Texas 2009 - 81st Regular

Texas Senate Bill SB1593 Compare Versions

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1	1	By: Seliger S.B. No. 1593
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, the
85	85	land proposes to:
86	86	(a) make a qualified investment in an amount equal to at
87	87	least the minimum amount required by Section 313.023; and
88	88	(b) create at least 25 new jobs;
89	89	(B) the new building or other new improvement
90	90	described by Paragraph (A)(ii); and
91	91	(C) tangible personal property that:
92	92	(i) is not subject to a tax abatement
93	93	agreement entered into by a school district under Chapter 312; and
94	94	(ii) except for new equipment described in
95	95	Section 151.318(q) or (q-1), is first placed in service in the new
96	96	building or in or on the new improvement described by Paragraph
97	97	(A)(ii), or on the land on which that new building or new
98	98	improvement is located, if the personal property is ancillary and
99	99	necessary to the business conducted in that new building or in or on
100	100	that new improvement.
101	101	(3) "Qualifying job" means a permanent full-time job
102	102	that:
103	103	(A) requires at least 1,600 hours of work a year;
104	104	(B) is not transferred from one area in this
105	105	state to another area in this state;
106	106	(C) is not created to replace a previous
107	107	employee;
108	108	(D) is covered by a group health benefit plan, as
109	109	defined by Section 481.151, Government Code, for which the business
110	110	offers to pay at least 80 percent of the premiums or other charges
111	111	assessed for employee-only coverage under the plan, regardless of
112	112	whether an employee may voluntarily waive the coverage; and
113	113	(E) pays at least 110 percent of the county
114	114	average weekly wage [for manufacturing jobs] in the county where
115	115	the job is located.
116	116	(4) "Qualifying time period" means:
117	117	(A) the period from the date that a person's
118	118	application for a limitation on appraised value is approved by the
119	119	governing body of the school district through the end of the first
120	120	two tax years that begin on or after the date a person's application
121	121	for a limitation on appraised value under this subchapter is
122	122	approved, except as provided by Paragraph (B) or by section
123	123	313.027(h); or
124	124	(B) in connection with a nuclear electric power
125	125	generation facility, the first seven tax years that begin on or
126	126	after the third anniversary of the date the school district
127	127	approves the property owner's application for a limitation on
128	128	appraised value under this subchapter, unless a shorter time period
129	129	is agreed to by the governing body of the school district and the
130	130	property owner.
131	131	(5) "County average weekly wage [for manufacturing
132	132	jobs]" means the average weekly wage in a county [for manufacturing
133	133	jobs] as computed by the Texas Workforce Commission with respect to
134	134	the most recent four quarters then available from the Texas
135	135	Workforce Commission.
136	136	SECTION 3. Section 313.024(e), Tax Code, is amended to read
137	137	as follows:
138	138	(e) In this section:
139	139	(1) "Manufacturing" and "research and development"
140	140	have the meanings assigned by Section 171.751 means an
141	141	establishment that is primarily engaged in activities that are
142	142	described in sector codes 31-33 of the North American Industry
143	143	Classification System.
144	144	(2) "Research and development" means an establishment
145	145	that is primarily engaged in activities that are described in
146	146	industry code 541710 of the 2002 North American Industry
147	147	Classification System.
148	148	(3) "Renewable energy electric generation" means an
149	149	establishment primarily engaged in activities described in
150	150	category 221119 of the 1997 North American Industry Classification
151	151	System.
152	152	(4) "Integrated gasification combined cycle
153	153	technology" means technology used to produce electricity in a
154	154	combined combustion turbine and steam turbine application using
155	155	synthetic gas or another product produced from the gasification of
156	156	coal or another carbon-based feedstock, including related
157	157	activities such as materials-handling and gasification of coal or
158	158	another carbon-based feedstock.
159	159	(5) "Nuclear electric power generation" means
160	160	activities described in category 221113 of the 2002 North American
161	161	Industry Classification System.
162	162	SECTION 4. Section 313.025(a), Tax Code, is amended to read
163	163	as follows:
164	164	(a) The owner or lessee of, or other holder of a possessory
165	165	interest in, any qualified property described in any of Section
166	166	313.021(2)(A), (B), or (C) may apply to the governing body of the
167	167	school district in which the property is located for a limitation on
168	168	the appraised value for school district maintenance and operations
169	169	ad valorem tax purposes of the person's qualified property. An
170	170	application must be made on the form prescribed by the comptroller
171	171	and include the information required by the comptroller, and it
172	172	must be accompanied by:
173	173	(1) the application fee established by the governing
174	174	body of the school district;
175	175	(2) information sufficient to show that the real and
176	176	personal property identified in the application as qualified
177	177	property meets the applicable criteria established by Section
178	178	313.021(2); and
179	179	(3) information relating to each applicable criterion
180	180	listed in Section 313.026.
181	181	SECTION 5. Amend Section 313.027, Tax Code, by adding the
182	182	following new subsection (h) to read as follows:
183	183	(h) The governing body of the school district and the
184	184	property owner may agree to delay the effective date of the
185	185	agreement or subsequently amend the agreement to delay the
186	186	effective date of the agreement for a period not to exceed 5 years
187	187	from the date that the governing body of the school district first
188	188	approves the agreement. In the event that the governing body of the
189	189	school district and the property owner agree to delay the effective
190	190	date of the agreement, the qualifying time period shall consist of
191	191	the first two tax years that begin on or after the effective date of
192	192	the agreement.
193	193	SECTION 6. Amend Section 313.051, Tax Code, to read as
194	194	follows:
195	195	Sec. 313.051. APPLICABILITY. (a) This subchapter applies
196	196	only to a school district that has territory in:
197	197	(1) an area that qualified as a strategic investment
198	198	area under Subchapter O, Chapter 171, immediately before that
199	199	subchapter expired [, as defined by Section 171.721]; or
200	200	(2) a county:
201	201	(A) that has a population of less than 50,000;
202	202	and
203	203	(B) [that is not partially or wholly located in a
204	204	metropolitan statistical area; and
205	205	[(C)] in which, from 1990 to 2000, according to
206	206	the federal decennial census, the population:
207	207	(i) remained the same;
208	208	(ii) decreased; or
209	209	(iii) increased, but at a rate of not more
210	210	than three percent per annum.
211	211	(a-1) Notwithstanding Subsection (a), if on January 1,
212	212	2002, this subchapter applied to a school district in whose
213	213	territory is located a federal nuclear facility, this subchapter
214	214	continues to apply to the school district regardless of whether the
215	215	school district ceased or ceases to be described by Subsection (a)
216	216	after that date.
217	217	(b) The governing body of a school district to which this
218	218	subchapter applies may enter into an agreement in the same manner as
219	219	a school district to which Subchapter B applies may do so under
220	220	Subchapter B, subject to Sections 313.052-313.054. Except as
221	221	otherwise provided by this subchapter, the provisions of Subchapter
222	222	B apply to a school district to which this subchapter applies. For
223	223	purposes of this subchapter, a property owner is required to create
224	224	only at least 10 new jobs on the owner's qualified property. At
225	225	least 80 percent of all the new jobs created must be qualifying jobs
226	226	as defined by Section 313.021(3). [, except that, for a school
227	227	district described by Subsection (a)(2), each qualifying job must
228	228	pay at least 110 percent of the average weekly wage for
229	229	manufacturing jobs in the region designated for the regional
230	230	planning commission, council of governments, or similar regional
231	231	planning agency created under Chapter 391, Local Government Code,
232	232	in which the district is located.]
233	233	SECTION 7. Section 403.302(d), Government Code, is amended
234	234	to read as follows:
235	235	(d) For the purposes of this section, "taxable value" means
236	236	the market value of all taxable property less:
237	237	(1) the total dollar amount of any residence homestead
238	238	exemptions lawfully granted under Section 11.13(b) or (c), Tax
239	239	Code, in the year that is the subject of the study for each school
240	240	district;
241	241	(2) one-half of the total dollar amount of any
242	242	residence homestead exemptions granted under Section 11.13(n), Tax
243	243	Code, in the year that is the subject of the study for each school
244	244	district;
245	245	(3) the total dollar amount of any exemptions granted
246	246	before May 31, 1993, within a reinvestment zone under agreements
247	247	authorized by Chapter 312, Tax Code;
248	248	(4) subject to Subsection (e), the total dollar amount
249	249	of any captured appraised value of property that:
250	250	(A) is within a reinvestment zone created on or
251	251	before May 31, 1999, or is proposed to be included within the
252	252	boundaries of a reinvestment zone as the boundaries of the zone and
253	253	the proposed portion of tax increment paid into the tax increment
254	254	fund by a school district are described in a written notification
255	255	provided by the municipality or the board of directors of the zone
256	256	to the governing bodies of the other taxing units in the manner
257	257	provided by Section 311.003(e), Tax Code, before May 31, 1999, and
258	258	within the boundaries of the zone as those boundaries existed on
259	259	September 1, 1999, including subsequent improvements to the
260	260	property regardless of when made;
261	261	(B) generates taxes paid into a tax increment
262	262	fund created under Chapter 311, Tax Code, under a reinvestment zone
263	263	financing plan approved under Section 311.011(d), Tax Code, on or
264	264	before September 1, 1999; and
265	265	(C) is eligible for tax increment financing under
266	266	Chapter 311, Tax Code;
267	267	(5) for a school district for which a deduction from
268	268	taxable value is made under Subdivision (4), an amount equal to the
269	269	taxable value required to generate revenue when taxed at the school
270	270	district's current tax rate in an amount that, when added to the
271	271	taxes of the district paid into a tax increment fund as described by
272	272	Subdivision (4)(B), is equal to the total amount of taxes the
273	273	district would have paid into the tax increment fund if the district
274	274	levied taxes at the rate the district levied in 2005;
275	275	(6) the total dollar amount of any captured appraised
276	276	value of property that:
277	277	(A) is within a reinvestment zone:
278	278	(i) created on or before December 31, 2008,
279	279	by a municipality with a population of less than 18,000; and
280	280	(ii) the project plan for which includes
281	281	the alteration, remodeling, repair, or reconstruction of a
282	282	structure that is included on the National Register of Historic
283	283	Places and requires that a portion of the tax increment of the zone
284	284	be used for the improvement or construction of related facilities
285	285	or for affordable housing;
286	286	(B) generates school district taxes that are paid
287	287	into a tax increment fund created under Chapter 311, Tax Code; and
288	288	(C) is eligible for tax increment financing under
289	289	Chapter 311, Tax Code;
290	290	(7) the total dollar amount of any exemptions granted
291	291	under Section 11.251 or 11.253, Tax Code;
292	292	(8) the difference between the comptroller's estimate
293	293	of the market value and the productivity value of land that
294	294	qualifies for appraisal on the basis of its productive capacity,
295	295	except that the productivity value estimated by the comptroller may
296	296	not exceed the fair market value of the land;
297	297	(9) the portion of the appraised value of residence
298	298	homesteads of individuals who receive a tax limitation under
299	299	Section 11.26, Tax Code, on which school district taxes are not
300	300	imposed in the year that is the subject of the study, calculated as
301	301	if the residence homesteads were appraised at the full value
302	302	required by law;
303	303	(10) a portion of the market value of property not
304	304	otherwise fully taxable by the district at market value because of:
305	305	(A) action required by statute or the
306	306	constitution of this state that, if the tax rate adopted by the
307	307	district is applied to it, produces an amount equal to the
308	308	difference between the tax that the district would have imposed on
309	309	the property if the property were fully taxable at market value and
310	310	the tax that the district is actually authorized to impose on the
311	311	property, if this subsection does not otherwise require that
312	312	portion to be deducted; or
313	313	(B) action taken by the district under Subchapter
314	314	B or C, Chapter 313, Tax Code, before the expiration of the
315	315	subchapter;
316	316	(11) the market value of all tangible personal
317	317	property, other than manufactured homes, owned by a family or
318	318	individual and not held or used for the production of income;
319	319	(12) the appraised value of property the collection of
320	320	delinquent taxes on which is deferred under Section 33.06, Tax
321	321	Code;
322	322	(13) the portion of the appraised value of property
323	323	the collection of delinquent taxes on which is deferred under
324	324	Section 33.065, Tax Code; and
325	325	(14) the amount by which the market value of a
326	326	residence homestead to which Section 23.23, Tax Code, applies
327	327	exceeds the appraised value of that property as calculated under
328	328	that section.
329	329	SECTION 8. Section 313.021(1)(A) and (2), Tax Code, as
330	330	amended by Section 2, Section 313.024(e), Tax Code, as amended by
331	331	Section 3, and Section 313.025(a), Tax Code, as amended by
332	332	Section 4, are intended to clarify existing law in effect before
333	333	the effective date of this Act and are not intended to make a
334	334	substantive change in the law.
335	335	SECTION 9. This Act takes effect immediately if it receives
336	336	a vote of two-thirds of all the members elected to each house, as
337	337	provided by Section 39, Article III, Texas Constitution. If this
338	338	Act does not receive the vote necessary for immediate effect, this
339	339	Act takes effect September 1, 2009.