By: Hilderbran H.B. No. 269
A BILL TO BE ENTITLED
AN ACT
relating to the Texas Economic Development Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 313.004, Tax Code, is amended to read as
follows:
Sec. 313.004. LEGISLATIVE INTENT. It is the intent of the
legislature in enacting this chapter that:
(1) economic development decisions should occur at the
state [local] level with local approval and be consistent with
identifiable statewide economic development goals;
(2) this chapter should not be construed or
interpreted to allow:
(A) property owners to pool investments to create
sufficiently large investments to qualify for an ad valorem tax
benefit or financial benefit provided by this chapter;
(B) an applicant for an ad valorem tax benefit or
financial benefit provided by this chapter to assert that jobs will
be eliminated if certain investments are not made if the assertion
is not true; or
(C) a sole proprietorship, partnership, or
limited liability partnership to receive an ad valorem tax benefit
or financial benefit provided by this chapter; and
(3) in implementing this chapter, the comptroller
[school districts] should:
(A) strictly interpret the criteria and
selection guidelines provided by this chapter; and
(B) approve only those applications for an ad
valorem tax benefit or financial benefit provided by this chapter
that:
(i) enhance the local community;
(ii) improve the local public education
system;
(iii) create high-paying jobs; and
(iv) advance the economic development goals
of this state as identified by the Texas Strategic Economic
Development Planning Commission.
SECTION 2. Sections 313.021(2) and (4), Tax Code, are
amended to read as follows:
(2) "Qualified property" means:
(A) land:
(i) that is located in an area designated as
a reinvestment zone under Chapter 311 or 312 or as an enterprise
zone under Chapter 2303, Government Code;
(ii) on which a person proposes to
construct a new building or erect or affix a new improvement that
does not exist before the date the person applies for a limitation
on appraised value under this subchapter;
(iii) that is not subject to a tax abatement
agreement entered into by a school district under Chapter 312; and
(iv) on which, in connection with the new
building or new improvement described by Subparagraph (ii), the
owner or lessee of, or the holder of another possessory interest in,
the land proposes to:
(a) make a qualified investment in an
amount equal to at least the minimum amount required by Section
313.023; and
(b) create at least:
(1) 100 new jobs, in the case of
property used in connection with manufacturing, research and
development, or nuclear electric power generation;
(2) 25 new jobs, in the case of
property used in connection with renewable energy electric
generation; or
(3) 25 new jobs, in the case of
property used in connection with another activity;
(B) the new building or other new improvement
described by Paragraph (A)(ii); and
(C) tangible personal property that:
(i) is not subject to a tax abatement
agreement entered into by a school district under Chapter 312; and
(ii) except for new equipment described in
Section 151.318(q) or (q-1), is first placed in service in the new
building or in or on the new improvement described by Paragraph
(A)(ii), or on the land on which that new building or new
improvement is located, if the personal property is ancillary and
necessary to the business conducted in that new building or in or on
that new improvement.
(4) "Qualifying time period" means:
(A) the period that begins on the date that a
person's application for a limitation on appraised value under this
subchapter is approved by the comptroller [governing body of the
school district] and ends on December 31 of the second tax year that
begins after that date, except as provided by Paragraph (B) or (C)
of this subdivision or Section 313.027(h);
(B) in connection with a nuclear electric power
generation facility, the first seven tax years that begin on or
after the third anniversary of the date the comptroller [school
district] approves the property owner's application for a
limitation on appraised value under this subchapter, unless a
shorter time period is agreed to by the comptroller [governing body
of the school district] and the property owner; or
(C) in connection with an advanced clean energy
project, as defined by Section 382.003, Health and Safety Code, the
first five tax years that begin on or after the third anniversary of
the date the comptroller [school district] approves the property
owner's application for a limitation on appraised value under this
subchapter, unless a shorter time period is agreed to by the
comptroller [governing body of the school district] and the
property owner.
SECTION 3. Section 313.023, Tax Code, is amended to read as
follows:
Sec. 313.023. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. (a)
Except as provided by Subsection (b), for [For] each category of
school district established by Section 313.022, the minimum amount
of a qualified investment under Section 313.021(2)(A)(iv)(a) is as
follows:
CATEGORY MINIMUM QUALIFIED INVESTMENT CATEGORY MINIMUM QUALIFIED INVESTMENT
CATEGORY MINIMUM QUALIFIED INVESTMENT
I $100 million I $100 million
I $100 million
II $80 million II $80 million
II $80 million
III $60 million III $60 million
III $60 million
IV $40 million IV $40 million
IV $40 million
V $20 million V $20 million
V $20 million
(b) For each category of school district established by
Section 313.022, the minimum amount of a qualified investment under
Section 313.021(2)(A)(iv)(a) in the case of property used in
connection with renewable energy electric generation is as follows:
CATEGORY MINIMUM QUALIFIED INVESTMENT CATEGORY MINIMUM QUALIFIED INVESTMENT
CATEGORY MINIMUM QUALIFIED INVESTMENT
I $100 million I $100 million
I $100 million
II $80 million II $80 million
II $80 million
III $60 million III $60 million
III $60 million
IV $40 million IV $40 million
IV $40 million
V $20 million V $20 million
V $20 million
SECTION 4. Section 313.025, Tax Code, is amended by
amending Subsections (a), (a-1), (b), (b-1), (c), (d), (d-1), (e),
(f), (f-1), (g), and (i) and adding Subsections (j) and (k) to read
as follows:
(a) The owner or lessee of, or the holder of another
possessory interest in, any qualified property described by Section
313.021(2)(A), (B), or (C) may apply to the comptroller [governing
body of the school district in which the property is located] for a
limitation on the appraised value for school district maintenance
and operations ad valorem tax purposes of the person's qualified
property. An application must be made on the form prescribed by the
comptroller and include the information required by the
comptroller, and it must be accompanied by:
(1) the application fee established by the comptroller
[governing body of the school district];
(2) information sufficient to show that the real and
personal property identified in the application as qualified
property meets the applicable criteria established by Section
313.021(2); and
(3) information relating to each applicable criterion
listed in Section 313.026.
(a-1) Within seven days of the receipt of each document, the
comptroller [school district] shall submit to the governing body of
the school district in which the property is located [comptroller]
a copy of the application and any proposed [the] agreement between
the applicant and the comptroller [school district]. If an
economic analysis of the proposed project is submitted to the
comptroller [school district], the comptroller [district] shall
submit a copy of the analysis to the school district [comptroller].
In addition, the comptroller [school district] shall submit to the
school district [comptroller] any subsequent revision of or
amendment to any of those documents within seven days of its
receipt. The comptroller shall publish each document received
[from the school district] under this subsection on the
comptroller's Internet website. If the school district maintains a
generally accessible Internet website, the district shall provide
on its website a link to the location of those documents posted on
the comptroller's website in compliance with this subsection. This
subsection does not require the comptroller to post information
that is confidential under Section 313.028.
(b) [The governing body of a school district is not required
to consider an application for a limitation on appraised value that
is filed with the governing body under Subsection (a). If the
governing body of the school district does elect to consider an
application, the governing body shall deliver three copies of the
application to the comptroller and request that the comptroller
provide an economic impact evaluation of the application to the
school district.] Except as provided by Subsection (b-1), the
comptroller shall conduct or contract with a third person to
conduct an economic impact [the] evaluation of the application,
which shall be completed and provided to the governing body of the
school district as soon as practicable. The governing body shall
provide to the comptroller or third person any requested
information. A methodology to allow comparisons of economic impact
for different schedules of the addition of qualified investment or
qualified property may be developed as part of the economic impact
evaluation. The comptroller [governing body] shall provide a copy
of the evaluation to the applicant on request. [The comptroller may
charge and collect a fee sufficient to cover the costs of providing
the economic impact evaluation.] The comptroller [governing body
of a school district] shall approve or disapprove an application
before the 151st day after the date the application is filed, unless
the recommendation of the governing body [economic impact
evaluation] has not been received or an extension is agreed to by
the comptroller [governing body] and the applicant.
(b-1) The comptroller shall indicate on a [one] copy of the
application the date the comptroller received the application and
deliver that copy to the Texas Education Agency. The Texas
Education Agency shall determine the effect that the applicant's
proposal will have on the number or size of the school district's
instructional facilities, as required to be included in the
economic impact evaluation by Section 313.026(a)(12)
[313.026(a)(9)], and submit a written report containing the
agency's determination to the comptroller. The governing body of
the school district shall provide any requested information to the
Texas Education Agency. Not later than the 45th day after the date
the application indicates that the comptroller received the
application, the Texas Education Agency shall make the required
determination and submit the agency's written report to the
comptroller. A third person contracted by the comptroller to
conduct an economic impact evaluation of an application is not
required to make a determination that the Texas Education Agency is
required to make and report to the comptroller under this
subsection.
(c) In determining whether to grant an application, the
comptroller [governing body of the school district] is entitled to
request and receive assistance from:
(1) the governing body of the school district
[comptroller];
(2) the Texas [Department of] Economic Development and
Tourism Office;
(3) the Texas Workforce Investment Council; and
(4) the Texas Workforce Commission.
(d) Before the 46th day [91st day] after the date the school
district [comptroller] receives the economic impact evaluation
[copy of the application], the governing body of the district
[comptroller] shall submit a recommendation to the comptroller
[governing body of the school district] as to whether the
application should be approved or disapproved.
(d-1) The comptroller [governing body of a school district]
may approve an application [that the comptroller has recommended
should be disapproved] only if[:
[(1)] the governing body of the school district
recommends that the application be approved [holds a public hearing
the sole purpose of which is to consider the application and the
comptroller's recommendation; and
[(2) at a subsequent meeting of the governing body
held after the date of the public hearing, at least two-thirds of
the members of the governing body vote to approve the application].
(e) Before approving or disapproving an application under
this subchapter [that the governing body elects to consider], the
comptroller [governing body of the school district] must make a
written finding as to each criterion listed in Section 313.026. The
comptroller [governing body] shall deliver a copy of those findings
to the school district and the applicant.
(f) The comptroller [governing body] may approve an
application only if the comptroller [governing body] finds that the
information in the application is true and correct, finds under
Subsection (h) that the applicant is eligible for the limitation on
the appraised value of the person's qualified property, and
determines that granting the application is in the best interest of
the school district and this state.
(f-1) Notwithstanding any other provision of this chapter
to the contrary, including Section 313.003(2) or 313.004(3)(A) or
(B)(iii), the comptroller [governing body of a school district] may
waive the new jobs creation requirement in Section
313.021(2)(A)(iv)(b) or 313.051(b) and approve an application if
the comptroller [governing body] makes a finding that the jobs
creation requirement exceeds the industry standard for the number
of employees reasonably necessary for the operation of the facility
of the property owner that is described in the application.
(g) The Texas [Department of] Economic Development and
Tourism Office or its successor may recommend that the comptroller
[a school district] grant a person a limitation on appraised value
under this chapter. In determining whether to grant an
application, the comptroller [governing body of the school
district] shall consider any recommendation made by the Texas
[Department of] Economic Development and Tourism Office or its
successor.
(i) If the comptroller's determination under Subsection (h)
that the property does not meet the requirements of Section 313.024
for eligibility for a limitation on appraised value under this
subchapter becomes final, the comptroller is not required to
conduct [provide] an economic impact evaluation of the application,
the governing body of the school district is not required [or] to
submit a recommendation to the comptroller [school district] as to
whether the application should be approved or disapproved, and the
comptroller [governing body of the school district] may not grant
the application.
(j) Unless Subsection (i) applies, if the governing body of
the school district submits a recommendation to the comptroller
that the comptroller approve the application and the comptroller
disapproves the application, the governing body of the school
district may approve the application if:
(1) the property owner requests that the governing
body approve the application;
(2) the governing body holds a public hearing the sole
purpose of which is to consider the application and the
comptroller's disapproval of the application; and
(3) at a subsequent meeting of the governing body held
after the date of the public hearing, at least two-thirds of the
members of the governing body vote to approve the application.
(k) If the governing body of the school district approves
the application under Subsection (j), the governing body of the
school district and the property owner shall enter into a written
agreement for the implementation of a limitation on appraised value
for school district maintenance and operations ad valorem tax
purposes of the owner's qualified property. The provisions of this
subchapter governing an agreement between the comptroller and the
property owner apply to an agreement between the governing body of
the school district and the property owner.
SECTION 5. Section 313.026, Tax Code, is amended to read as
follows:
Sec. 313.026. ECONOMIC IMPACT EVALUATION. (a) The
economic impact evaluation of the application must include the
following:
(1) [the recommendations of the comptroller;
[(2)] the name of the school district;
(2) [(3)] the name of the applicant;
(3) [(4)] the general nature of the applicant's
investment;
(4) [(5)] the relationship between the applicant's
industry and the types of qualifying jobs to be created by the
applicant to the long-term economic growth plans of this state as
described in the strategic plan for economic development submitted
by the Texas Strategic Economic Development Planning Commission
under Section 481.033, Government Code, as that section existed
before February 1, 1999;
(5) an evaluation of [(6)] the relative level of the
applicant's investment per qualifying job to be created by the
applicant;
(6) an evaluation of [(7)] the number of qualifying
jobs to be created by the applicant;
(7) an evaluation of [(8)] the wages, salaries, and
benefits to be offered by the applicant to qualifying job holders;
(8) an evaluation of [(9)] the ability of the
applicant to locate or relocate in another state or another region
of this state;
(9) an evaluation of [(10)] the impact the project
will have on this state and individual local units of government,
including:
(A) tax and other revenue gains, direct or
indirect, that would be realized during the qualifying time period,
the limitation period, and a period of time after the limitation
period considered appropriate by the comptroller; and
(B) economic effects of the project, including
the impact on jobs and income, during the qualifying time period,
the limitation period, and a period of time after the limitation
period considered appropriate by the comptroller;
(10) [(11)] the economic condition of the region of
the state at the time the person's application is being considered
and the impact of the project on the region;
(11) [(12)] the number of new facilities built or
expanded in the region during the two years preceding the date of
the application that were eligible to apply for a limitation on
appraised value under this subchapter;
(12) [(13)] the effect of the applicant's proposal, if
approved, on the number or size of the school district's
instructional facilities, as defined by Section 46.001, Education
Code;
(13) [(14)] the projected market value of the
qualified property of the applicant as determined by the
comptroller;
(14) [(15)] the proposed limitation on appraised
value for the qualified property of the applicant;
(15) [(16)] the projected dollar amount of the taxes
that would be imposed on the qualified property, for each year of
the agreement, if the property does not receive a limitation on
appraised value with assumptions of the projected appreciation or
depreciation of the investment and projected tax rates clearly
stated;
(16) [(17)] the projected dollar amount of the taxes
that would be imposed on the qualified property, for each tax year
of the agreement, if the property receives a limitation on
appraised value with assumptions of the projected appreciation or
depreciation of the investment clearly stated;
(17) [(18)] the projected effect on the Foundation
School Program of payments to the district for each year of the
agreement;
(18) [(19)] the projected future tax credits if the
applicant also applies for school tax credits under Section
313.103; and
(19) [(20)] the total amount of taxes projected to be
lost or gained by the district over the life of the agreement
computed by subtracting the projected taxes stated in Subdivision
(16) [(17)] from the projected taxes stated in Subdivision (15)
[(16)].
(b) The comptroller's determination [recommendations]
shall be based on the criteria listed in Subsections (a)(4)-(19)
[(a)(5)-(20)] and on any other information available to the
comptroller, including information provided by the governing body
of the school district under Section 313.025(b).
SECTION 6. Section 313.0265(c), Tax Code, is amended to
read as follows:
(c) If a school district maintains a generally accessible
Internet website, the district shall maintain a link on its
Internet website to the area of the comptroller's Internet website
where information on each of the [district's] agreements to limit
appraised value entered into by the comptroller on behalf of the
district is maintained.
SECTION 7. Section 313.027, Tax Code, is amended by
amending Subsections (a), (b), (c), (d), (e), (f), (h), and (i) and
adding Subsection (b-1) to read as follows:
(a) If the person's application is approved by the
comptroller [governing body of the school district], for each of
the first eight tax years that begin after the applicable
qualifying time period, the appraised value for school district
maintenance and operations ad valorem tax purposes of the person's
qualified property as described in the agreement between the person
and the comptroller [district] entered into under this section in
the school district may not exceed the lesser of:
(1) the market value of the property; or
(2) subject to Subsection (b), the amount agreed to by
the comptroller [governing body of the school district].
(b) Except as provided by Subsection (b-1), the [The] amount
agreed to by the comptroller [governing body of a school district]
under Subsection (a)(2) must be an amount in accordance with the
following, according to the category established by Section 313.022
to which the school district belongs:
CATEGORY MINIMUM AMOUNT OF LIMITATION CATEGORY MINIMUM AMOUNT OF LIMITATION
CATEGORY MINIMUM AMOUNT OF LIMITATION
I $100 million I $100 million
I $100 million
II $80 million II $80 million
II $80 million
III $60 million III $60 million
III $60 million
IV $40 million IV $40 million
IV $40 million
V $20 million V $20 million
V $20 million
(b-1) In the case of property used in connection with
renewable energy electric generation, the amount agreed to by the
comptroller under Subsection (a)(2) must be an amount in accordance
with the following, according to the category established by
Section 313.022 to which the school district belongs:
CATEGORY MINIMUM AMOUNT OF LIMITATION CATEGORY MINIMUM AMOUNT OF LIMITATION
CATEGORY MINIMUM AMOUNT OF LIMITATION
I $100 million I $100 million
I $100 million
II $80 million II $80 million
II $80 million
III $60 million III $60 million
III $60 million
IV $40 million IV $40 million
IV $40 million
V $20 million V $20 million
V $20 million
(c) The limitation amounts listed in Subsections
[Subsection] (b) and (b-1) are minimum amounts. The comptroller [A
school district], regardless of the category of the school
district, may agree to a greater amount than those amounts.
(d) The comptroller [governing body of the school district]
and the property owner shall enter into a written agreement for the
implementation of the limitation on appraised value under this
subchapter on the owner's qualified property. The agreement and
any amendment to the agreement must be approved by the governing
body of the school district.
(e) The agreement must describe with specificity the
qualified investment that the person will make on or in connection
with the person's qualified property that is subject to the
limitation on appraised value under this subchapter. Other
property of the person that is not specifically described in the
agreement is not subject to the limitation unless the comptroller
[governing body of the school district], by official action,
provides that the other property is subject to the limitation.
(f) In addition, the agreement:
(1) must incorporate each relevant provision of this
subchapter and, to the extent necessary, include provisions for the
protection of future school district revenues through the
adjustment of the minimum valuations, the payment of revenue
offsets, and other mechanisms agreed to by the property owner and
the comptroller [school district];
(2) may provide that the property owner will protect
the school district in the event the district incurs extraordinary
education-related expenses related to the project that are not
directly funded in state aid formulas, including expenses for the
purchase of portable classrooms and the hiring of additional
personnel to accommodate a temporary increase in student enrollment
attributable to the project;
(3) must require the property owner to maintain a
viable presence in the school district for at least three years
after the date the limitation on appraised value of the owner's
property expires;
(4) must provide for the termination of the agreement,
the recapture of ad valorem tax revenue lost as a result of the
agreement if the owner of the property fails to comply with the
terms of the agreement, and payment of a penalty or interest, or
both, on that recaptured ad valorem tax revenue;
(5) may specify any conditions the occurrence of which
will require the comptroller [district] and the property owner to
renegotiate all or any part of the agreement; [and]
(6) must specify the ad valorem tax years covered by
the agreement; and
(7) must specify the number of qualifying jobs
required to be created during each year of the agreement.
(h) The agreement between the comptroller [governing body
of the school district] and the applicant may provide for a deferral
of the date on which the qualifying time period for the project is
to commence or, subsequent to the date the agreement is entered
into, be amended to provide for such a deferral. This subsection
may not be construed to permit a qualifying time period that has
commenced to continue for more than the number of years applicable
to the project under Section 313.021(4).
(i) A person and the comptroller [school district] may not
enter into an agreement under which the person agrees to provide
supplemental payments to a school district in an amount that
exceeds an amount equal to $100 per student per year in average
daily attendance, as defined by Section 42.005, Education Code, or
for a period that exceeds the period beginning with the period
described by Section 313.021(4) and ending with the period
described by Section 313.104(2)(B) of this code. This limit does
not apply to amounts described by Subsection (f)(1) or (2) of this
section.
SECTION 8. Section 313.0275(a), Tax Code, is amended to
read as follows:
(a) Notwithstanding any other provision of this chapter to
the contrary, a person with whom the comptroller [a school
district] enters into an agreement under this subchapter must make
the minimum amount of qualified investment during the qualifying
time period and create the required number of qualifying jobs
during each year of the agreement.
SECTION 9. Section 313.028, Tax Code, is amended to read as
follows:
Sec. 313.028. CERTAIN BUSINESS INFORMATION CONFIDENTIAL.
Information provided to a school district or the comptroller in
connection with an application for a limitation on appraised value
under this subchapter that describes the specific processes or
business activities to be conducted or the specific tangible
personal property to be located on real property covered by the
application shall be segregated in the application from other
information in the application and is confidential and not subject
to public disclosure unless the comptroller [governing body of the
school district] approves the application. Other information in
the custody of a school district or the comptroller in connection
with the application, including information related to the economic
impact of a project or the essential elements of eligibility under
this chapter, such as the nature and amount of the projected
investment, employment, wages, and benefits, may not be considered
confidential business information if the comptroller [governing
body of the school district] agrees to consider the application.
Information in the custody of a school district or the comptroller
if the comptroller [governing body] approves the application is not
confidential under this section.
SECTION 10. Section 313.031(b), Tax Code, is amended to
read as follows:
(b) The comptroller [governing body of a school district] by
official action shall establish reasonable nonrefundable
application fees to be paid by property owners who apply to the
comptroller [district] for a limitation on the appraised value of
the person's property under this subchapter. The amount of an
application fee must be reasonable and may not exceed the estimated
cost to the comptroller [district] of processing and acting on an
application, including the cost of the economic impact evaluation
required by Sections 313.025 and 313.026.
SECTION 11. Section 313.051(b), Tax Code, is amended to
read as follows:
(b) The comptroller [governing body of a school district to
which this subchapter applies] may enter into an agreement on
behalf of a school district to which this subchapter applies in the
same manner as the comptroller may enter into an agreement on behalf
of a school district to which Subchapter B applies [may do so] under
Subchapter B, subject to Sections 313.052-313.054. Except as
otherwise provided by this subchapter, the provisions of Subchapter
B apply to a school district to which this subchapter applies. For
purposes of this subchapter, a property owner is required to create
only at least 100 new jobs on the owner's qualified property if the
property is used in connection with manufacturing, research and
development, or nuclear electric power generation, 25 new jobs on
the owner's qualified property if the property is used in
connection with renewable energy electric generation, or 25 [10]
new jobs on the owner's qualified property if the property is used
in connection with another activity. At least 80 percent of all the
new jobs created by the property owner must be qualifying jobs as
defined by Section 313.021(3), except that, for a school district
described by Subsection (a)(2), each qualifying job must pay at
least 110 percent of the average weekly wage for manufacturing jobs
in the region designated for the regional planning commission,
council of governments, or similar regional planning agency created
under Chapter 391, Local Government Code, in which the district is
located.
SECTION 12. Section 313.053, Tax Code, is amended to read as
follows:
Sec. 313.053. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. (a)
Except as provided by Subsection (b), for [For] each category of
school district established by Section 313.052, the minimum amount
of a qualified investment under Section 313.021(2)(A)(iv)(a) is as
follows:
CATEGORY MINIMUM QUALIFIED INVESTMENT CATEGORY MINIMUM QUALIFIED INVESTMENT
CATEGORY MINIMUM QUALIFIED INVESTMENT
I $30 million I $30 million
I $30 million
II $20 million II $20 million
II $20 million
III $10 million III $10 million
III $10 million
IV $5 million IV $5 million
IV $5 million
V $1 million V $1 million
V $1 million
(b) For each category of school district established by
Section 313.052, the minimum amount of a qualified investment under
Section 313.021(2)(A)(iv)(a) in the case of property used in
connection with renewable energy electric generation is as follows:
CATEGORY MINIMUM QUALIFIED INVESTMENT CATEGORY MINIMUM QUALIFIED INVESTMENT
CATEGORY MINIMUM QUALIFIED INVESTMENT
I $30 million I $30 million
I $30 million
II $20 million II $20 million
II $20 million
III $10 million III $10 million
III $10 million
IV $5 million IV $5 million
IV $5 million
V $1 million V $1 million
V $1 million
SECTION 13. Section 313.054, Tax Code, is amended to read as
follows:
Sec. 313.054. LIMITATION ON APPRAISED VALUE. (a) Except as
provided by Subsection (a-1), for [For] a school district to which
this subchapter applies, the amount agreed to by the comptroller
[governing body of the district] under Section 313.027(a)(2) must
be an amount in accordance with the following, according to the
category established by Section 313.052 to which the school
district belongs:
CATEGORY MINIMUM AMOUNT OF LIMITATION CATEGORY MINIMUM AMOUNT OF LIMITATION
CATEGORY MINIMUM AMOUNT OF LIMITATION
I $30 million I $30 million
I $30 million
II $20 million II $20 million
II $20 million
III $10 million III $10 million
III $10 million
IV $5 million IV $5 million
IV $5 million
V $1 million V $1 million
V $1 million
(a-1) In the case of property used in connection with
renewable energy electric generation, for a school district to
which this subchapter applies, the amount agreed to by the
comptroller under Section 313.027(a)(2) must be an amount in
accordance with the following, according to the category
established by Section 313.052 to which the school district
belongs:
CATEGORY MINIMUM AMOUNT OF LIMITATION CATEGORY MINIMUM AMOUNT OF LIMITATION
CATEGORY MINIMUM AMOUNT OF LIMITATION
I $30 million I $30 million
I $30 million
II $20 million II $20 million
II $20 million
III $10 million III $10 million
III $10 million
IV $5 million IV $5 million
IV $5 million
V $1 million V $1 million
V $1 million
(b) The limitation amounts listed in Subsections
[Subsection] (a) and (a-1) are minimum amounts. The comptroller [A
school district], regardless of the category of the school
district, may agree to a greater amount than those amounts.
SECTION 14. Section 313.102(a), Tax Code, is amended to
read as follows:
(a) In addition to the limitation on the appraised value of
the person's qualified property under Subchapter B or C, a person is
entitled to a tax credit from the school district on behalf of which
the comptroller [that] approved the limitation in an amount equal
to the amount of ad valorem taxes paid to that school district that
were imposed on the portion of the appraised value of the qualified
property that exceeds the amount of the limitation agreed to by the
comptroller [governing body of the school district] under Section
313.027(a)(2) in each year in the applicable qualifying time
period.
SECTION 15. Section 403.302(d), Government Code, as amended
by Chapters 1186 (H.B. 3676) and 1328 (H.B. 3646), Acts of the 81st
Legislature, Regular Session, 2009, is reenacted and amended to
read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by Section 311.003(e), Tax Code, before May 31, 1999, and
within the boundaries of the zone as those boundaries existed on
September 1, 1999, including subsequent improvements to the
property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) the total dollar amount of any captured appraised
value of property that:
(A) is within a reinvestment zone:
(i) created on or before December 31, 2008,
by a municipality with a population of less than 18,000; and
(ii) the project plan for which includes
the alteration, remodeling, repair, or reconstruction of a
structure that is included on the National Register of Historic
Places and requires that a portion of the tax increment of the zone
be used for the improvement or construction of related facilities
or for affordable housing;
(B) generates school district taxes that are paid
into a tax increment fund created under Chapter 311, Tax Code; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(6) the total dollar amount of any exemptions granted
under Section 11.251 or 11.253, Tax Code;
(7) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(8) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26, Tax Code, on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(9) a portion of the market value of property not
otherwise fully taxable by the district at market value because of:
(A) action required by statute or the
constitution of this state that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted; or
(B) action taken by the district or by the
comptroller on behalf of the district under Subchapter B or C,
Chapter 313, Tax Code, before the expiration of the subchapter;
(10) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(11) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(12) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code; and
(13) the amount by which the market value of a
residence homestead to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section.
SECTION 16. Section 403.302(m), Government Code, as added
by Chapter 1186 (H.B. 3676), Acts of the 81st Legislature, Regular
Session, 2009, is amended to conform to Section 80, Chapter 1328
(H.B. 3646), Acts of the 81st Legislature, Regular Session, 2009:
(m) Subsection (d)(9) [(d)(10)] does not apply to property
that was the subject of an application under Subchapter B or C,
Chapter 313, Tax Code, made after May 1, 2009, that the comptroller
recommended should be disapproved.
SECTION 17. To the extent of any conflict, this Act prevails
over another Act of the 82nd Legislature, Regular Session, 2011,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 18. Section 313.007. Tax Code, is amended to read
as follows:
Section, 313.007. EXPIRATION. Subchapters B, C, and D
expire December 31, 2022 [2014].
SECTION 19. Chapter 313, Tax Code, as amended by this Act,
applies only to an application filed under that chapter on or after
the effective date of this Act. An application filed under that
chapter before the effective date of this Act is governed by the law
in effect on the date the application was filed, and the former law
is continued in effect for that purpose.
SECTION 20. This Act takes effect September 1, 2011.
CATEGORY MINIMUM QUALIFIED INVESTMENT
I $100 million
II $80 million
III $60 million
IV $40 million
V $20 million
CATEGORY MINIMUM QUALIFIED INVESTMENT
I $100 million
II $80 million
III $60 million
IV $40 million
V $20 million
CATEGORY MINIMUM AMOUNT OF LIMITATION
I $100 million
II $80 million
III $60 million
IV $40 million
V $20 million
CATEGORY MINIMUM AMOUNT OF LIMITATION
I $100 million
II $80 million
III $60 million
IV $40 million
V $20 million
CATEGORY MINIMUM QUALIFIED INVESTMENT
I $30 million
II $20 million
III $10 million
IV $5 million
V $1 million
CATEGORY MINIMUM QUALIFIED INVESTMENT
I $30 million
II $20 million
III $10 million
IV $5 million
V $1 million
CATEGORY MINIMUM AMOUNT OF LIMITATION
I $30 million
II $20 million
III $10 million
IV $5 million
V $1 million
CATEGORY MINIMUM AMOUNT OF LIMITATION
I $30 million
II $20 million
III $10 million
IV $5 million
V $1 million