Texas 2023 - 88th Regular

Texas Senate Bill SB1096 Compare Versions

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Version 2 (New)

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1	1	88R6390 CJC-F
2	2	By: Parker S.B. No. 1096
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the treatment of certain residence homesteads for
8	8	purposes of the Tax Increment Financing Act.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 311.002(1), Tax Code, is amended to read
11	11	as follows:
12	12	(1) "Project costs" means the expenditures made or
13	13	estimated to be made and monetary obligations incurred or estimated
14	14	to be incurred by the municipality or county designating a
15	15	reinvestment zone that are listed in the project plan as costs of
16	16	public works, public improvements, programs, or other projects
17	17	benefiting the zone, plus other costs incidental to those
18	18	expenditures and obligations. "Project costs" include:
19	19	(A) capital costs, including the actual costs of
20	20	the acquisition and construction of public works, public
21	21	improvements, new buildings, structures, and fixtures; the actual
22	22	costs of the acquisition, demolition, alteration, remodeling,
23	23	repair, or reconstruction of existing buildings, structures, and
24	24	fixtures; the actual costs of the remediation of conditions that
25	25	contaminate public or private land or buildings; the actual costs
26	26	of the preservation of the facade of a public or private building;
27	27	the actual costs of the demolition of public or private buildings;
28	28	and the actual costs of the acquisition of land and equipment and
29	29	the clearing and grading of land;
30	30	(B) financing costs, including all interest paid
31	31	to holders of evidences of indebtedness or other obligations issued
32	32	to pay for project costs and any premium paid over the principal
33	33	amount of the obligations because of the redemption of the
34	34	obligations before maturity;
35	35	(C) real property assembly costs;
36	36	(D) professional service costs, including those
37	37	incurred for architectural, planning, engineering, and legal
38	38	advice and services;
39	39	(E) imputed administrative costs, including
40	40	reasonable charges for the time spent by employees of the
41	41	municipality or county in connection with the implementation of a
42	42	project plan;
43	43	(F) relocation costs;
44	44	(G) organizational costs, including the costs of
45	45	conducting environmental impact studies or other studies, the cost
46	46	of publicizing the creation of the zone, and the cost of
47	47	implementing the project plan for the zone;
48	48	(H) interest before and during construction and
49	49	for one year after completion of construction, whether or not
50	50	capitalized;
51	51	(I) the cost of operating the reinvestment zone
52	52	and project facilities;
53	53	(J) the amount of any contributions made by the
54	54	municipality or county from general revenue for the implementation
55	55	of the project plan;
56	56	(K) the costs of school buildings, other
57	57	educational buildings, other educational facilities, or other
58	58	buildings owned by or on behalf of a school district, community
59	59	college district, or other political subdivision of this state;
60	60	[and]
61	61	(L) payments made at the discretion of the
62	62	governing body of the municipality or county that the governing
63	63	body finds necessary or convenient to the creation of the zone or to
64	64	the implementation of the project plans for the zone; and
65	65	(M) payments made as part of a reinvestment zone
66	66	stability program established under Section 311.0111.
67	67	SECTION 2. Section 311.006(a), Tax Code, is amended to read
68	68	as follows:
69	69	(a) A municipality may not designate a reinvestment zone if:
70	70	(1) more than 40 [30] percent of the property in the
71	71	proposed zone[, excluding property that is publicly owned,] is used
72	72	for residential purposes, excluding property that is:
73	73	(A) publicly owned; or
74	74	(B) a residence homestead owned by a legacy
75	75	homeowner, as those terms are defined by Section 311.0111; or
76	76	(2) the total appraised value of taxable real property
77	77	in the proposed zone and in existing reinvestment zones exceeds:
78	78	(A) 25 percent of the total appraised value of
79	79	taxable real property in the municipality and in the industrial
80	80	districts created by the municipality, if the municipality has a
81	81	population of 100,000 or more; or
82	82	(B) 50 percent of the total appraised value of
83	83	taxable real property in the municipality and in the industrial
84	84	districts created by the municipality, if the municipality has a
85	85	population of less than 100,000.
86	86	SECTION 3. Chapter 311, Tax Code, is amended by adding
87	87	Section 311.0111 to read as follows:
88	88	Sec. 311.0111. REINVESTMENT ZONE STABILITY PROGRAM. (a)
89	89	In this section:
90	90	(1) "Legacy homeowner" means the owner of a residence
91	91	homestead located in a reinvestment zone who has continuously
92	92	resided in and received an exemption under Section 11.13 for the
93	93	homestead for at least seven years preceding the date the governing
94	94	body of the county or municipality designated the zone in which the
95	95	homestead is located.
96	96	(2) "Program" means a reinvestment zone stability
97	97	program established under this section.
98	98	(3) "Residence homestead" has the meaning assigned by
99	99	Section 11.13.
100	100	(b) The project plan prepared and adopted by the board of
101	101	directors of a reinvestment zone under Section 311.011 may
102	102	authorize the board of directors to establish a reinvestment zone
103	103	stability program, the purpose of which is to ensure that all
104	104	residents of the zone benefit from its designation. The governing
105	105	body of the county or municipality that designated the zone and any
106	106	affiliated community organizations may participate in the
107	107	development of the program. As part of a program established under
108	108	this section, the board may dedicate, pledge, or otherwise provide
109	109	for the use of money in the tax increment fund established for the
110	110	zone to prevent homeowner displacement by providing annual payments
111	111	on behalf of legacy homeowners to offset the increase in ad valorem
112	112	taxes imposed on the residence homesteads of those homeowners that
113	113	is attributable to the increase in property values associated with
114	114	the development or redevelopment of property in the zone.
115	115	(c) If the project plan for a reinvestment zone authorizes
116	116	annual payments on behalf of legacy homeowners, the plan must
117	117	provide that:
118	118	(1) the amount of an annual payment made under the
119	119	program to a legacy homeowner may not exceed the amount determined
120	120	for that homeowner under Subsection (d); and
121	121	(2) the period of time for which annual payments may be
122	122	made on behalf of a legacy homeowner may not exceed 10 years.
123	123	(d) The maximum amount of an annual payment that may be made
124	124	on behalf of a legacy homeowner for a tax year is equal to the
125	125	positive difference, if any, between the following amounts:
126	126	(1) the ad valorem taxes due on the homeowner's
127	127	homestead for that tax year; and
128	128	(2) the ad valorem taxes due on the homeowner's
129	129	homestead for the tax year in which the reinvestment zone in which
130	130	the homestead is located was designated.
131	131	SECTION 4. This Act takes effect September 1, 2023.