in the order adopted under Section
373A.1522].
SECTION 2. Section 373A.1522, Local Government Code, is
amended to read as follows:
Sec. 373A.1522. EFFECTIVE DATE OF ZONE. The zone
designated by the ordinance adopted under Section 373A.1521 takes
effect on the date on which the county adopts a final order[:
[(1)] agreeing to the creation of the zone, the zone
boundaries, and the zone termination date specified by the
municipality under Section 373A.1521(1)[; and
[(2) specifying an amount of tax increment to be
deposited by the county into the tax increment fund that is equal to
the amount of the tax increment specified by the municipality under
Section 373A.1521(3)].
SECTION 3. Subchapter D, Chapter 373A, Local Government
Code, is amended by adding Section 373A.159 to read as follows:
Sec. 373A.159. COMPOSITION OF BOARD OF DIRECTORS OF
HOMESTEAD PRESERVATION REINVESTMENT ZONES. (a) Notwithstanding
Chapter 311, Tax Code, the board of directors of a homestead
preservation reinvestment zone consists of at least 6 and not more
than 16 members, unless more than 16 members are required to satisfy
the requirements of this section.
(b) The municipality and county approving the payment of all
or part of the tax increment into the tax increment fund each may
appoint an equal number of members to the board.
(c) Members of the board are appointed for terms of two
years unless longer terms are provided under Section 11, Article
XI, Texas Constitution. Terms of members may be staggered.
(d) A vacancy on the board is filled for the unexpired term
by appointment of the governing body of the taxing unit that
appointed the director who served in the vacant position.
(e) To be eligible for appointment to the board, an
individual must:
(1) be a qualified voter of the county; or
(2) be at least 18 years of age and own real property
in the reinvestment zone or be an employee or agent of a person that
owns real property in the zone.
(f) Each year the board of directors of a reinvestment zone
shall elect one of its members to serve as presiding officer for a
term of one year. The board of directors may elect an assistant
presiding officer to preside in the absence of the presiding
officer or when there is a vacancy in the office of presiding
officer. The board may elect other officers as it considers
appropriate.
(g) A member of the board of directors of a homestead
preservation reinvestment zone:
(1) is not a public official by virtue of that
position; and
(2) unless otherwise ineligible, may be appointed to
serve concurrently on the board of directors of a local government
corporation created under Subchapter D, Chapter 431,
Transportation Code.
(h) The board of directors created in this section has the
powers and duties prescribed by Sections 311.010 and 311.011, Tax
Code.
SECTION 4. (a) In this section, "circuit breaker program"
means a program that limits the amount of ad valorem taxes that may
be imposed on a residence homestead based on the owner's annual
income.
(b) The comptroller shall conduct a study to examine circuit
breaker programs as a means of expanding and protecting the
homestead interests of low-income and moderate-income families.
(c) The limitations set out in Section 373A.003, Local
Government Code, do not apply to this section.
(d) Before collecting information for purposes of the
study, the comptroller shall establish an advisory committee to
assist the comptroller in conducting the study. The advisory
committee must be composed of representatives of:
(1) school districts and other taxing units;
(2) home builders;
(3) real estate agents;
(4) mortgage lenders;
(5) financial agencies involved in mortgage markets;
(6) organizations interested in housing for
low-income and moderate-income households;
(7) organizations interested in the effect of ad
valorem taxes on low-income and moderate-income households;
(8) organizations interested in the effect of public
policy on low-income and moderate-income households; and
(9) other appropriate, interested organizations or
members of the public, as determined by the comptroller.
(e) The comptroller, with the assistance of the advisory
committee, shall study:
(1) methods to implement a circuit breaker program,
including the use of rebates or tax credits;
(2) methods to create a simple, transparent process
for the owner of a residence homestead to apply for and receive a
limitation on the amount of ad valorem taxes that may be imposed on
the homestead under a circuit breaker program;
(3) the effects of different designs of a circuit
breaker program, including the effect of:
(A) limiting which taxing units are involved;
(B) basing eligibility on a maximum annual income
level;
(C) limiting the dollar amount of the benefit
that a property owner could receive in the program; and
(D) basing eligibility on a minimum ratio of
residence homestead ad valorem taxes imposed to annual income,
including a progressive scale of minimum ratios based on annual
income; and
(4) methods to ensure the reliability of a property
owner's statement of annual income.
(f) The comptroller and the advisory committee shall
analyze the information studied and prepare a report that:
(1) describes the parameters, techniques, and legal
assumptions established under Subsection (e) of this section that
were used in conducting the study;
(2) estimates the benefit of alternative designs of a
circuit breaker program for property owners in various annual
income brackets and with varying amounts of residence homestead ad
valorem tax liability, including an estimate of the percentage of
property owners in various annual income brackets that would
benefit and the dollar amount of the benefit to those property
owners;
(3) estimates the cost to the state and taxing units of
implementing alternative designs of a circuit breaker program,
including the percentage by which the amount of ad valorem taxes
collected would be reduced;
(4) analyzes the effects on this state's economy of
implementing a circuit breaker program, including the effect on
home ownership rates, the residential housing market, and economic
development; and
(5) specifies any necessary statutory changes the
comptroller and the advisory committee determine are necessary to
implement a circuit breaker program described by the study.
(g) The comptroller may contract with appraisal districts,
taxing units, or other appropriate organizations for assistance and
to obtain information necessary to conduct the study. A state
agency, appraisal district, or taxing unit shall assist the
comptroller if the comptroller requests information or assistance
in conducting the study.
(h) Not later than December 1, 2010, the comptroller shall
submit to the governor, lieutenant governor, and speaker of the
house of representatives the report prepared under Subsection (f)
of this section.
(i) This section expires September 1, 2011.
SECTION 5. This Act takes effect September 1, 2009.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3983 was passed by the House on May 6,
2009, by the following vote: Yeas 136, Nays 9, 1 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 3983 on May 25, 2009, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 3983 on May 31, 2009, by the following vote: Yeas 125,
Nays 21, 1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3983 was passed by the Senate, with
amendments, on May 22, 2009, by the following vote: Yeas 30, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
3983 on May 31, 2009, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor