Texas Senate Bill SB627

Texas 2011 - 82nd Regular

• Introduced: 2/11/11
• Out of Senate Committee: 4/21/11
• Refer: 2/17/11
• Voted on by Senate: 4/27/11
• Out of House Committee: 5/19/11
• Report Pass: 4/21/11
• Voted on by House: 5/23/11
• Engrossed: 4/27/11
• Governor Action: 6/17/11
• Refer: 4/29/11
• Refer: 5/5/11
• Report Pass: 5/19/11
• Enrolled: 5/23/11
• Passed: 6/17/11

Caption

Relating to the participation by certain taxing units in tax increment financing and the payment of tax increments into the tax increment fund for a reinvestment zone.

Impact

The impact of SB627 on state laws is significant as it brings more structured guidelines to how taxing units interact with municipalities in the context of TIF. By stipulating payment timelines, the bill attempts to mitigate delays that could hinder development projects reliant on TIF funding. The adjustments may lead to enhanced cooperation between local taxing entities and their municipalities, potentially fostering an environment that is more conducive to development and urban revitalization efforts across the state.

Summary

SB627 aims to amend existing regulations regarding tax increment financing (TIF) in Texas. The bill specifies the responsibilities of certain taxing units, particularly in relation to the payment of tax increments into the TIF fund for designated reinvestment zones. One major change introduced by the bill is that it requires taxing units to make payments within a defined timeframe after receiving an invoice from the municipality or county that created the reinvestment zone. This aims to streamline the process and ensure timely funding for development projects designed to stimulate economic growth within these zones.

Contention

Notably, there are points of contention surrounding SB627, with some stakeholders expressing concerns that the new payment requirements could impose additional burdens on smaller taxing units. Critics argue that since these units may have less fiscal flexibility, the imposition of strict timelines could result in financial strain, especially during periods of economic downturn. Furthermore, there may be apprehensions about whether the bill adequately addresses the needs and concerns of all affected parties, including those that may lack the resources to comply with the new demands.