82R24016 ALL-F
By: J. Davis of Harris, Miles, Reynolds, H.B. No. 2853
Sheets, Anderson of Dallas, et al.
Substitute the following for H.B. No. 2853:
By: Vo C.S.H.B. No. 2853
A BILL TO BE ENTITLED
AN ACT
relating to tax increment financing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 311.002(1), Tax Code, is amended to read
as follows:
(1) "Project costs" means the expenditures made or
estimated to be made and monetary obligations incurred or estimated
to be incurred by the municipality or county designating
[establishing] a reinvestment zone that are listed in the project
plan as costs of public works, [or] public improvements, programs,
or other projects benefiting [in] the zone, plus other costs
incidental to those expenditures and obligations. "Project costs"
include:
(A) capital costs, including the actual costs of
the acquisition and construction of public works, public
improvements, new buildings, structures, and fixtures; the actual
costs of the acquisition, demolition, alteration, remodeling,
repair, or reconstruction of existing buildings, structures, and
fixtures; the actual costs of the remediation of conditions that
contaminate public or private land or buildings; the actual costs
of the preservation of the facade of a public or private building;
the actual costs of the demolition of public or private buildings;
and the actual costs of the acquisition of land and equipment and
the clearing and grading of land;
(B) financing costs, including all interest paid
to holders of evidences of indebtedness or other obligations issued
to pay for project costs and any premium paid over the principal
amount of the obligations because of the redemption of the
obligations before maturity;
(C) real property assembly costs;
(D) professional service costs, including those
incurred for architectural, planning, engineering, and legal
advice and services;
(E) imputed administrative costs, including
reasonable charges for the time spent by employees of the
municipality or county in connection with the implementation of a
project plan;
(F) relocation costs;
(G) organizational costs, including the costs of
conducting environmental impact studies or other studies, the cost
of publicizing the creation of the zone, and the cost of
implementing the project plan for the zone;
(H) interest before and during construction and
for one year after completion of construction, whether or not
capitalized;
(I) the cost of operating the reinvestment zone
and project facilities;
(J) the amount of any contributions made by the
municipality or county from general revenue for the implementation
of the project plan; [and]
(K) the costs of a program described by Section
311.010(h);
(L) the costs of school buildings, other
educational buildings, other educational facilities, or other
buildings owned by or on behalf of a school district, community
college district, or other political subdivision of this state; and
(M) payments made at the discretion of the
governing body of the municipality or county that the governing
body finds necessary or convenient to the creation of the zone or to
the implementation of the project plans for the zone.
SECTION 2. Section 311.003(b), Tax Code, is amended to read
as follows:
(b) Before adopting an ordinance or order designating
[providing for] a reinvestment zone, the governing body of the
municipality or county must prepare a preliminary reinvestment zone
financing plan. [As soon as the plan is completed, a copy of the
plan must be sent to the governing body of each taxing unit that
levies taxes on real property in the proposed zone.]
SECTION 3. Section 311.005(a), Tax Code, is amended to read
as follows:
(a) To be designated as a reinvestment zone, an area must:
(1) substantially arrest or impair the sound growth of
the municipality or county designating [creating] the zone, retard
the provision of housing accommodations, or constitute an economic
or social liability and be a menace to the public health, safety,
morals, or welfare in its present condition and use because of the
presence of:
(A) a substantial number of substandard, slum,
deteriorated, or deteriorating structures;
(B) the predominance of defective or inadequate
sidewalk or street layout;
(C) faulty lot layout in relation to size,
adequacy, accessibility, or usefulness;
(D) unsanitary or unsafe conditions;
(E) the deterioration of site or other
improvements;
(F) tax or special assessment delinquency
exceeding the fair value of the land;
(G) defective or unusual conditions of title;
(H) conditions that endanger life or property by
fire or other cause; or
(I) structures, other than single-family
residential structures, less than 10 percent of the square footage
of which has been used for commercial, industrial, or residential
purposes during the preceding 12 years, if the municipality has a
population of 100,000 or more;
(2) be predominantly open, undeveloped, or
underdeveloped and, because of obsolete platting, deterioration of
structures or site improvements, or other factors, substantially
impair or arrest the sound growth of the municipality or county;
(3) be in a federally assisted new community located
in the municipality or county or in an area immediately adjacent to
a federally assisted new community; or
(4) be an area described in a petition requesting that
the area be designated as a reinvestment zone, if the petition is
submitted to the governing body of the municipality or county by the
owners of property constituting at least 50 percent of the
appraised value of the property in the area according to the most
recent certified appraisal roll for the county in which the area is
located.
SECTION 4. Sections 311.006(a) and (b), Tax Code, are
amended to read as follows:
(a) A municipality may not designate [create] a
reinvestment zone if:
(1) more than 30 [10] percent of the property in the
proposed zone, excluding property that is publicly owned, is used
for residential purposes; or
(2) the total appraised value of taxable real property
in the proposed zone and in existing reinvestment zones exceeds:
(A) 25 [20] percent of the total appraised value
of taxable real property in the municipality and in the industrial
districts created by the municipality, if the municipality has a
population of 100,000 or more [is the county seat of a county:
[(i) that is adjacent to a county with a
population of 3.3 million or more; and
[(ii) in which a planned community is
located that has 20,000 or more acres of land, that was originally
established under the Urban Growth and New Community Development
Act of 1970 (42 U.S.C. Section 4501 et seq.), and that is subject to
restrictive covenants containing ad valorem or annual variable
budget-based assessments on real property]; or
(B) 50 [15] percent of the total appraised value
of taxable real property in the municipality and in the industrial
districts created by the municipality, if [Paragraph (A) does not
apply to] the municipality has a population of less than 100,000.
(b) A municipality may not change the boundaries of an
existing reinvestment zone to include property in excess of the
restrictions on composition of a zone described by Subsection (a)
[more than 10 percent of which, excluding property dedicated to
public use, is used for residential purposes or to include more than
15 percent of the total appraised value of taxable real property in
the municipality and in the industrial districts created by the
municipality].
SECTION 5. The heading to Section 311.007, Tax Code, is
amended to read as follows:
Sec. 311.007. CHANGING BOUNDARIES OR TERM OF EXISTING ZONE.
SECTION 6. Section 311.007, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) The governing body of the municipality or county that
designated a reinvestment zone by ordinance or resolution or by
order or resolution, respectively, may extend the term of all or a
portion of the zone after notice and hearing in the manner provided
for the designation of the zone. A taxing unit other than the
municipality or county that designated the zone is not required to
participate in the zone or portion of the zone for the extended term
unless the taxing unit enters into a written agreement to do so.
SECTION 7. Section 311.008(b), Tax Code, is amended to read
as follows:
(b) A municipality or county may exercise any power
necessary and convenient to carry out this chapter, including the
power to:
(1) cause project plans to be prepared, approve and
implement the plans, and otherwise achieve the purposes of the
plan;
(2) acquire real property by purchase, condemnation,
or other means [to implement project plans] and sell real [that]
property, on the terms and conditions and in the manner it considers
advisable, to implement project plans;
(3) enter into agreements, including agreements with
bondholders, determined by the governing body of the municipality
or county to be necessary or convenient to implement project plans
and achieve their purposes, which agreements may include
conditions, restrictions, or covenants that run with the land or
that by other means regulate or restrict the use of land; and
(4) consistent with the project plan for the zone:
(A) acquire blighted, deteriorated,
deteriorating, undeveloped, or inappropriately developed real
property or other property in a blighted area or in a federally
assisted new community in the zone for the preservation or
restoration of historic sites, beautification or conservation, the
provision of public works or public facilities, or other public
purposes;
(B) acquire, construct, reconstruct, or install
public works, facilities, or sites or other public improvements,
including utilities, streets, street lights, water and sewer
facilities, pedestrian malls and walkways, parks, flood and
drainage facilities, or parking facilities, but not including
educational facilities; or
(C) in a reinvestment zone created on or before
September 1, 1999, acquire, construct, or reconstruct educational
facilities in the municipality.
SECTION 8. Sections 311.009(a), (b), and (e), Tax Code, are
amended to read as follows:
(a) Except as provided by Subsection (b), the board of
directors of a reinvestment zone consists of at least five and not
more than 15 members, unless more than 15 members are required to
satisfy the requirements of this subsection. Each taxing unit other
than the municipality or county that designated [created] the zone
that levies taxes on real property in the zone may appoint one
member of the board if the taxing unit has approved the payment of
all or part of the tax increment produced by the unit into the tax
increment fund for the zone. A unit may waive its right to appoint a
director. The governing body of the municipality or county that
designated [created] the zone may appoint not more than 10
directors to the board; except that if there are fewer than five
directors appointed by taxing units other than the municipality or
county, the governing body of the municipality or county may
appoint more than 10 members as long as the total membership of the
board does not exceed 15.
(b) If the zone was designated under Section 311.005(a)(4),
the governing body of the municipality or county that designated
the zone may provide that the board of directors of the zone
consists of nine members appointed as provided by this subsection,
unless more than nine members are required to comply with this
subsection. Each taxing unit [school district, county, or
municipality], other than the municipality or county that
designated [created] the zone, that levies taxes on real property
in the zone may appoint one member of the board if the taxing unit
[school district, county, or municipality] has approved the payment
of all or part of the tax increment produced by the unit into the tax
increment fund for the zone. The member of the state senate in whose
district the zone is located is a member of the board, and the
member of the state house of representatives in whose district the
zone is located is a member of the board, except that either may
designate another individual to serve in the member's place at the
pleasure of the member. If the zone is located in more than one
senate or house district, this subsection applies only to the
senator or representative in whose district a larger portion of the
zone is located than any other senate or house district, as
applicable. If fewer than seven taxing units, other than the
municipality or county that designated the zone, are eligible to
appoint members of the board of directors of the zone, the
municipality or county may appoint a number of members of the board
such that the board comprises nine members. If at least seven taxing
units, other than the municipality or county that designated the
zone, are eligible to appoint members of the board of directors of
the zone, the municipality or county may appoint one member. [The
remaining members of the board are appointed by the governing body
of the municipality or county that created the zone.]
(e) To be eligible for appointment to the board by the
governing body of the municipality or county that designated
[created] the zone, an individual must be at least 18 years of age
and:
(1) if the board is covered by Subsection (a):
(A) be a resident of the county in which the zone
is located or a county adjacent to that county [qualified voter of
the municipality or county, as applicable]; or
(B) [be at least 18 years of age and] own real
property in the zone, whether or not the individual resides in the
[municipality or] county in which the zone is located or a county
adjacent to that county; or
(2) if the board is covered by Subsection (b), [:
[(A) be at least 18 years of age; and
[(B)] own real property in the zone or be an
employee or agent of a person that owns real property in the zone.
SECTION 9. Section 311.0091, Tax Code, is amended by
amending Subsection (f) and adding Subsection (i) to read as
follows:
(f) Except as provided by Subsection (i), to [To] be
eligible for appointment to the board, an individual must:
(1) be a qualified voter of the municipality; or
(2) be at least 18 years of age and own real property
in the zone or be an employee or agent of a person that owns real
property in the zone.
(i) The eligibility criteria for appointment to the board
specified by Subsection (f) do not apply to an individual appointed
by a conservation and reclamation district:
(1) created under Section 59, Article XVI, Texas
Constitution; and
(2) the jurisdiction of which covers four counties.
SECTION 10. Sections 311.010(g) and (h), Tax Code, are
amended to read as follows:
(g) Chapter 252, Local Government Code, does not apply to a
dedication, pledge, or other use of revenue in the tax increment
fund for a reinvestment zone [by the board of directors of the zone
in carrying out its powers] under Subsection (b).
(h) Subject to the approval of the governing body of the
municipality or county that designated [created] the zone, the
board of directors of a reinvestment zone, as necessary or
convenient to implement the project plan and reinvestment zone
financing plan and achieve their purposes, may establish and
provide for the administration of one or more programs for the
public purposes of developing and diversifying the economy of the
zone, eliminating unemployment and underemployment in the zone, and
developing or expanding transportation, business, and commercial
activity in the zone, including programs to make grants and loans
[from the tax increment fund of the zone in an aggregate amount not
to exceed the amount of the tax increment produced by the
municipality and paid into the tax increment fund for the zone] for
activities that benefit the zone and stimulate business and
commercial activity in the zone. For purposes of this subsection,
on approval of the municipality or county, the board of directors of
the zone has all the powers of a municipality under Chapter 380,
Local Government Code. The approval required by this subsection may
be granted in an ordinance, in the case of a zone designated by a
municipality, or in an order, in the case of a zone designated by a
county, approving a project plan or reinvestment zone financing
plan or approving an amendment to a project plan or reinvestment
zone financing plan.
SECTION 11. Section 311.011, Tax Code, is amended by
amending Subsections (a), (b), (c), (d), and (g) and adding
Subsection (h) to read as follows:
(a) The board of directors of a reinvestment zone shall
prepare and adopt a project plan and a reinvestment zone financing
plan for the zone and submit the plans to the governing body of the
municipality or county that designated [created] the zone. [The
plans must be as consistent as possible with the preliminary plans
developed for the zone before the creation of the board.]
(b) The project plan must include:
(1) a description of [map showing] existing uses and
conditions of real property in the zone and [a map showing] proposed
[improvements to and proposed] uses of that property;
(2) proposed changes of zoning ordinances, [the master
plan of the municipality,] building codes, other municipal
ordinances, and subdivision rules and regulations, if any, of the
county, if applicable; and
(3) [a list of estimated nonproject costs; and
[(4)] a statement of a method of relocating persons to
be displaced, if any, as a result of implementing the plan.
(c) The reinvestment zone financing plan must include:
(1) a detailed list describing the estimated project
costs of the zone, including administrative expenses;
(2) a statement listing the proposed kind, number, and
location of all [proposed] public works or public improvements to
be financed by [in] the zone;
(3) a finding that the plan is economically feasible
[an economic feasibility study];
(4) the estimated amount of bonded indebtedness to be
incurred;
(5) the estimated time when related costs or monetary
obligations are to be incurred;
(6) a description of the methods of financing all
estimated project costs and the expected sources of revenue to
finance or pay project costs, including the percentage of tax
increment to be derived from the property taxes of each taxing unit
anticipated to contribute tax increment to the zone that levies
taxes on real property in the zone;
(7) the current total appraised value of taxable real
property in the zone;
(8) the estimated captured appraised value of the zone
during each year of its existence; and
(9) the duration of the zone.
(d) The governing body of the municipality or county that
designated [created] the zone must approve a project plan or
reinvestment zone financing plan after its adoption by the board.
The approval must be by ordinance, in the case of a municipality, or
by order, in the case of a county, that finds that the plan is
feasible [and conforms to the master plan, if any, of the
municipality or to subdivision rules and regulations, if any, of
the county].
(g) A [An amendment to the project plan or the reinvestment
zone financing plan for a zone does not apply to a] school district
that participates in a [the] zone is not required to increase the
percentage or amount of the tax increment to be contributed by the
school district because of an amendment to the project plan or
reinvestment zone financing plan for the zone unless the governing
body of the school district by official action approves the
amendment[, if the amendment:
[(1) has the effect of directly or indirectly
increasing the percentage or amount of the tax increment to be
contributed by the school district; or
[(2) requires or authorizes the municipality or county
creating the zone to issue additional tax increment bonds or
notes].
(h) Unless specifically provided otherwise in the plan, all
amounts contained in the project plan or reinvestment zone
financing plan, including amounts of expenditures relating to
project costs and amounts relating to participation by taxing
units, are considered estimates and do not act as a limitation on
the described items. This subsection may not be construed to
increase the amount of any reduction under Section 403.302(d)(4),
Government Code, in the total taxable value of the property in a
school district that participates in the zone as computed under
Section 403.302(d) of that code.
SECTION 12. Sections 311.012(b) and (c), Tax Code, are
amended to read as follows:
(b) The captured appraised value of real property taxable by
a taxing unit for a year is the total taxable [appraised] value of
all real property taxable by the unit and located in a reinvestment
zone for that year less the tax increment base of the unit.
(c) The tax increment base of a taxing unit is the total
taxable [appraised] value of all real property taxable by the unit
and located in a reinvestment zone for the year in which the zone
was designated under this chapter. If the boundaries of a zone are
enlarged, the tax increment base is increased by the taxable value
of the real property added to the zone for the year in which the
property was added. If the boundaries of a zone are reduced, the tax
increment base is reduced by the taxable value of the real property
removed from the zone for the year in which the property was
originally included in the zone's boundaries. If the municipality
that designates a zone does not levy an ad valorem tax in the year in
which the zone is designated, the tax increment base is determined
by the appraisal district in which the zone is located using
assumptions regarding exemptions and other relevant information
provided to the appraisal district by the municipality.
SECTION 13. Sections 311.013(f) and (l), Tax Code, are
amended to read as follows:
(f) A taxing unit is not required to pay into the tax
increment fund any of its tax increment produced from property
located in a reinvestment zone designated under Section 311.005(a)
or in an area added to a reinvestment zone under Section 311.007
unless the taxing unit enters into an agreement to do so with the
governing body of the municipality or county that designated
[created] the zone. A taxing unit may enter into an agreement under
this subsection at any time before or after the zone is designated
[created] or enlarged. The agreement may include conditions for
payment of that tax increment into the fund and must specify the
portion of the tax increment to be paid into the fund and the years
for which that tax increment is to be paid into the fund. In
addition to any other terms to which the parties may agree, the
agreement may specify the projects to which a participating taxing
unit's tax increment will be dedicated and that the taxing unit's
participation may be computed with respect to a base year later than
the original base year of the zone. The agreement and the conditions
in the agreement are binding on the taxing unit, the municipality or
county, and the board of directors of the zone.
(l) The governing body of a municipality or county that
designates an area as a reinvestment zone may determine, in the
designating ordinance or order adopted under Section 311.003 or in
the ordinance or order adopted under Section 311.011 approving the
reinvestment zone financing plan for the zone, the portion of the
tax increment produced by the municipality or county that the
municipality or county is required to pay into the tax increment
fund for the zone. If a municipality or county does not determine
the portion of the tax increment produced by the municipality or
county that the municipality or county is required to pay into the
tax increment fund for a reinvestment zone, the municipality or
county is required to pay into the fund for the zone the entire tax
increment produced by the municipality or county, except as
provided by Subsection (b)(1).
SECTION 14. Section 311.014(b), Tax Code, is amended to
read as follows:
(b) Money may be disbursed from the fund only to satisfy
claims of holders of tax increment bonds or notes issued for the
zone, to pay project costs for the zone, to make payments pursuant
to an agreement made under Section 311.010(b) or a program under
Section 311.010(h) dedicating revenue from the tax increment fund,
or to repay other obligations incurred for the zone.
SECTION 15. Sections 311.015(a) and (l), Tax Code, are
amended to read as follows:
(a) A municipality designating [creating] a reinvestment
zone may issue tax increment bonds or notes, the proceeds of which
may be used to make payments pursuant to agreements made under
Section 311.010(b), to make payments pursuant to programs under
Section 311.010(h), to pay project costs for the reinvestment zone
on behalf of which the bonds or notes were issued, or to satisfy
claims of holders of the bonds or notes. The municipality may issue
refunding bonds or notes for the payment or retirement of tax
increment bonds or notes previously issued by it.
(l) A tax increment bond or note must mature on or before the
date by which the final payments of tax increment into the tax
increment fund are due [within 20 years of the date of issue].
SECTION 16. Section 311.016(a), Tax Code, is amended to
read as follows:
(a) On or before the 150th [90th] day following the end of
the fiscal year of the municipality or county, the governing body of
a municipality or county shall submit to the chief executive
officer of each taxing unit that levies property taxes on real
property in a reinvestment zone created by the municipality or
county a report on the status of the zone. The report must include:
(1) the amount and source of revenue in the tax
increment fund established for the zone;
(2) the amount and purpose of expenditures from the
fund;
(3) the amount of principal and interest due on
outstanding bonded indebtedness;
(4) the tax increment base and current captured
appraised value retained by the zone; and
(5) the captured appraised value shared by the
municipality or county and other taxing units, the total amount of
tax increments received, and any additional information necessary
to demonstrate compliance with the tax increment financing plan
adopted by the governing body of the municipality or county.
SECTION 17. Section 311.016(b), Tax Code, as amended by
Chapters 977 (H.B. 1820) and 1094 (H.B. 2120), Acts of the 79th
Legislature, Regular Session, 2005, is reenacted to read as
follows:
(b) The municipality or county shall send a copy of a report
made under this section to:
(1) the attorney general; and
(2) the comptroller.
SECTION 18. Section 311.017(a), Tax Code, is amended to
read as follows:
(a) A reinvestment zone terminates on the earlier of:
(1) the termination date designated in the ordinance
or order, as applicable, designating [creating] the zone or an
earlier or later termination date designated by an ordinance or
order adopted under Section 311.007(c) [subsequent to the ordinance
or order creating the zone]; or
(2) the date on which all project costs, tax increment
bonds and interest on those bonds, and other obligations have been
paid in full.
SECTION 19. Chapter 311, Tax Code, is amended by adding
Section 311.021 to read as follows:
Sec. 311.021. ACT OR PROCEEDING PRESUMED VALID. (a) A
governmental act or proceeding of a municipality or county, the
board of directors of a reinvestment zone, or an entity acting under
Section 311.010(f) relating to the designation, operation, or
administration of a reinvestment zone or the implementation of a
project plan or reinvestment zone financing plan under this chapter
is conclusively presumed, as of the date it occurred, valid and to
have occurred in accordance with all applicable statutes and rules
if:
(1) the second anniversary of the effective date of
the act or proceeding has expired; and
(2) a lawsuit to annul or invalidate the act or
proceeding has not been filed on or before the later of that second
anniversary or August 1, 2011.
(b) This section does not apply to:
(1) an act or proceeding that was void at the time it
occurred;
(2) an act or proceeding that, under a statute of this
state or the United States, was a misdemeanor or felony at the time
the act or proceeding occurred;
(3) a rule that, at the time it was passed, was
preempted by a statute of this state or the United States, including
Section 1.06 or 109.57, Alcoholic Beverage Code; or
(4) a matter that on the effective date of the Act
enacting this section:
(A) is involved in litigation if the litigation
ultimately results in the matter being held invalid by a final
judgment of a court; or
(B) has been held invalid by a final judgment of a
court.
SECTION 20. 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 former 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 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 21. 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,
to read as follows:
(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 22. Sections 311.003(e), (f), and (g), 311.006(c),
and 311.013(d) and (e), Tax Code, are repealed.
SECTION 23. (a) The legislature validates and confirms all
governmental acts and proceedings of a municipality or county, the
board of directors of a reinvestment zone, or an entity acting under
Section 311.010(f), Tax Code, that were taken before the effective
date of this Act and relate to or are associated with the
designation, operation, or administration of a reinvestment zone or
the implementation of a project plan or reinvestment zone financing
plan under Chapter 311, Tax Code, including the extension of the
term of a reinvestment zone, as of the dates on which they occurred.
The acts and proceedings may not be held invalid because they were
not in accordance with Chapter 311, Tax Code, or other law.
(b) Subsection (a) of this section does not apply to any
matter that on the 30th day after the effective date of this Act:
(1) is involved in litigation if the litigation
ultimately results in the matter being held invalid by a final
judgment of a court; or
(2) has been held invalid by a final judgment of a
court.
SECTION 24. (a) Section 311.002(1), Tax Code, as amended by
this Act, applies to all costs described by that subdivision
regardless of when they were incurred.
(b) Section 311.012(c), Tax Code, as amended by this Act,
applies only to the determination of the tax increment base of a
taxing unit for a tax year beginning on or after the effective date
of this Act, except that if the tax increment base of a taxing unit
for a tax year beginning before the effective date was determined in
the manner provided by Section 311.012(c), Tax Code, as amended by
this Act, the determination is validated as if the amendment were in
accordance with Section 311.012(c), Tax Code, as that section
existed immediately before the effective date of this Act.
SECTION 25. 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 26. 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, 2011.