82R3680 SMH-D
By: Fletcher H.B. No. 1685
A BILL TO BE ENTITLED
AN ACT
relating to a credit against the ad valorem taxes imposed by certain
taxing units on commercial or industrial real property based on the
cost of constructing a building on the property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 31, Tax Code, is amended by adding
Section 31.038 to read as follows:
Sec. 31.038. TAX CREDIT FOR COSTS OF CONSTRUCTING BUILDING
TO BE USED FOR COMMERCIAL OR INDUSTRIAL PURPOSES. (a) This section
does not apply to taxes imposed by a school district.
(b) An owner of real property who contracts to have a
building constructed on the property that is to be used for
commercial or industrial purposes is entitled to a credit against
the taxes imposed on the property by a taxing unit.
(c) The amount of the credit under this section to which a
property owner is entitled for a tax year is equal to the lesser of:
(1) the amount of taxes that would have been imposed on
the property by the taxing unit if the property owner were not
entitled to the credit; or
(2) the amount computed by multiplying the total
amount of the costs the property owner has contracted to pay to have
the building constructed by the product of 0.15 and a fraction the
numerator of which is the number of months the building is under
active construction during that tax year and the denominator of
which is 12.
(d) A property owner may not receive a credit under this
section against the taxes imposed on property by a taxing unit for
more than three tax years, regardless of whether the construction
continues for a longer period.
(e) To receive a credit under this section, a property owner
must file an application with the chief appraiser of the appraisal
district in which the property is located. The application must
include:
(1) a copy of each contract the property owner has
entered into to have a building constructed on the property that is
to be used for commercial or industrial purposes; and
(2) an estimate of the period in which the building is
projected to be under active construction.
(f) The chief appraiser shall forward a copy of the
application to the assessor for each taxing unit. The assessors for
the taxing units shall consult with one another as necessary to
compute the amount of the credit to be granted by each taxing unit.
(g) A credit provided by this section, once allowed, need
not be claimed in subsequent years and applies to the property
regardless of any subsequent change in ownership of the property,
subject to the limitation provided by Subsection (d).
(h) A property owner who receives a credit under this
section shall notify the appraisal office in writing when the
construction of the building is completed.
SECTION 2. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2012, but only
if the constitutional amendment proposed by the 82nd Legislature,
Regular Session, 2011, authorizing the legislature to provide for a
credit against the ad valorem taxes imposed by certain taxing units
on commercial or industrial real property based on the cost of
constructing a building on the property is approved by the voters.
If that amendment is not approved by the voters, this Act has no
effect.