Texas 2023 - 88th Regular

Texas Senate Bill SB2153 Compare Versions

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1	1	By: Sparks S.B. No. 2153
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to certain school district tax abatements for power system
7	7	reliability projects.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Chapter 312, Tax Code is amended by amending
10	10	subsection (f) to read as follows:
11	11	(f) Except as provided by Subchapter D, [O]on or after
12	12	September 1, 2001, a school district may not enter into a tax
13	13	abatement agreement under this chapter.
14	14	SECTION 2. Section 312.0025, Tax Code, is amended to read as
15	15	follows:
16	16	Sec. 312.0025. DESIGNATION OF REINVESTMENT ZONE BY
17	17	SCHOOL DISTRICT. (a) Notwithstanding any other provision of this
18	18	chapter to the contrary, the governing body of a school district, in
19	19	the manner required for official action and for purposes of
20	20	Subchapter D of this Chapter, or Subchapter B or C, Chapter 313, may
21	21	designate an area entirely within the territory of the school
22	22	district as a reinvestment zone if the governing body finds that, as
23	23	a result of the designation and the granting of a limitation on
24	24	appraised value under Subchapter B or C, Chapter 313, for property
25	25	located in the reinvestment zone, the designation is reasonably
26	26	likely to:
27	27	(1) contribute to the expansion of primary
28	28	employment in the reinvestment zone; or
29	29	(2) attract major investment in the reinvestment
30	30	zone that would:
31	31	(A) be a benefit to property in the
32	32	reinvestment zone and to the school district; and
33	33	(B) contribute to the economic development
34	34	of the region of this state in which the school district is located.
35	35	SECTION 3. Chapter 312, Tax Code, is amended by adding a new
36	36	Subchapter D to read as follows:
37	37	SUBCHAPTER D. SCHOOL DISTRICT TAX ABATEMENT FOR POWER SYSTEM
38	38	RELIABILITY PROJECTS.
39	39	Section 312.501. DEFINITIONS. In this subchapter, a "power
40	40	system reliability project" means an improvement to real property:
41	41	(1) with an appraised value of real tangible personal
42	42	property of at least $1 billion first placed in service in this
43	43	state on or after January 1, 2024, without regard to whether the
44	44	property is affixed to or incorporated into real property;
45	45	(2) used to construct and operate a natural gas
46	46	electric generation facility that provides dispatchable electric
47	47	power to the ERCOT power region, and requires a Prevention of
48	48	Significant Deterioration review by the Texas Commission on
49	49	Environmental Quality for the authorization of an air permit and
50	50	may include a plant that captures, uses, reuses, or stores carbon
51	51	dioxide emissions for enhanced oil recovery, sequestration, or
52	52	other commercial uses; and
53	53	(3) that is located in a reinvestment zone created by
54	54	the school district.
55	55	Section 312.502 ENTITLEMENT TO ABATEMENT (a) The governing
56	56	body of a school district shall execute a tax abatement agreement
57	57	with the owner of a power system reliability project to exempt the
58	58	project from school district maintenance and operation ad valorem
59	59	taxation the value of any improvements greater than $30 million in
60	60	appraised value.
61	61	(b) The abatement period begins on the first date of the tax
62	62	year the project begins to achieve commercial operation.
63	63	(c) The duration of an abatement under this subchapter is 10
64	64	years.
65	65	Section 312.503. REPORTING. The chief appraiser of each
66	66	appraisal district with a power system reliability project shall
67	67	deliver to the comptroller before July 1 of the year following the
68	68	year in which the agreement was executed a copy of each tax
69	69	abatement agreement.
70	70	SECTION 4. Section 403.302, Government Code, is amended to
71	71	read as follows:
72	72	(d) For the purposes of this section, "taxable value" means
73	73	the market value of all taxable property less:
74	74	(1) the total dollar amount of any residence homestead
75	75	exemptions lawfully granted under Section 11.13(b) or (c), Tax
76	76	Code, in the year that is the subject of the study for each school
77	77	district;
78	78	(2) one-half of the total dollar amount of any
79	79	residence homestead exemptions granted under Section 11.13(n), Tax
80	80	Code, in the year that is the subject of the study for each school
81	81	district;
82	82	(3) the total dollar amount of any exemptions granted
83	83	before May 31, 1993, or after June 1, 2023, within a reinvestment
84	84	zone under agreements authorized by Chapter 312, Tax Code;
85	85	(4) subject to Subsection (e), the total dollar amount
86	86	of any captured appraised value of property that:
87	87	(A) is within a reinvestment zone created on or
88	88	before May 31, 1999, or is proposed to be included within the
89	89	boundaries of a reinvestment zone as the boundaries of the zone and
90	90	the proposed portion of tax increment paid into the tax increment
91	91	fund by a school district are described in a written notification
92	92	provided by the municipality or the board of directors of the zone
93	93	to the governing bodies of the other taxing units in the manner
94	94	provided by former Section 311.003(e), Tax Code, before May 31,
95	95	1999, and within the boundaries of the zone as those boundaries
96	96	existed on September 1, 1999, including subsequent improvements to
97	97	the property regardless of when made;
98	98	(B) generates taxes paid into a tax increment
99	99	fund created under Chapter 311, Tax Code, under a reinvestment zone
100	100	financing plan approved under Section 311.011(d), Tax Code, on or
101	101	before September 1, 1999; and
102	102	(C) is eligible for tax increment financing under
103	103	Chapter 311, Tax Code;
104	104	(5) the total dollar amount of any captured appraised
105	105	value of property that:
106	106	(A) is within a reinvestment zone:
107	107	(i) created on or before December 31, 2008,
108	108	by a municipality with a population of less than 18,000; and
109	109	(ii) the project plan for which includes
110	110	the alteration, remodeling, repair, or reconstruction of a
111	111	structure that is included on the National Register of Historic
112	112	Places and requires that a portion of the tax increment of the zone
113	113	be used for the improvement or construction of related facilities
114	114	or for affordable housing;
115	115	(B) generates school district taxes that are paid
116	116	into a tax increment fund created under Chapter 311, Tax Code; and
117	117	(C) is eligible for tax increment financing under
118	118	Chapter 311, Tax Code;
119	119	(6) the total dollar amount of any exemptions granted
120	120	under Section 11.251 or 11.253, Tax Code;
121	121	(7) the difference between the comptroller's estimate
122	122	of the market value and the productivity value of land that
123	123	qualifies for appraisal on the basis of its productive capacity,
124	124	except that the productivity value estimated by the comptroller may
125	125	not exceed the fair market value of the land;
126	126	(8) the portion of the appraised value of residence
127	127	homesteads of individuals who receive a tax limitation under
128	128	Section 11.26, Tax Code, on which school district taxes are not
129	129	imposed in the year that is the subject of the study, calculated as
130	130	if the residence homesteads were appraised at the full value
131	131	required by law;
132	132	(9) a portion of the market value of property not
133	133	otherwise fully taxable by the district at market value because of
134	134	action required by statute or the constitution of this state, other
135	135	than Section 11.311, Tax Code, that, if the tax rate adopted by the
136	136	district is applied to it, produces an amount equal to the
137	137	difference between the tax that the district would have imposed on
138	138	the property if the property were fully taxable at market value and
139	139	the tax that the district is actually authorized to impose on the
140	140	property, if this subsection does not otherwise require that
141	141	portion to be deducted;
142	142	(10) the market value of all tangible personal
143	143	property, other than manufactured homes, owned by a family or
144	144	individual and not held or used for the production of income;
145	145	(11) the appraised value of property the collection of
146	146	delinquent taxes on which is deferred under Section 33.06, Tax
147	147	Code;
148	148	(12) the portion of the appraised value of property
149	149	the collection of delinquent taxes on which is deferred under
150	150	Section 33.065, Tax Code;
151	151	(13) the amount by which the market value of a
152	152	residence homestead to which Section 23.23, Tax Code, applies
153	153	exceeds the appraised value of that property as calculated under
154	154	that section; and
155	155	(14) the total dollar amount of any exemptions granted
156	156	under Section 11.35, Tax Code.
157	157	SECTION 5. This Act takes effect immediately if it receives
158	158	a vote of two-thirds of all the members elected to each house, as
159	159	provided by Section 39, Article III, Texas Constitution. If this
160	160	Act does not receive the vote necessary for immediate effect, this
161	161	Act takes effect September 1, 2023.