85R6485 TJB-D
By: Burton S.B. No. 600
A BILL TO BE ENTITLED
AN ACT
relating to the repeal of the Texas Economic Development Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The following provisions of the Tax Code are
repealed:
(1) Section 312.0025; and
(2) Chapter 313.
SECTION 2. The heading to Section 42.2515, Education Code,
is amended to read as follows:
Sec. 42.2515. ADDITIONAL STATE AID FOR AD VALOREM TAX
CREDITS UNDER FORMER TEXAS ECONOMIC DEVELOPMENT ACT.
SECTION 3. Sections 403.302(d) and (m), Government Code,
are amended to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by former Section 311.003(e), Tax Code, before May 31,
1999, and within the boundaries of the zone as those boundaries
existed on September 1, 1999, including subsequent improvements to
the property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) the total dollar amount of any captured appraised
value of property that:
(A) is within a reinvestment zone:
(i) created on or before December 31, 2008,
by a municipality with a population of less than 18,000; and
(ii) the project plan for which includes
the alteration, remodeling, repair, or reconstruction of a
structure that is included on the National Register of Historic
Places and requires that a portion of the tax increment of the zone
be used for the improvement or construction of related facilities
or for affordable housing;
(B) generates school district taxes that are paid
into a tax increment fund created under Chapter 311, Tax Code; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(6) the total dollar amount of any exemptions granted
under Section 11.251 or 11.253, Tax Code;
(7) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(8) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26, Tax Code, on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(9) a portion of the market value of property not
otherwise fully taxable by the district at market value because of:
(A) action required by statute or the
constitution of this state, other than Section 11.311, Tax Code,
that, if the tax rate adopted by the district is applied to it,
produces an amount equal to the difference between the tax that the
district would have imposed on the property if the property were
fully taxable at market value and the tax that the district is
actually authorized to impose on the property, if this subsection
does not otherwise require that portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313, Tax Code, before the repeal [expiration] of
that [the] subchapter;
(10) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(11) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(12) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code; and
(13) the amount by which the market value of a
residence homestead to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section.
(m) Subsection (d)(9) does not apply to property that was
the subject of an application under former Subchapter B or C,
Chapter 313, Tax Code, made after May 1, 2009, that the comptroller
recommended should be disapproved.
SECTION 4. Section 2303.507, Government Code, is amended to
read as follows:
Sec. 2303.507. TAX INCREMENT FINANCING AND ABATEMENT[;
LIMITATIONS ON APPRAISED VALUE]. Designation of an area as an
enterprise zone is also designation of the area as a reinvestment
zone for:
(1) tax increment financing under Chapter 311, Tax
Code; and
(2) tax abatement under Chapter 312, Tax Code[; and
[(3) limitations on appraised value under Chapter 313,
Tax Code].
SECTION 5. Section 23.03, Tax Code, is amended to read as
follows:
Sec. 23.03. COMPILATION OF LARGE PROPERTIES AND PROPERTIES
SUBJECT TO LIMITATION ON APPRAISED VALUE. Each year the chief
appraiser shall compile and send to the Texas [Department of]
Economic Development and Tourism Office a list of properties in the
appraisal district that in that tax year:
(1) have a market value of $100 million or more; or
(2) are subject to a limitation on appraised value
under former Chapter 313.
SECTION 6. Section 26.012(6), Tax Code, is amended to read
as follows:
(6) "Current total value" means the total taxable
value of property listed on the appraisal roll for the current year,
including all appraisal roll supplements and corrections as of the
date of the calculation, less the taxable value of property
exempted for the current tax year for the first time under Section
11.31 or 11.315, except that:
(A) the current total value for a school district
excludes:
(i) the total value of homesteads that
qualify for a tax limitation as provided by Section 11.26; and
(ii) new property value of property that is
subject to an agreement entered into under former Chapter 313; and
(B) the current total value for a county,
municipality, or junior college district excludes the total value
of homesteads that qualify for a tax limitation provided by Section
11.261.
SECTION 7. Section 151.359(k), Tax Code, is amended to read
as follows:
(k) A data center is not eligible to receive an exemption
under this section if the data center is subject to an agreement
limiting the appraised value of the data center's property under
former Subchapter B or C, Chapter 313.
SECTION 8. Section 151.3595(j), Tax Code, is amended to
read as follows:
(j) A data center is not eligible to receive an exemption
under this section if the data center is subject to an agreement
limiting the appraised value of the data center's property under
former Subchapter B or C, Chapter 313.
SECTION 9. Section 171.602(f), Tax Code, is amended to read
as follows:
(f) The comptroller may not issue a credit under this
section before the later of:
(1) September 1, 2018; or
(2) the expiration of an agreement under former
Chapter 313 regarding the clean energy project for which the credit
is issued.
SECTION 10. Section 312.403(a), Tax Code, is amended to
read as follows:
(a) In this section, "nuclear electric power generation"
means activities described in category 221113 of the 2002 North
American Industry Classification System [has the meaning assigned
by Section 313.024(e)].
SECTION 11. Chapter 320, Tax Code, is amended by adding
Section 320.002 to read as follows:
Sec. 320.002. SAVING PROVISIONS AFTER REPEAL OF CHAPTER
313. (a) An agreement limiting the appraised value of property
approved under Subchapter B or C, Chapter 313, before the repeal of
that subchapter continues in effect according to that subchapter as
that subchapter existed immediately before its repeal, and that law
is continued in effect for purposes of the agreement.
(b) The repeal of Subchapter D, Chapter 313, does not affect
a property owner's entitlement to a tax credit granted under that
subchapter if the property owner qualified for the tax credit
before the repeal of that subchapter.
SECTION 12. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2017.