85R9825 TJB-D
By: Phelan H.B. No. 3230
A BILL TO BE ENTITLED
AN ACT
relating to the authority of a property owner to contest the unequal
appraisal for ad valorem tax purposes of property that is subject to
an agreement to provide certain relief from ad valorem taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 312.205(a), Tax Code, is amended to read
as follows:
(a) An agreement made under Section 312.204 or 312.211 must:
(1) list the kind, number, and location of all
proposed improvements of the property;
(2) provide access to and authorize inspection of the
property by municipal employees to ensure that the improvements or
repairs are made according to the specifications and conditions of
the agreement;
(3) limit the uses of the property consistent with the
general purpose of encouraging development or redevelopment of the
zone during the period that property tax exemptions are in effect;
(4) provide for recapturing property tax revenue lost
as a result of the agreement if the owner of the property fails to
make the improvements or repairs as provided by the agreement;
(5) contain each term agreed to by the owner of the
property;
(6) require the owner of the property to certify
annually to the governing body of each taxing unit that the owner is
in compliance with each applicable term of the agreement; [and]
(7) provide that the governing body of the
municipality may cancel or modify the agreement if the property
owner fails to comply with the agreement; and
(8) include either:
(A) a waiver by the property owner of the right to
protest before an appraisal review board and the right to contest in
any court the unequal appraisal of property subject to the
agreement for a tax year in which a portion of the property is
exempt from taxation under the agreement; or
(B) provisions for the recapture of all or a
portion of the property tax revenue lost as a result of the
agreement if the appraised value of the property subject to the
agreement does not attain a value specified in the agreement for a
year covered by the agreement and payment of a penalty or interest,
or both, on that recaptured property tax revenue.
SECTION 2. Section 313.027(f), Tax Code, is amended to read
as follows:
(f) In addition, the agreement:
(1) must incorporate each relevant provision of this
subchapter and, to the extent necessary, include provisions for the
protection of future school district revenues through the
adjustment of the minimum valuations, the payment of revenue
offsets, and other mechanisms agreed to by the property owner and
the school district;
(2) may provide that the property owner will protect
the school district in the event the district incurs extraordinary
education-related expenses related to the project that are not
directly funded in state aid formulas, including expenses for the
purchase of portable classrooms and the hiring of additional
personnel to accommodate a temporary increase in student enrollment
attributable to the project;
(3) must require the property owner to maintain a
viable presence in the school district for at least five years after
the date the limitation on appraised value of the owner's property
expires;
(4) must provide for the termination of the agreement,
the recapture of ad valorem tax revenue lost as a result of the
agreement if the owner of the property fails to comply with the
terms of the agreement, and payment of a penalty or interest, or
both, on that recaptured ad valorem tax revenue;
(5) may specify any conditions the occurrence of which
will require the district and the property owner to renegotiate all
or any part of the agreement;
(6) must specify the ad valorem tax years covered by
the agreement; [and]
(7) must be in a form approved by the comptroller; and
(8) must include either:
(A) a waiver by the property owner of the right to
protest before an appraisal review board and the right to contest in
any court the unequal appraisal of property subject to the
agreement for a tax year in which a portion of the property is
exempt from taxation under the agreement; or
(B) provisions for the recapture of all or a
portion of the property tax revenue lost as a result of the
agreement if the appraised value of the property subject to the
agreement does not attain a value specified in the agreement for a
year covered by the agreement and payment of a penalty or interest,
or both, on that recaptured property tax revenue.
SECTION 3. The changes in law made by this Act apply only to
an agreement entered into by a taxing unit under Chapter 312 or 313,
Tax Code, on or after the effective date of this Act.
SECTION 4. This Act takes effect September 1, 2017.