Texas 2023 - 88th Regular

Texas House Bill HB4429 Compare Versions

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1	1	88R23990 TJB-F
2	2	By: Landgraf, Morales of Maverick H.B. No. 4429
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the duty of a school district to enter into an ad
8	8	valorem tax abatement agreement under the Property Redevelopment
9	9	and Tax Abatement Act for certain property.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Sections 312.002(f) and (g), Tax Code, are
12	12	amended to read as follows:
13	13	(f) Except as provided by Subchapter D, on [On] or after
14	14	September 1, 2001, a school district may not enter into a tax
15	15	abatement agreement under this chapter.
16	16	(g) "Taxing unit" has the meaning assigned by Section 1.04,
17	17	except that for a tax abatement agreement executed on or after
18	18	September 1, 2001, other than an agreement under Subchapter D, the
19	19	term does not include a school district that is subject to Chapter
20	20	48, Education Code, and that is organized primarily to provide
21	21	general elementary and secondary public education.
22	22	SECTION 2. Section 312.0025(a), Tax Code, is amended to
23	23	read as follows:
24	24	(a) Notwithstanding any other provision of this chapter to
25	25	the contrary, the governing body of a school district, in the manner
26	26	required for official action and for purposes of Subchapter D of
27	27	this chapter or Subchapter B or C, Chapter 313, may designate an
28	28	area entirely within the territory of the school district as a
29	29	reinvestment zone if the governing body finds that, as a result of
30	30	the designation and the granting of an exemption from taxation
31	31	under Subchapter D of this chapter or a limitation on appraised
32	32	value under Subchapter B or C, Chapter 313, as applicable, for
33	33	property located in the reinvestment zone, the designation is
34	34	reasonably likely to:
35	35	(1) contribute to the expansion of primary employment
36	36	in the reinvestment zone; or
37	37	(2) attract major investment in the reinvestment zone
38	38	that would:
39	39	(A) be a benefit to property in the reinvestment
40	40	zone and to the school district; and
41	41	(B) contribute to the economic development of the
42	42	region of this state in which the school district is located.
43	43	SECTION 3. Chapter 312, Tax Code, is amended by adding
44	44	Subchapter D to read as follows:
45	45	SUBCHAPTER D. TAX ABATEMENT IN SCHOOL DISTRICT REINVESTMENT ZONE
46	46	Sec. 312.501. DEFINITIONS. In this subchapter:
47	47	(1) "Appraised value" has the meaning assigned by
48	48	Section 1.04.
49	49	(2) "Electric generating facility" means a facility
50	50	that:
51	51	(A) is a natural gas-fired electric generating
52	52	facility that provides dispatchable electric power for the ERCOT
53	53	power grid and for which a permit is required by the Texas
54	54	Commission on Environmental Quality under the prevention of
55	55	significant deterioration air permit program adopted under Chapter
56	56	382, Health and Safety Code, including a facility that captures,
57	57	uses, reuses, or stores carbon dioxide emissions for enhanced oil
58	58	recovery, sequestration, or other commercial uses; and
59	59	(B) is located in a reinvestment zone designated
60	60	under this chapter.
61	61	(3) "Qualified property" means the following property
62	62	that is part of an electric generating facility and has an
63	63	aggregated appraised value of $1 billion on January 1 of the first
64	64	year following the year in which the facility first furnishes
65	65	electricity for the power grid:
66	66	(A) a building or other improvement constructed
67	67	on or after January 1, 2024; and
68	68	(B) tangible personal property first placed in
69	69	service in the new building or other improvement described by
70	70	Paragraph (A) or on the land on which the new building or other
71	71	improvement is located.
72	72	Sec. 312.502. APPLICATION. The owner of a proposed
73	73	electric generating facility may apply to the governing body of the
74	74	school district in which the facility is proposed to be located to
75	75	exempt from taxation for school district maintenance and operations
76	76	tax purposes the portion of the appraised value of qualified
77	77	property proposed to be located at the facility in excess of $30
78	78	million.
79	79	Sec. 312.503. ACTION ON APPLICATION. (a) The governing
80	80	body of a school district shall approve an application submitted
81	81	under Section 312.502 unless the governing body determines that the
82	82	proposed electric generating facility subject to the application is
83	83	not an electric generating facility as defined by Section 312.501.
84	84	(b) The governing body of a school district must approve or
85	85	deny an application not later than the 60th day after the date the
86	86	applicant submits the application.
87	87	Sec. 312.504. AGREEMENT. (a) A school district that
88	88	approves an application submitted under Section 312.502 shall enter
89	89	into a written agreement with the owner of the proposed electric
90	90	generating facility subject to the application not later than the
91	91	90th day after the date the applicant submits the application.
92	92	(b) An agreement entered into under this section must
93	93	provide that the owner of the electric generating facility is
94	94	entitled to an exemption from taxation for school district
95	95	maintenance and operations tax purposes of the portion of the
96	96	appraised value of qualified property located at the facility in
97	97	excess of $30 million for a period of 10 years beginning on the
98	98	first January 1 after 2027 that the facility furnishes electricity
99	99	for the power grid.
100	100	SECTION 4. Section 403.302(d), Government Code, is amended
101	101	to read as follows:
102	102	(d) For the purposes of this section, "taxable value" means
103	103	the market value of all taxable property less:
104	104	(1) the total dollar amount of any residence homestead
105	105	exemptions lawfully granted under Section 11.13(b) or (c), Tax
106	106	Code, in the year that is the subject of the study for each school
107	107	district;
108	108	(2) one-half of the total dollar amount of any
109	109	residence homestead exemptions granted under Section 11.13(n), Tax
110	110	Code, in the year that is the subject of the study for each school
111	111	district;
112	112	(3) the total dollar amount of any exemptions granted
113	113	before May 31, 1993, or after June 1, 2023, within a reinvestment
114	114	zone under agreements authorized by Chapter 312, Tax Code;
115	115	(4) subject to Subsection (e), the total dollar amount
116	116	of any captured appraised value of property that:
117	117	(A) is within a reinvestment zone created on or
118	118	before May 31, 1999, or is proposed to be included within the
119	119	boundaries of a reinvestment zone as the boundaries of the zone and
120	120	the proposed portion of tax increment paid into the tax increment
121	121	fund by a school district are described in a written notification
122	122	provided by the municipality or the board of directors of the zone
123	123	to the governing bodies of the other taxing units in the manner
124	124	provided by former Section 311.003(e), Tax Code, before May 31,
125	125	1999, and within the boundaries of the zone as those boundaries
126	126	existed on September 1, 1999, including subsequent improvements to
127	127	the property regardless of when made;
128	128	(B) generates taxes paid into a tax increment
129	129	fund created under Chapter 311, Tax Code, under a reinvestment zone
130	130	financing plan approved under Section 311.011(d), Tax Code, on or
131	131	before September 1, 1999; and
132	132	(C) is eligible for tax increment financing under
133	133	Chapter 311, Tax Code;
134	134	(5) the total dollar amount of any captured appraised
135	135	value of property that:
136	136	(A) is within a reinvestment zone:
137	137	(i) created on or before December 31, 2008,
138	138	by a municipality with a population of less than 18,000; and
139	139	(ii) the project plan for which includes
140	140	the alteration, remodeling, repair, or reconstruction of a
141	141	structure that is included on the National Register of Historic
142	142	Places and requires that a portion of the tax increment of the zone
143	143	be used for the improvement or construction of related facilities
144	144	or for affordable housing;
145	145	(B) generates school district taxes that are paid
146	146	into a tax increment fund created under Chapter 311, Tax Code; and
147	147	(C) is eligible for tax increment financing under
148	148	Chapter 311, Tax Code;
149	149	(6) the total dollar amount of any exemptions granted
150	150	under Section 11.251 or 11.253, Tax Code;
151	151	(7) the difference between the comptroller's estimate
152	152	of the market value and the productivity value of land that
153	153	qualifies for appraisal on the basis of its productive capacity,
154	154	except that the productivity value estimated by the comptroller may
155	155	not exceed the fair market value of the land;
156	156	(8) the portion of the appraised value of residence
157	157	homesteads of individuals who receive a tax limitation under
158	158	Section 11.26, Tax Code, on which school district taxes are not
159	159	imposed in the year that is the subject of the study, calculated as
160	160	if the residence homesteads were appraised at the full value
161	161	required by law;
162	162	(9) a portion of the market value of property not
163	163	otherwise fully taxable by the district at market value because of
164	164	action required by statute or the constitution of this state, other
165	165	than Section 11.311, Tax Code, that, if the tax rate adopted by the
166	166	district is applied to it, produces an amount equal to the
167	167	difference between the tax that the district would have imposed on
168	168	the property if the property were fully taxable at market value and
169	169	the tax that the district is actually authorized to impose on the
170	170	property, if this subsection does not otherwise require that
171	171	portion to be deducted;
172	172	(10) the market value of all tangible personal
173	173	property, other than manufactured homes, owned by a family or
174	174	individual and not held or used for the production of income;
175	175	(11) the appraised value of property the collection of
176	176	delinquent taxes on which is deferred under Section 33.06, Tax
177	177	Code;
178	178	(12) the portion of the appraised value of property
179	179	the collection of delinquent taxes on which is deferred under
180	180	Section 33.065, Tax Code;
181	181	(13) the amount by which the market value of a
182	182	residence homestead to which Section 23.23, Tax Code, applies
183	183	exceeds the appraised value of that property as calculated under
184	184	that section; and
185	185	(14) the total dollar amount of any exemptions granted
186	186	under Section 11.35, Tax Code.
187	187	SECTION 5. This Act takes effect immediately if it receives
188	188	a vote of two-thirds of all the members elected to each house, as
189	189	provided by Section 39, Article III, Texas Constitution. If this
190	190	Act does not receive the vote necessary for immediate effect, this
191	191	Act takes effect September 1, 2023.