By: Seliger S.B. No. 1458
A BILL TO BE ENTITLED
AN ACT
relating to the authority of the commissioners court of a county to
enter into an ad valorem tax abatement agreement.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 312.402, Tax Code, is amended by
amending Subsection (a) and adding Subsections (a-1), (a-2), and
(a-3) to read as follows:
(a) The commissioners court may execute a tax abatement
agreement with the owner of taxable real property located in a
reinvestment zone designated under this subchapter or with the
owner of tangible personal property located on real property in a
reinvestment zone to exempt from taxation all or a portion of the
value of the real property, all or a portion of the value of the
tangible personal property located on the real property, or all or a
portion of the value of both. [The court may execute a tax
abatement agreement with the owner of a leasehold interest in
tax-exempt real property or leasehold interests or improvements on
tax-exempt real property that is located in a reinvestment zone
designated under this subchapter to exempt a portion of the value of
tangible personal property or leasehold interests or improvements
on tax-exempt real property located on the real property. The
execution, duration, and other terms of an agreement made under
this section are governed by the provisions of Sections 312.204,
312.205, and 312.211 applicable to a municipality. Section
312.2041 applies to an agreement made by a county under this section
in the same manner as it applies to an agreement made by a
municipality under Section 312.204 or 312.211.]
(a-1) The commissioners court may execute a tax abatement
agreement with a lessee of taxable real property located in a
reinvestment zone designated under this subchapter to exempt from
taxation all or a portion of the value of fixtures, improvements, or
other real property owned by the lessee and located on the property
that is the subject of the lease, all or a portion of the value of
tangible personal property owned by the lessee and located on the
real property that is the subject of the lease, or all or a portion
of the value of both.
(a-2) The commissioners court may execute a tax abatement
agreement with the owner of a leasehold interest in tax-exempt real
property located in a reinvestment zone designated under this
subchapter to exempt all or a portion of the value of the leasehold
interest in the real property. The court may execute a tax
abatement agreement with the owner of tangible personal property or
an improvement located on tax-exempt real property that is located
in a designated reinvestment zone to exempt all or a portion of the
value of the tangible personal property or improvement located on
the real property.
(a-3) The execution, duration, and other terms of an
agreement entered into under this section are governed by the
provisions of Sections 312.204, 312.205, and 312.211 applicable to
a municipality, except that although an agreement may not exceed 10
years in duration, the agreement may include a provision that
defers the effective date of the agreement, or the date that the
exemption takes effect, to a date agreed to by the commissioners
court and the owner or lessee of the property that is the subject of
the agreement. Section 312.2041 applies to an agreement entered
into under this section in the same manner as that section applies
to an agreement entered into under Section 312.204 or 312.211.
SECTION 2. An ad valorem tax abatement agreement that was
executed before the effective date of this Act by the commissioners
court of a county and an owner or lessee of taxable real property or
an owner of tangible personal property, under Section 312.402, Tax
Code, as that section existed before the effective date of this Act,
that provides for an exemption from taxation of all or a portion of
the value of real property, tangible personal property, or both,
that is not invalid for a reason other than an inconsistency with
Section 312.402, Tax Code, as that section existed before the
effective date of this Act, and that is consistent with Section
312.402, Tax Code, as amended by this Act, is ratified and validated
as of the date the agreement was executed.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.