87R11270 LHC-D
By: Cason H.B. No. 2971
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repealed: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 48.254, Education Code,
is amended to read as follows:
Sec. 48.254. ADDITIONAL STATE AID FOR AD VALOREM TAX
CREDITS UNDER FORMER TEXAS ECONOMIC DEVELOPMENT ACT.
SECTION 3. Section 48.2551(a), Education Code, is amended
to read as follows:
(a) In this section:
(1) "DPV" has the meaning assigned by Section 48.256;
(2) "E" is the expiration of the exclusion of
appraised property value for the preceding tax year that is
recognized as taxable property value for the current tax year,
which is the sum of the following:
(A) property value that is no longer subject to a
limitation on appraised value under former Chapter 313, Tax Code;
and
(B) property value under Section 311.013(n), Tax
Code, that is no longer excluded from the calculation of "DPV" from
the preceding year because of refinancing or renewal after
September 1, 2019;
(3) "MCR" is the district's maximum compressed rate,
which is the tax rate for the current tax year per $100 of valuation
of taxable property at which the district must levy a maintenance
and operations tax to receive the full amount of the tier one
allotment to which the district is entitled under this chapter;
(4) "PYDPV" is the district's value of "DPV" for the
preceding tax year; and
(5) "PYMCR" is the district's value of "MCR" for the
preceding tax year.
SECTION 4. Sections 48.256(d) and (e), Education Code, are
amended to read as follows:
(d) This subsection applies to a school district in which
the board of trustees entered into a written agreement with a
property owner under former Section 313.027, Tax Code, for the
implementation of a limitation on appraised value under former
Subchapter B or C, Chapter 313, Tax Code. For purposes of
determining "DPV" under Subsection (a) for a school district to
which this subsection applies, the commissioner shall exclude a
portion of the market value of property not otherwise fully taxable
by the district under Subchapter B or C, Chapter 313, Tax Code,
before the repeal [expiration] of that [the] subchapter. The
comptroller shall provide information to the agency necessary for
this subsection. A revenue protection payment required as part of
an agreement for a limitation on appraised value shall be based on
the district's taxable value of property for the preceding tax
year.
(e) Subsection (d) 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 5. 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 6. 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 7. 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 8. 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 9. 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 10. 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 11. 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 2017 North
American Industry Classification System [has the meaning assigned
by Section 313.024(e)].
SECTION 12. 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 13. 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, 2021.