| 1 | 1 | | By: Davis S.B. No. 627 |
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| 2 | 2 | | (Veasey) |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the participation by certain taxing units in tax |
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| 8 | 8 | | increment financing and the payment of tax increments into the tax |
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| 9 | 9 | | increment fund for a reinvestment zone. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 311.013, Tax Code, is amended by |
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| 12 | 12 | | amending Subsection (c) and adding Subsections (c-1), (f-1), and |
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| 13 | 13 | | (f-2) to read as follows: |
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| 14 | 14 | | (c) Notwithstanding any termination of the reinvestment |
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| 15 | 15 | | zone under Section 311.017(a) and unless otherwise specified by an |
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| 16 | 16 | | agreement between the taxing unit and the municipality or county |
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| 17 | 17 | | that created the zone, a taxing unit shall make a payment required |
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| 18 | 18 | | by Subsection (b) not later than the 90th day after the later of: |
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| 19 | 19 | | (1) the delinquency date for the unit's property |
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| 20 | 20 | | taxes; or |
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| 21 | 21 | | (2) the date the municipality or county that created |
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| 22 | 22 | | the zone submits to the taxing unit an invoice specifying the tax |
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| 23 | 23 | | increment produced by the taxing unit and the amount the taxing unit |
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| 24 | 24 | | is required to pay into the tax increment fund for the zone. |
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| 25 | 25 | | (c-1) A delinquent payment incurs a penalty of five percent |
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| 26 | 26 | | of the amount delinquent and accrues interest at an annual rate of |
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| 27 | 27 | | 10 percent. |
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| 28 | 28 | | (f-1) This subsection does not apply to a hospital district |
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| 29 | 29 | | to which Section 281.095, Health and Safety Code, applies. |
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| 30 | 30 | | Notwithstanding Subsection (f), the commissioners court of a county |
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| 31 | 31 | | that enters into an agreement with the governing body of a |
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| 32 | 32 | | municipality under Subsection (f) may enter into an agreement with |
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| 33 | 33 | | the governing body of the municipality under that subsection on |
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| 34 | 34 | | behalf of a taxing unit other than the county if by statute the ad |
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| 35 | 35 | | valorem tax rate of the other taxing unit is approved by the |
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| 36 | 36 | | commissioners court or the commissioners court is expressly |
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| 37 | 37 | | required by statute to levy the ad valorem taxes of the other taxing |
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| 38 | 38 | | unit. The agreement entered into on behalf of the other taxing unit |
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| 39 | 39 | | is not required to contain the same conditions as the agreement |
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| 40 | 40 | | entered into on behalf of the county. This subsection does not |
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| 41 | 41 | | authorize the commissioners court of a county to enter into an |
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| 42 | 42 | | agreement on behalf of another taxing unit solely because the |
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| 43 | 43 | | county tax assessor-collector is required by law to assess or |
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| 44 | 44 | | collect the taxing unit's ad valorem taxes. |
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| 45 | 45 | | (f-2) This subsection does not apply to a hospital district |
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| 46 | 46 | | to which Section 281.095, Health and Safety Code, applies. |
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| 47 | 47 | | Notwithstanding Subsection (f), the commissioners court of a county |
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| 48 | 48 | | that creates a zone may provide by order for the payment into the |
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| 49 | 49 | | tax increment fund for the zone of a portion of the tax increment |
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| 50 | 50 | | produced by a taxing unit other than the county if by statute the ad |
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| 51 | 51 | | valorem tax rate of the other taxing unit is approved by the |
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| 52 | 52 | | commissioners court or the commissioners court is expressly |
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| 53 | 53 | | required by statute to levy the ad valorem taxes of the other taxing |
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| 54 | 54 | | unit. The order may include conditions for payment of that tax |
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| 55 | 55 | | increment into the fund that are different from the conditions |
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| 56 | 56 | | applicable to the county's obligation to pay into the fund the tax |
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| 57 | 57 | | increment produced by the county. This subsection does not |
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| 58 | 58 | | authorize the commissioners court of a county to provide for the |
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| 59 | 59 | | payment into the fund of a portion of the tax increment produced by |
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| 60 | 60 | | another taxing unit solely because the county tax |
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| 61 | 61 | | assessor-collector is required by law to assess or collect the |
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| 62 | 62 | | taxing unit's ad valorem taxes. |
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| 63 | 63 | | SECTION 2. This Act applies only to a taxing unit's tax |
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| 64 | 64 | | increment for a period occurring on or after the effective date of |
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| 65 | 65 | | this Act. A taxing unit's tax increment for a period occurring |
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| 66 | 66 | | before the effective date of this Act is governed by the law in |
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| 67 | 67 | | effect for that period, and the former law is continued in effect |
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| 68 | 68 | | for that purpose. |
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| 69 | 69 | | SECTION 3. This Act takes effect immediately if it receives |
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| 70 | 70 | | a vote of two-thirds of all the members elected to each house, as |
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| 71 | 71 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 72 | 72 | | Act does not receive the vote necessary for immediate effect, this |
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| 73 | 73 | | Act takes effect September 1, 2011. |
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