Texas 2023 - 88th Regular

Texas House Bill HB4433 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Anchía, Gervin-Hawkins, Jones of Dallas H.B. No. 4433
2	2	(Senate Sponsor - Parker)
3	3	(In the Senate - Received from the House May 15, 2023;
4	4	May 15, 2023, read first time and referred to Committee on Natural
5	5	Resources & Economic Development; May 22, 2023, reported
6	6	adversely, with favorable Committee Substitute by the following
7	7	vote: Yeas 5, Nays 0, 1 present not voting; May 22, 2023, sent to
8	8	printer.)
9	9	Click here to see the committee vote
10	10	COMMITTEE SUBSTITUTE FOR H.B. No. 4433 By: Zaffirini
11	11
12	12
13	13	A BILL TO BE ENTITLED
14	14	AN ACT
15	15	relating to the authority of the board of directors of a tax
16	16	increment financing reinvestment zone to use money in the tax
17	17	increment fund established for the zone to compensate certain
18	18	homeowners for the increase in taxes associated with the zone.
19	19	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
20	20	SECTION 1. Section 311.002(1), Tax Code, is amended to read
21	21	as follows:
22	22	(1) "Project costs" means the expenditures made or
23	23	estimated to be made and monetary obligations incurred or estimated
24	24	to be incurred by the municipality or county designating a
25	25	reinvestment zone that are listed in the project plan as costs of
26	26	public works, public improvements, programs, or other projects
27	27	benefiting the zone, plus other costs incidental to those
28	28	expenditures and obligations. "Project costs" include:
29	29	(A) capital costs, including the actual costs of
30	30	the acquisition and construction of public works, public
31	31	improvements, new buildings, structures, and fixtures; the actual
32	32	costs of the acquisition, demolition, alteration, remodeling,
33	33	repair, or reconstruction of existing buildings, structures, and
34	34	fixtures; the actual costs of the remediation of conditions that
35	35	contaminate public or private land or buildings; the actual costs
36	36	of the preservation of the facade of a public or private building;
37	37	the actual costs of the demolition of public or private buildings;
38	38	and the actual costs of the acquisition of land and equipment and
39	39	the clearing and grading of land;
40	40	(B) financing costs, including all interest paid
41	41	to holders of evidences of indebtedness or other obligations issued
42	42	to pay for project costs and any premium paid over the principal
43	43	amount of the obligations because of the redemption of the
44	44	obligations before maturity;
45	45	(C) real property assembly costs;
46	46	(D) professional service costs, including those
47	47	incurred for architectural, planning, engineering, and legal
48	48	advice and services;
49	49	(E) imputed administrative costs, including
50	50	reasonable charges for the time spent by employees of the
51	51	municipality or county in connection with the implementation of a
52	52	project plan;
53	53	(F) relocation costs;
54	54	(G) organizational costs, including the costs of
55	55	conducting environmental impact studies or other studies, the cost
56	56	of publicizing the creation of the zone, and the cost of
57	57	implementing the project plan for the zone;
58	58	(H) interest before and during construction and
59	59	for one year after completion of construction, whether or not
60	60	capitalized;
61	61	(I) the cost of operating the reinvestment zone
62	62	and project facilities;
63	63	(J) the amount of any contributions made by the
64	64	municipality or county from general revenue for the implementation
65	65	of the project plan;
66	66	(K) the costs of school buildings, other
67	67	educational buildings, other educational facilities, or other
68	68	buildings owned by or on behalf of a school district, community
69	69	college district, or other political subdivision of this state;
70	70	[and]
71	71	(L) payments made at the discretion of the
72	72	governing body of the municipality or county that the governing
73	73	body finds necessary or convenient to the creation of the zone or to
74	74	the implementation of the project plans for the zone; and
75	75	(M) payments made as part of a reinvestment zone
76	76	stability program established under Section 311.0111.
77	77	SECTION 2. Chapter 311, Tax Code, is amended by adding
78	78	Section 311.0111 to read as follows:
79	79	Sec. 311.0111. REINVESTMENT ZONE STABILITY PROGRAM. (a)
80	80	In this section:
81	81	(1) "Legacy homeowner" means the owner of a residence
82	82	homestead located in a reinvestment zone who has continuously
83	83	resided in and received an exemption under Section 11.13 for the
84	84	homestead for at least seven years preceding the date the governing
85	85	body of the county or municipality designated the zone in which the
86	86	homestead is located.
87	87	(2) "Program" means a reinvestment zone stability
88	88	program established under this section.
89	89	(3) "Residence homestead" has the meaning assigned by
90	90	Section 11.13.
91	91	(b) The project plan prepared and adopted by the board of
92	92	directors of a reinvestment zone under Section 311.011 may
93	93	authorize the board of directors to establish a reinvestment zone
94	94	stability program, the purpose of which is to ensure that all
95	95	residents of the zone benefit from its designation. The governing
96	96	body of the county or municipality that designated the zone and any
97	97	affiliated community organizations may participate in the
98	98	development of the program. As part of a program established under
99	99	this section, the board may dedicate, pledge, or otherwise provide
100	100	for the use of money in the tax increment fund established for the
101	101	zone to prevent homeowner displacement by providing annual payments
102	102	on behalf of legacy homeowners to offset the increase in ad valorem
103	103	taxes imposed on the residence homesteads of those homeowners that
104	104	is attributable to the increase in property values associated with
105	105	the development or redevelopment of property in the zone.
106	106	(c) If the project plan for a reinvestment zone authorizes
107	107	annual payments on behalf of legacy homeowners, the plan must
108	108	provide that:
109	109	(1) the amount of an annual payment made under the
110	110	program to a legacy homeowner may not exceed the amount determined
111	111	for that homeowner under Subsection (d);
112	112	(2) the period of time for which annual payments may be
113	113	made on behalf of a legacy homeowner may not exceed 10 years; and
114	114	(3) a notice must be provided each year to each legacy
115	115	homeowner on whose behalf an annual payment is made under the
116	116	program regarding the terms of the program and the period of time
117	117	for which payments may continue to be made on behalf of the legacy
118	118	homeowner under the program.
119	119	(d) The maximum amount of an annual payment that may be made
120	120	on behalf of a legacy homeowner for a tax year is equal to the
121	121	positive difference, if any, between the following amounts:
122	122	(1) the ad valorem taxes due on the homeowner's
123	123	homestead for that tax year; and
124	124	(2) the ad valorem taxes due on the homeowner's
125	125	homestead for the tax year in which the reinvestment zone in which
126	126	the homestead is located was designated.
127	127	SECTION 3. This Act takes effect September 1, 2023.
128	128	* * * * *