88R23990 TJB-F
By: Landgraf, Morales of Maverick H.B. No. 4429
A BILL TO BE ENTITLED
AN ACT
relating to the duty of a school district to enter into an ad
valorem tax abatement agreement under the Property Redevelopment
and Tax Abatement Act for certain property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 312.002(f) and (g), Tax Code, are
amended to read as follows:
(f) Except as provided by Subchapter D, on [On] or after
September 1, 2001, a school district may not enter into a tax
abatement agreement under this chapter.
(g) "Taxing unit" has the meaning assigned by Section 1.04,
except that for a tax abatement agreement executed on or after
September 1, 2001, other than an agreement under Subchapter D, the
term does not include a school district that is subject to Chapter
48, Education Code, and that is organized primarily to provide
general elementary and secondary public education.
SECTION 2. Section 312.0025(a), Tax Code, is amended to
read as follows:
(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 an exemption from taxation
under Subchapter D of this chapter or a limitation on appraised
value under Subchapter B or C, Chapter 313, as applicable, 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
Subchapter D to read as follows:
SUBCHAPTER D. TAX ABATEMENT IN SCHOOL DISTRICT REINVESTMENT ZONE
Sec. 312.501. DEFINITIONS. In this subchapter:
(1) "Appraised value" has the meaning assigned by
Section 1.04.
(2) "Electric generating facility" means a facility
that:
(A) is a natural gas-fired electric generating
facility that provides dispatchable electric power for the ERCOT
power grid and for which a permit is required by the Texas
Commission on Environmental Quality under the prevention of
significant deterioration air permit program adopted under Chapter
382, Health and Safety Code, including a facility that captures,
uses, reuses, or stores carbon dioxide emissions for enhanced oil
recovery, sequestration, or other commercial uses; and
(B) is located in a reinvestment zone designated
under this chapter.
(3) "Qualified property" means the following property
that is part of an electric generating facility and has an
aggregated appraised value of $1 billion on January 1 of the first
year following the year in which the facility first furnishes
electricity for the power grid:
(A) a building or other improvement constructed
on or after January 1, 2024; and
(B) tangible personal property first placed in
service in the new building or other improvement described by
Paragraph (A) or on the land on which the new building or other
improvement is located.
Sec. 312.502. APPLICATION. The owner of a proposed
electric generating facility may apply to the governing body of the
school district in which the facility is proposed to be located to
exempt from taxation for school district maintenance and operations
tax purposes the portion of the appraised value of qualified
property proposed to be located at the facility in excess of $30
million.
Sec. 312.503. ACTION ON APPLICATION. (a) The governing
body of a school district shall approve an application submitted
under Section 312.502 unless the governing body determines that the
proposed electric generating facility subject to the application is
not an electric generating facility as defined by Section 312.501.
(b) The governing body of a school district must approve or
deny an application not later than the 60th day after the date the
applicant submits the application.
Sec. 312.504. AGREEMENT. (a) A school district that
approves an application submitted under Section 312.502 shall enter
into a written agreement with the owner of the proposed electric
generating facility subject to the application not later than the
90th day after the date the applicant submits the application.
(b) An agreement entered into under this section must
provide that the owner of the electric generating facility is
entitled to an exemption from taxation for school district
maintenance and operations tax purposes of the portion of the
appraised value of qualified property located at the facility in
excess of $30 million for a period of 10 years beginning on the
first January 1 after 2027 that the facility furnishes electricity
for the power grid.
SECTION 4. Section 403.302(d), 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.