Texas 2025 - 89th Regular

Texas House Bill HB4270 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R9883 RDS-D
2	2	By: Perez of El Paso H.B. No. 4270
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the authority of certain taxing units to enter into an
10	10	agreement to abate ad valorem taxes imposed on an individual's
11	11	residence homestead that is located in a reinvestment zone.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Sections 312.002(a) and (f), Tax Code, are
14	14	amended to read as follows:
15	15	(a) A taxing unit may not enter into a tax abatement
16	16	agreement under this chapter and the governing body of a
17	17	municipality or county may not designate an area as a reinvestment
18	18	zone unless the governing body has established guidelines and
19	19	criteria governing tax abatement agreements by the taxing unit and
20	20	a resolution stating that the taxing unit elects to become eligible
21	21	to participate in tax abatement. The guidelines applicable to
22	22	property other than property described by Section 312.009(b) or
23	23	312.211(a) must provide for the availability of tax abatement for
24	24	both new facilities and structures and for the expansion or
25	25	modernization of existing facilities and structures.
26	26	(f) Except as otherwise provided by this subsection,
27	27	on [On] or after September 1, 2001, a school district may not enter
28	28	into a tax abatement agreement under this chapter. A school
29	29	district may enter into a tax abatement agreement under Section
30	30	312.009.
31	31	SECTION 2. Subchapter A, Chapter 312, Tax Code, is amended
32	32	by adding Section 312.009 to read as follows:
33	33	Sec. 312.009. RESIDENCE HOMESTEAD TAX ABATEMENT AGREEMENT
34	34	BY TAXING UNIT OTHER THAN MUNICIPALITY OR COUNTY. (a) In this
35	35	section, "residence homestead" has the meaning assigned by Section
36	36	11.13.
37	37	(b) This section applies only to a property:
38	38	(1) that is located in a reinvestment zone designated
39	39	under this chapter by any taxing unit; and
40	40	(2) that the property owner occupies as the property
41	41	owner's residence homestead for the first time not earlier than one
42	42	year before the date the property owner enters into a tax abatement
43	43	agreement under this section.
44	44	(c) Notwithstanding any other provision of this chapter, a
45	45	taxing unit other than a municipality or county that is eligible to
46	46	enter into a tax abatement agreement under Section 312.002 or a
47	47	school district that meets the eligibility requirements of that
48	48	section for a taxing unit may enter into a tax abatement agreement
49	49	with the owner of a property to which this section applies to exempt
50	50	from taxation all or a portion of the value of the property:
51	51	(1) for a period not to exceed 10 years; and
52	52	(2) on the condition that the owner of the property
53	53	spend an amount specified in the agreement, that may not be less
54	54	than $500, to make improvements or repairs to the property during
55	55	the first year of the agreement.
56	56	(d) An agreement made under this section must:
57	57	(1) provide access to and authorize inspection of the
58	58	property by the taxing unit to ensure that the improvements or
59	59	repairs are made as provided by the agreement;
60	60	(2) provide for recapturing property tax revenue lost
61	61	as a result of the agreement if the owner of the property fails to
62	62	make the improvements or repairs as provided by the agreement; and
63	63	(3) provide that the governing body of the taxing unit
64	64	may cancel or modify the agreement if the property owner fails to
65	65	comply with the agreement.
66	66	(e) The expiration of the designation of a reinvestment zone
67	67	under this chapter does not affect an existing tax abatement
68	68	agreement entered into under this section.
69	69	SECTION 3. This Act takes effect September 1, 2025.