By: Landgraf H.B. No. 4429
A BILL TO BE ENTITLED
AN ACT
relating to certain school district tax abatements for power system
reliability projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 312, Tax Code is amended by amending
subsection (f) to read as follows:
(f) Except as provided by Subchapter D, [O]on or after
September 1, 2001, a school district may not enter into a tax
abatement agreement under this chapter.
SECTION 2. Section 312.0025, Tax Code, is amended to read as
follows:
Sec. 312.0025. DESIGNATION OF REINVESTMENT ZONE BY SCHOOL
DISTRICT. (a) Notwithstanding any other provision of this chapter
to the contrary, the governing body of a school district, in the
manner required for official action and for purposes of Subchapter
D of this Chapter, or Subchapter B or C, Chapter 313, may designate
an area entirely within the territory of the school district as a
reinvestment zone if the governing body finds that, as a result of
the designation and the granting of a limitation on appraised value
under Subchapter B or C, Chapter 313, for property located in the
reinvestment zone, the designation is reasonably likely to:
(1) contribute to the expansion of primary employment
in the reinvestment zone; or
(2) attract major investment in the reinvestment zone
that would:
(A) be a benefit to property in the reinvestment
zone and to the school district; and
(B) contribute to the economic development of the
region of this state in which the school district is located.
SECTION 3. Chapter 312, Tax Code, is amended by adding a new
Subchapter D to read as follows:
SUBCHAPTER D. SCHOOL DISTRICT TAX ABATEMENT FOR POWER SYSTEM
RELIABILITY PROJECTS.
Section 312.501. DEFINITIONS. In this subchapter, a "power
system reliability project" means an improvement to real property:
(1) with an appraised value of real tangible personal
property of at least $1 billion first placed in service in this
state on or after January 1, 2024, without regard to whether the
property is affixed to or incorporated into real property;
(2) used to construct and operate a natural gas
electric generation facility that provides dispatchable electric
power to the ERCOT power region, and requires a Prevention of
Significant Deterioration review by the Texas Commission on
Environmental Quality for the authorization of an air permit and
may include a plant that captures, uses, reuses, or stores carbon
dioxide emissions for enhanced oil recovery, sequestration, or
other commercial uses; and
(3) that is located in a reinvestment zone created by
the school district.
Section 312.502 ENTITLEMENT TO ABATEMENT (a) The
governing body of a school district shall execute a tax abatement
agreement with the owner of a power system reliability project to
exempt the project from school district maintenance and operation
ad valorem taxation the value of any improvements greater than $30
million in appraised value.
(b) The abatement period begins on the first date of the tax
year the project begins to achieve commercial operation.
(c) The duration of an abatement under this subchapter is 10
years.
Section 312.503. REPORTING. The chief appraiser of
each appraisal district with a power system reliability project
shall deliver to the comptroller before July 1 of the year
following the year in which the agreement was executed a copy of
each tax abatement agreement.
SECTION 4. Section 403.302, Government Code, is 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, or after June 1, 2023, 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
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;
(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;
(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; and
(14) the total dollar amount of any exemptions granted
under Section 11.35, Tax Code.
SECTION 5. 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, 2023.