82R13503 SMH-F
By: Kolkhorst H.B. No. 3626
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 313.022(b), Tax Code, is amended to read
as follows:
(b) For purposes of determining the required minimum amount
of a qualified investment under Section 313.021(2)(A)(iv)(a), and
the base [minimum] amount of a limitation on appraised value under
Section 313.027(b), school districts to which this subchapter
applies are categorized according to the taxable value of property
in the district for the preceding tax year determined under
Subchapter M, Chapter 403, Government Code, as follows:
CATEGORY TAXABLE VALUE OF PROPERTY CATEGORY TAXABLE VALUE OF PROPERTY
CATEGORY TAXABLE VALUE OF PROPERTY
I $10 billion or more I $10 billion or more
I $10 billion or more
II $1 billion or more but less than $10 billion II $1 billion or more but less than $10 billion
II $1 billion or more but less than $10 billion
III $500 million or more but less than $1 billion III $500 million or more but less than $1 billion
III $500 million or more but less than $1 billion
IV $100 million or more but less than $500 million IV $100 million or more but less than $500 million
IV $100 million or more but less than $500 million
V less than $100 million V less than $100 million
V less than $100 million
SECTION 2. Section 313.027, Tax Code, is amended by
amending Subsections (a), (b), (c), (h), and (i) and adding
Subsection (j) to read as follows:
(a) If the person's application is approved by the 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 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 Subsections [Subsection] (b) and (c),
the amount agreed to by the governing body of the school district.
(b) The amount agreed to by the governing body of a school
district under Subsection (a)(2) must be based on an amount in
accordance with the following, according to the category
established by Section 313.022 to which the school district
belongs:
CATEGORY BASE [MINIMUM] AMOUNT OF LIMITATION CATEGORY BASE [MINIMUM] AMOUNT OF LIMITATION
CATEGORY BASE [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 amount of the appraised value of the property
established in an agreement may not be less than:
(1) for property used for a purpose described by
Section 313.024(b)(1), (2), (3), (4), (6), (7), or (8), the sum of:
(A) the applicable amount listed in Subsection
(b); and
(B) the product of 0.2 and the difference between
the market value of the property as annually determined by the chief
appraiser and the applicable amount listed in Subsection (b); and
(2) for property used for a purpose described by
Section 313.024(b)(5), the sum of:
(A) the applicable amount listed in Subsection
(b); and
(B) the product of 0.5 and the difference between
the market value of the property as annually determined by the chief
appraiser and the applicable amount listed in Subsection (b). [The
limitation amounts listed in Subsection (b) are minimum amounts. A
school district, regardless of category, may agree to a greater
amount than those amounts.]
(h) At any time before the applicant spends an amount that
is considered to be a qualified investment, the governing body of
the school district and the applicant may amend the agreement to
defer the date on which the qualifying time period for the project
is to commence. The commencement of the qualifying time period may
not be deferred to a date later than the second anniversary of the
date the qualifying time period was originally scheduled to end.
[The agreement between the 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). Any amount the applicant spends before the
date the qualifying time period commences may not be considered to
be a qualified investment.
(i) A person and the school district may not enter into an
agreement if in conjunction with the agreement any payments or
other benefits are to be provided by or on behalf of the person in
recognition or anticipation of, or in consideration for, the
district entering into the agreement, other than payments or
benefits authorized under Subsection (f)(1) or (2) [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].
(j) A school district may not enter into an agreement or an
amendment to an agreement under this section without the prior
approval of the comptroller.
SECTION 3. Section 313.052, Tax Code, is amended to read as
follows:
Sec. 313.052. CATEGORIZATION OF SCHOOL DISTRICTS. For
purposes of determining the required minimum amount of a qualified
investment under Section 313.021(2)(A)(iv)(a) and the base
[minimum] amount of a limitation on appraised value under this
subchapter, school districts to which this subchapter applies are
categorized according to the taxable value of industrial property
in the district for the preceding tax year determined under
Subchapter M, Chapter 403, Government Code, as follows:
CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY
CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY
I $200 million or more I $200 million or more
I $200 million or more
II $90 million or more but less than $200 million II $90 million or more but less than $200 million
II $90 million or more but less than $200 million
III $1 million or more but less than $90 million III $1 million or more but less than $90 million
III $1 million or more but less than $90 million
IV $100,000 or more but less than $1 million IV $100,000 or more but less than $1 million
IV $100,000 or more but less than $1 million
V less than $100,000 V less than $100,000
V less than $100,000
SECTION 4. Section 313.054, Tax Code, is amended to read as
follows:
Sec. 313.054. LIMITATION ON APPRAISED VALUE. (a) For a
school district to which this subchapter applies, the amount agreed
to by the governing body of the district under Section
313.027(a)(2) must be based on an amount in accordance with the
following, according to the category established by Section 313.052
to which the school district belongs:
CATEGORY BASE [MINIMUM] AMOUNT OF LIMITATION CATEGORY BASE [MINIMUM] AMOUNT OF LIMITATION
CATEGORY BASE [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 amount of the appraised value of the property
established in an agreement may not be less than:
(1) for property used for a purpose described by
Section 313.024(b)(1), (2), (3), (4), (6), (7), or (8), the sum of:
(A) the applicable amount listed in Subsection
(a); and
(B) the product of 0.2 and the difference between
the market value of the property as annually determined by the chief
appraiser and the applicable amount listed in Subsection (a); and
(2) for property used for a purpose described by
Section 313.024(b)(5), the sum of:
(A) the applicable amount listed in Subsection
(a); and
(B) the product of 0.5 and the difference between
the market value of the property as annually determined by the chief
appraiser and the applicable amount listed in Subsection (a). [The
limitation amounts listed in Subsection (a) are minimum amounts. A
school district, regardless of category, may agree to a greater
amount than those amounts.]
SECTION 5. Section 42.2515, Education Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) Not later than December 1 of each year, the
commissioner of education shall submit to the comptroller an
estimate of the total amount of additional state aid to which a
school district is entitled under this section for the school year
beginning in that year.
SECTION 6. 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 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 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 7. 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 8. Section 403.302, Government Code, is amended by
adding Subsection (p) to read as follows:
(p) Notwithstanding Subsection (d)(9), if the estimated
statewide levy loss exceeds $___ million in any year, the
comptroller shall reduce the amount of the deduction under
Subsection (d)(9) from the market value of the taxable property in
each school district for that year based on the proportion that the
amount of the deduction under that subsection for each school
district bears to the estimated statewide levy loss so that the
estimated statewide levy loss does not exceed $___ million in that
year. For purposes of this subsection, "estimated statewide levy
loss" means the amount computed by:
(1) multiplying the amount deducted under Subsection
(d)(9) for each school district in this state for that year by the
quotient of the adopted tax rate of the district for that year
divided by 100;
(2) adding the amounts computed under Subdivision (1)
for all of the school districts in this state; and
(3) adding the amounts estimated by the commissioner
of education and submitted to the comptroller under Section
42.2515(a-1), Education Code, for all of the school districts in
this state for that year to the amount computed under Subdivision
(2).
SECTION 9. Chapter 313, Tax Code, as amended by this Act,
applies only to an agreement entered into under that chapter on or
after the effective date of this Act. An agreement entered into
under that chapter before the effective date of this Act is governed
by the law in effect on the date the agreement was entered into, and
the former law is continued in effect for that purpose.
SECTION 10. 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.
CATEGORY TAXABLE VALUE OF PROPERTY
I $10 billion or more
II $1 billion or more but less than $10 billion
III $500 million or more but less than $1 billion
IV $100 million or more but less than $500 million
V less than $100 million
CATEGORY BASE [MINIMUM] AMOUNT OF LIMITATION
I $100 million
II $80 million
III $60 million
IV $40 million
V $20 million
CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY
I $200 million or more
II $90 million or more but less than $200 million
III $1 million or more but less than $90 million
IV $100,000 or more but less than $1 million
V less than $100,000
CATEGORY BASE [MINIMUM] AMOUNT OF LIMITATION
I $30 million
II $20 million
III $10 million
IV $5 million
V $1 million