| 1 | 1 | | 85R5532 SMT-F |
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| 2 | 2 | | By: Gutierrez H.B. No. 1626 |
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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 authority of a taxing unit other than a school |
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| 8 | 8 | | district to enter into a tax abatement agreement with an owner of |
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| 9 | 9 | | real property in a tax increment financing 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 311.0125, Tax Code, is amended by |
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| 12 | 12 | | amending Subsection (b) and adding Subsection (b-1) to read as |
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| 13 | 13 | | follows: |
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| 14 | 14 | | (b) Except as provided by Subsection (b-1), to [To] be |
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| 15 | 15 | | effective, an agreement to abate taxes on real property in a |
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| 16 | 16 | | reinvestment zone must be approved by: |
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| 17 | 17 | | (1) the board of directors of the reinvestment zone; |
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| 18 | 18 | | and |
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| 19 | 19 | | (2) the governing body of each taxing unit that |
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| 20 | 20 | | imposes taxes on real property in the reinvestment zone and |
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| 21 | 21 | | deposits or agrees to deposit any of its tax increment into the tax |
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| 22 | 22 | | increment fund for the zone. |
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| 23 | 23 | | (b-1) Subsection (b) does not apply to an agreement to abate |
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| 24 | 24 | | taxes on real property in a reinvestment zone that is entered into |
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| 25 | 25 | | by a taxing unit that does not deposit and has not agreed to deposit |
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| 26 | 26 | | any of its tax increment into the tax increment fund for the zone. |
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| 27 | 27 | | SECTION 2. The change in law made by this Act applies only |
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| 28 | 28 | | to a tax abatement agreement entered into on or after the effective |
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| 29 | 29 | | date of this Act. A tax abatement agreement entered into before the |
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| 30 | 30 | | effective date of this Act is governed by the law in effect on the |
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| 31 | 31 | | date the agreement was entered into, and the former law is continued |
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| 32 | 32 | | in effect for that purpose. |
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| 33 | 33 | | SECTION 3. This Act takes effect September 1, 2017. |
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