87R9316 SMH-D
By: Hall S.B. No. 1207
A BILL TO BE ENTITLED
AN ACT
relating to the requirements for eligibility for a limitation on
the appraised value of property for school district maintenance and
operations ad valorem tax purposes under the Texas Economic
Development Act and the imposition of a penalty for failure to meet
certain eligibility requirements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 313.026(c), Tax Code, is amended to read
as follows:
(c) The comptroller may not issue a certificate for a
limitation on appraised value under this chapter for property
described in an application unless the comptroller determines that:
(1) the project proposed by the applicant is
reasonably likely to generate, before the third [25th] anniversary
of the beginning of the limitation period, tax revenue, including
state tax revenue, school district maintenance and operations ad
valorem tax revenue attributable to the project, and any other tax
revenue attributable to the effect of the project on the economy of
the state, in an amount sufficient to offset the school district
maintenance and operations ad valorem tax revenue lost as a result
of the agreement; and
(2) the limitation on appraised value is a determining
factor in the applicant's decision to invest capital and construct
the project in this state.
SECTION 2. Subchapter B, Chapter 313, Tax Code, is amended
by adding Section 313.0274 to read as follows:
Sec. 313.0274. RECAPTURE OF AD VALOREM TAX REVENUE LOST IF
TAX REVENUE GENERATED DOES NOT OFFSET TAX REVENUE LOST. (a)
Notwithstanding any other provision of this chapter to the
contrary, the audit submitted under Section 313.034 by a recipient
of a limitation on appraised value under this chapter must show that
the tax revenue described by Section 313.034(1) is sufficient to
offset the tax revenue described by Section 313.034(2).
(b) If in any tax year the audit submitted by a recipient of
a limitation on appraised value under this chapter fails to comply
with Subsection (a), the recipient is liable to this state for a
penalty equal to the amount computed by subtracting from the market
value of the property for that tax year the value of the property as
limited by the agreement and multiplying the difference by the
maintenance and operations tax rate of the school district for that
tax year.
(c) A penalty imposed under Subsection (b) becomes
delinquent if not paid on or before February 1 of the following tax
year. Section 33.01 applies to the delinquent penalty in the
manner that section applies to delinquent taxes.
(d) In the event of a casualty loss that prevents a person
from complying with Subsection (a), the person may request and the
comptroller may grant a waiver of the penalty imposed under
Subsection (b).
SECTION 3. The heading to Section 313.0275, Tax Code, is
amended to read as follows:
Sec. 313.0275. RECAPTURE OF AD VALOREM TAX REVENUE LOST IF
PROPERTY OWNER FAILS TO MAKE MINIMUM AMOUNT OF QUALIFIED
INVESTMENT.
SECTION 4. Subchapter B, Chapter 313, Tax Code, is amended
by adding Section 313.034 to read as follows:
Sec. 313.034. AUDIT SHOWING TAX REVENUE GENERATED AND LOST.
After each ad valorem tax year covered by the agreement beginning
with the third ad valorem tax year, each recipient of a limitation
on appraised value under this chapter shall submit to the
comptroller an audit prepared by an independent auditor showing:
(1) the tax revenue generated by the project,
including state tax revenue, school district maintenance and
operations ad valorem tax revenue attributable to the project, and
any other tax revenue attributable to the effect of the project on
the economy; and
(2) the school district maintenance and operations ad
valorem tax revenue lost as a result of the agreement.
SECTION 5. Section 313.025(f-1), Tax Code, is repealed.
SECTION 6. The change in law made by this Act applies only
to an agreement entered into under Chapter 313, Tax Code, pursuant
to an application filed under that chapter on or after the effective
date of this Act. An agreement entered into under that chapter
pursuant to an application filed before the effective date of this
Act is governed by the law in effect on the date the application was
filed, and the former law is continued in effect for that purpose.
SECTION 7. 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.