Texas 2021 - 87th Regular

Texas Senate Bill SB1207 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R9316 SMH-D
2	2	By: Hall S.B. No. 1207
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the requirements for eligibility for a limitation on
8	8	the appraised value of property for school district maintenance and
9	9	operations ad valorem tax purposes under the Texas Economic
10	10	Development Act and the imposition of a penalty for failure to meet
11	11	certain eligibility requirements.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 313.026(c), Tax Code, is amended to read
14	14	as follows:
15	15	(c) The comptroller may not issue a certificate for a
16	16	limitation on appraised value under this chapter for property
17	17	described in an application unless the comptroller determines that:
18	18	(1) the project proposed by the applicant is
19	19	reasonably likely to generate, before the third [25th] anniversary
20	20	of the beginning of the limitation period, tax revenue, including
21	21	state tax revenue, school district maintenance and operations ad
22	22	valorem tax revenue attributable to the project, and any other tax
23	23	revenue attributable to the effect of the project on the economy of
24	24	the state, in an amount sufficient to offset the school district
25	25	maintenance and operations ad valorem tax revenue lost as a result
26	26	of the agreement; and
27	27	(2) the limitation on appraised value is a determining
28	28	factor in the applicant's decision to invest capital and construct
29	29	the project in this state.
30	30	SECTION 2. Subchapter B, Chapter 313, Tax Code, is amended
31	31	by adding Section 313.0274 to read as follows:
32	32	Sec. 313.0274. RECAPTURE OF AD VALOREM TAX REVENUE LOST IF
33	33	TAX REVENUE GENERATED DOES NOT OFFSET TAX REVENUE LOST. (a)
34	34	Notwithstanding any other provision of this chapter to the
35	35	contrary, the audit submitted under Section 313.034 by a recipient
36	36	of a limitation on appraised value under this chapter must show that
37	37	the tax revenue described by Section 313.034(1) is sufficient to
38	38	offset the tax revenue described by Section 313.034(2).
39	39	(b) If in any tax year the audit submitted by a recipient of
40	40	a limitation on appraised value under this chapter fails to comply
41	41	with Subsection (a), the recipient is liable to this state for a
42	42	penalty equal to the amount computed by subtracting from the market
43	43	value of the property for that tax year the value of the property as
44	44	limited by the agreement and multiplying the difference by the
45	45	maintenance and operations tax rate of the school district for that
46	46	tax year.
47	47	(c) A penalty imposed under Subsection (b) becomes
48	48	delinquent if not paid on or before February 1 of the following tax
49	49	year. Section 33.01 applies to the delinquent penalty in the
50	50	manner that section applies to delinquent taxes.
51	51	(d) In the event of a casualty loss that prevents a person
52	52	from complying with Subsection (a), the person may request and the
53	53	comptroller may grant a waiver of the penalty imposed under
54	54	Subsection (b).
55	55	SECTION 3. The heading to Section 313.0275, Tax Code, is
56	56	amended to read as follows:
57	57	Sec. 313.0275. RECAPTURE OF AD VALOREM TAX REVENUE LOST IF
58	58	PROPERTY OWNER FAILS TO MAKE MINIMUM AMOUNT OF QUALIFIED
59	59	INVESTMENT.
60	60	SECTION 4. Subchapter B, Chapter 313, Tax Code, is amended
61	61	by adding Section 313.034 to read as follows:
62	62	Sec. 313.034. AUDIT SHOWING TAX REVENUE GENERATED AND LOST.
63	63	After each ad valorem tax year covered by the agreement beginning
64	64	with the third ad valorem tax year, each recipient of a limitation
65	65	on appraised value under this chapter shall submit to the
66	66	comptroller an audit prepared by an independent auditor showing:
67	67	(1) the tax revenue generated by the project,
68	68	including state tax revenue, school district maintenance and
69	69	operations ad valorem tax revenue attributable to the project, and
70	70	any other tax revenue attributable to the effect of the project on
71	71	the economy; and
72	72	(2) the school district maintenance and operations ad
73	73	valorem tax revenue lost as a result of the agreement.
74	74	SECTION 5. Section 313.025(f-1), Tax Code, is repealed.
75	75	SECTION 6. The change in law made by this Act applies only
76	76	to an agreement entered into under Chapter 313, Tax Code, pursuant
77	77	to an application filed under that chapter on or after the effective
78	78	date of this Act. An agreement entered into under that chapter
79	79	pursuant to an application filed before the effective date of this
80	80	Act is governed by the law in effect on the date the application was
81	81	filed, and the former law is continued in effect for that purpose.
82	82	SECTION 7. This Act takes effect immediately if it receives
83	83	a vote of two-thirds of all the members elected to each house, as
84	84	provided by Section 39, Article III, Texas Constitution. If this
85	85	Act does not receive the vote necessary for immediate effect, this
86	86	Act takes effect September 1, 2021.