Relating to the use of tax increment financing by certain municipalities.
Impact
The proposed bill aims to protect property owners' rights by preventing municipalities from imposing onerous conditions, such as waiving inherent rights or dedicating large portions of property as open space, as prerequisites for reinvestment zone designation. This change is intended to streamline the process for development while ensuring that property owners do not have to sacrifice their rights or face unreasonable demands. The bill seeks to establish clearer guidelines for managing TIF funds, ensuring that such funds are maintained separately within municipal accounts, which facilitates transparency and responsible management of public money.
Summary
House Bill 3589 relates to the use of tax increment financing (TIF) by certain municipalities in Texas. It amends Section 311.0087 of the Tax Code, introducing specific restrictions on larger municipalities that meet particular criteria regarding population and previously established reinvestment zones. The bill is designed to regulate the conditions under which municipalities can designate reinvestment zones or approve related agreements, particularly focusing on the rights of property owners and the limitations imposed by city governments. Notably, the bill mandates that if a municipality imposes a processing fee exceeding $25,000 for a petition for a reinvestment zone, it cannot require specific detrimental conditions from property owners in return for such designation or approval.
Contention
Despite passing unanimously in the House, the bill has spurred discussions about local governance and the balance of power between municipalities and property owners. Supporters argue that the legislation provides necessary safeguards for landowners, promoting local economic development without excessive governmental interference. Critics, however, may view these restrictions as limiting the ability of municipalities to manage development effectively within their jurisdictions, particularly in densely populated urban areas where planning and zoning regulations are essential for community welfare.
Voting_history
The voting history indicates full support, with 147 votes in favor and none against during the third reading in the House on May 2, 2013. This strong bipartisan support reflects a shared acknowledgment among legislators of the need to reform the conditions associated with tax increment financing and the clear expectations for municipalities in Texas.
Relating to the authority of the board of directors of a tax increment financing reinvestment zone to use money in the tax increment fund established for the zone to compensate certain homeowners for the increase in taxes associated with the zone.
Relating to the powers and duties of Port Freeport; limiting the authority of certain municipalities to regulate land use by Port Freeport; and the creation of a reinvestment zone containing property owned by Port Freeport.
Relating to the calculation of certain ad valorem tax rates of a taxing unit for a year in which a property owner provides notice that the owner intends to appeal an order of an appraisal review board determining a protest by the owner regarding the appraisal of the owner's property.
Relating to the calculation of ad valorem tax rates by certain taxing units that participate in one or more reinvestment zones for tax increment financing.
Relating to the imposition of the franchise tax and local sales and use taxes, including the authority of a county or other local governmental entity to receive local sales tax information.