Bill Text: TX SB1647 | 2013-2014 | 83rd Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the Texas Economic Development Act.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-05-14 - Not again placed on intent calendar [SB1647 Detail]
Download: Texas-2013-SB1647-Introduced.html
Bill Title: Relating to the Texas Economic Development Act.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-05-14 - Not again placed on intent calendar [SB1647 Detail]
Download: Texas-2013-SB1647-Introduced.html
By: Deuell | S.B. No. 1647 | |
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relating to the Texas Economic Development Act. | ||||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||||
SECTION 1. Section 313.002, Tax Code, is amended to read as | ||||
follows: | ||||
Sec. 313.002. FINDINGS. The legislature finds that: | ||||
(1) many states have enacted aggressive economic | ||||
development laws designed to attract large employers, create jobs, | ||||
and strengthen their economies; | ||||
(2) given Texas' relatively high property taxes, it is | ||||
difficult for the state to compete for new capital projects without | ||||
some type of temporary limits on property taxes levied on new | ||||
investment [ |
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(3) a significant portion of the Texas economy | ||||
continues to be based in [ |
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capital-intensive industries [ |
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growth and overall health [ |
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Texas economy well; and | ||||
(4) without a vibrant, strong manufacturing sector, | ||||
other sectors of the economy, especially the state's service | ||||
sector, will also suffer adverse consequences[ |
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SECTION 2. Section 313.004, Tax Code, is amended to read as | ||||
follows: | ||||
Sec. 313.004. LEGISLATIVE INTENT. It is the intent of the | ||||
legislature in enacting this chapter that: | ||||
(1) economic development decisions should occur at the | ||||
local level and be consistent with identifiable statewide economic | ||||
development goals; | ||||
(2) this chapter should not be construed or | ||||
interpreted to allow: | ||||
(A) property owners to pool investments to create | ||||
sufficiently large investments to qualify for an ad valorem tax | ||||
benefit or financial benefit provided by this chapter; | ||||
(B) an applicant for an ad valorem tax benefit or | ||||
financial benefit provided by this chapter to assert that jobs will | ||||
be eliminated if certain investments are not made if the assertion | ||||
is not true; or | ||||
(C) an entity not subject to the franchise tax | ||||
imposed under Chapter 171 by virtue of its form of business [ |
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receive an ad valorem tax benefit or financial benefit provided by | ||||
this chapter; and | ||||
(3) in implementing this chapter, school districts | ||||
should: | ||||
(A) strictly interpret the criteria and | ||||
selection guidelines provided by this chapter; and | ||||
(B) approve only those applications for an ad | ||||
valorem tax benefit or financial benefit provided by this chapter | ||||
that: | ||||
(i) enhance the local community; | ||||
(ii) improve the local public education | ||||
system; | ||||
(iii) create high-paying jobs; and | ||||
(iv) advance the economic development goals | ||||
of this state as identified by the Texas Strategic Economic | ||||
Development Planning Commission or its successor. | ||||
SECTION 3. Section 313.021, Tax Code, is transferred to | ||||
Subchapter A, Chapter 313, Tax Code, redesignated as Section | ||||
313.0045, Tax Code, and amended to read as follows: | ||||
Sec. 313.0045 [ |
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chapter [ |
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(1) "Qualified investment" means: | ||||
(A) tangible personal property that is first | ||||
placed in service in this state during the applicable qualifying | ||||
time period that begins on or after January 1, 2002, without regard | ||||
to whether the property is affixed to or incorporated into real | ||||
property, and that is described as Section 1245 property by Section | ||||
1245(a), Internal Revenue Code of 1986; | ||||
(B) tangible personal property that is first | ||||
placed in service in this state during the applicable qualifying | ||||
time period that begins on or after January 1, 2002, without regard | ||||
to whether the property is affixed to or incorporated into real | ||||
property, and that is used in connection with the manufacturing, | ||||
processing, or fabrication in a cleanroom environment of a | ||||
semiconductor product, without regard to whether the property is | ||||
actually located in the cleanroom environment, including: | ||||
(i) integrated systems, fixtures, and | ||||
piping; | ||||
(ii) all property necessary or adapted to | ||||
reduce contamination or to control airflow, temperature, humidity, | ||||
chemical purity, or other environmental conditions or | ||||
manufacturing tolerances; and | ||||
(iii) production equipment and machinery, | ||||
moveable cleanroom partitions, and cleanroom lighting; | ||||
(C) tangible personal property that is first | ||||
placed in service in this state during the applicable qualifying | ||||
time period that begins on or after January 1, 2002, without regard | ||||
to whether the property is affixed to or incorporated into real | ||||
property, and that is used in connection with the operation of a | ||||
nuclear electric power generation facility, including: | ||||
(i) property, including pressure vessels, | ||||
pumps, turbines, generators, and condensers, used to produce | ||||
nuclear electric power; and | ||||
(ii) property and systems necessary to | ||||
control radioactive contamination; | ||||
(D) tangible personal property that is first | ||||
placed in service in this state during the applicable qualifying | ||||
time period that begins on or after January 1, 2002, without regard | ||||
to whether the property is affixed to or incorporated into real | ||||
property, and that is used in connection with operating an | ||||
integrated gasification combined cycle electric generation | ||||
facility, including: | ||||
(i) property used to produce electric power | ||||
by means of a combined combustion turbine and steam turbine | ||||
application using synthetic gas or another product produced by the | ||||
gasification of coal or another carbon-based feedstock; or | ||||
(ii) property used in handling materials to | ||||
be used as feedstock for gasification or used in the gasification | ||||
process to produce synthetic gas or another carbon-based feedstock | ||||
for use in the production of electric power in the manner described | ||||
by Subparagraph (i); | ||||
(E) tangible personal property that is first | ||||
placed in service in this state during the applicable qualifying | ||||
time period [ |
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regard to whether the property is affixed to or incorporated into | ||||
real property, and that is used in connection with operating an | ||||
advanced clean energy project, as defined by Section 382.003, | ||||
Health and Safety Code; [ |
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(F) a building or a permanent, nonremovable | ||||
component of a building that is built or constructed during the | ||||
applicable qualifying time period that begins on or after January | ||||
1, 2002, and that houses tangible personal property described by | ||||
Paragraph (A), (B), (C), (D), or (E); or | ||||
(G) a renovation, expansion, or other | ||||
improvement to an existing building as part of a discrete project | ||||
that increases the value of an existing property. | ||||
(2) "Qualified property" means: | ||||
(A) land: | ||||
(i) that is located in an area designated as | ||||
a reinvestment zone under Chapter 311 or 312 or as an enterprise | ||||
zone under Chapter 2303, Government Code; | ||||
(ii) on which a person proposes to | ||||
construct a new building or erect or affix a new improvement that | ||||
does not exist before the date the person applies for a limitation | ||||
on appraised value under this subchapter; | ||||
(iii) that is not subject to a tax abatement | ||||
agreement entered into by a school district under Chapter 312; and | ||||
(iv) on which, in connection with the new | ||||
building or [ |
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owner or lessee of, or the holder of another possessory interest in, | ||||
the land proposes to: | ||||
(a) make a qualified investment in an | ||||
amount equal to at least the minimum amount required by Section | ||||
313.023; and | ||||
(b) create at least 25 new jobs; | ||||
(B) the new building or other new improvement | ||||
described by Paragraph (A)(ii); and | ||||
(C) tangible personal property that: | ||||
(i) is not subject to a tax abatement | ||||
agreement entered into by a school district under Chapter 312; and | ||||
(ii) except for new equipment described in | ||||
Section 151.318(q) or (q-1), is first placed in service in the new | ||||
building or in or on the new improvement described by Paragraph | ||||
(A)(ii), or on the land on which that new building or new | ||||
improvement is located, if the personal property is ancillary and | ||||
necessary to the business conducted in that new building or in or on | ||||
that new improvement. | ||||
(3) "Qualifying job" means a permanent full-time job | ||||
that: | ||||
(A) requires at least 1,600 hours of work a year; | ||||
(B) is not transferred from one area in this | ||||
state to another area in this state; | ||||
(C) is not created to replace a previous | ||||
employee; | ||||
(D) complies with the Patient Protection and | ||||
Affordable Care Act (Pub. L. No. 111-148) or a successor law [ |
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(E) pays at least 110 percent of the lessor of: | ||||
(i) the county average weekly wage for | ||||
manufacturing jobs in the county where the job is located; or | ||||
(ii) the county average weekly wage for all | ||||
jobs in the county where the job is located, if the property owner | ||||
creates more than 1,000 jobs in that county. | ||||
(4) "Qualifying time period" means: | ||||
(A) the period that begins on the date that a | ||||
person's application for a limitation on appraised value under this | ||||
chapter [ |
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school district and ends on December 31 of the second tax year that | ||||
begins after that date, except as provided by Paragraph (B) or (C) | ||||
of this subdivision or Section 313.014(h) [ |
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(B) in connection with a nuclear electric power | ||||
generation facility, the first seven tax years that begin on or | ||||
after the third anniversary of the date the school district | ||||
approves the property owner's application for a limitation on | ||||
appraised value under this chapter [ |
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time period is agreed to by the governing body of the school | ||||
district and the property owner; or | ||||
(C) in connection with an advanced clean energy | ||||
project, as defined by Section 382.003, Health and Safety Code, the | ||||
first five tax years that begin on or after the third anniversary of | ||||
the date the school district approves the property owner's | ||||
application for a limitation on appraised value under this chapter | ||||
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governing body of the school district and the property owner. | ||||
(5) "County average weekly wage for manufacturing | ||||
jobs" means: | ||||
(A) the average weekly wage in a county for | ||||
manufacturing jobs during the most recent four quarterly periods | ||||
for which data is available at the time a person submits an | ||||
application for a limitation on appraised value under this chapter | ||||
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(B) the average weekly wage for manufacturing | ||||
jobs in the region designated for the regional planning commission, | ||||
council of governments, or similar regional planning agency created | ||||
under Chapter 391, Local Government Code, in which the county is | ||||
located during the most recent four quarterly periods for which | ||||
data is available at the time a person submits an application for a | ||||
limitation on appraised value under this chapter [ |
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computed by the Texas Workforce Commission. | ||||
(6) "Texas priority project" means a project | ||||
designated by the governor: | ||||
(A) that has a qualified investment in excess of | ||||
$1 billion; | ||||
(B) that the governor determines is in the best | ||||
interest of the state economy; and | ||||
(C) for which the governor certifies the | ||||
designation in writing to the entity applying for a limitation | ||||
under this chapter. | ||||
(b) Unless this chapter defines a word or phrase used in | ||||
this chapter, Section 1.04 or any other section of Title 1 or this | ||||
title that defines the word or phrase or ascribes a meaning to the | ||||
word or phrase applies to the word or phrase used in this chapter. | ||||
SECTION 4. Subsection (a), Section 313.006, Tax Code, is | ||||
amended to read as follows: | ||||
(a) In this section, "impact fee" means a charge or | ||||
assessment imposed against a qualified property[ |
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recouping the costs of capital improvements or facility expansions | ||||
for water, wastewater, or storm water services or for roads | ||||
necessitated by or attributable to property that receives a | ||||
limitation on appraised value under this chapter. | ||||
SECTION 5. Section 313.007, Tax Code, is amended to read as | ||||
follows: | ||||
Sec. 313.007. EXPIRATION. Subchapters (A-1), B, and C[ |
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SECTION 6. Chapter 313, Tax Code, is amended by adding | ||||
Subchapter A-1, and a heading is added to that subchapter to read as | ||||
follows: | ||||
SUBCHAPTER A-1. ELIGIBILITY; APPLICATION AND REPORTING | ||||
SECTION 7. Sections 313.024, 313.025, 313.026, 313.0265, | ||||
313.027, 313.0275, 313.028, 313.030, 313.031, and 313.032, Tax | ||||
Code, are transferred to Subchapter A-1, Chapter 313, Tax Code, as | ||||
added by this Act, and redesignated as Sections 313.011, 313.012, | ||||
313.013, 313.0135, 313.014, 313.0145, 313.015, 313.016, 313.017, | ||||
and 313.018, Tax Code, respectively, and amended to read as | ||||
follows: | ||||
Sec. 313.011 [ |
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chapter applies [ |
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property owned by an entity to which Chapter 171 applies. | ||||
(b) To be eligible for a limitation on appraised value under | ||||
this chapter [ |
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connection with: | ||||
(1) manufacturing; | ||||
(2) research and development; | ||||
(3) a clean coal project, as defined by Section 5.001, | ||||
Water Code; | ||||
(4) an advanced clean energy project, as defined by | ||||
Section 382.003, Health and Safety Code; | ||||
(5) renewable energy electric generation; | ||||
(6) electric power generation using integrated | ||||
gasification combined cycle technology; | ||||
(7) nuclear electric power generation; [ |
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(8) a computer center primarily used in connection | ||||
with one or more activities described by Subdivisions (1) through | ||||
(7) conducted by the entity; or | ||||
(9) a Texas priority project. | ||||
(c) For purposes of determining an applicant's eligibility | ||||
for a limitation under this chapter [ |
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(1) the land on which a building or component of a | ||||
building described by Section 313.0045(a)(1)(E) [ |
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located is not considered a qualified investment; | ||||
(2) property that is leased under a capitalized lease | ||||
may be considered a qualified investment; | ||||
(3) property that is leased under an operating lease | ||||
may not be considered a qualified investment; and | ||||
(4) property that is owned by a person other than the | ||||
applicant and that is pooled or proposed to be pooled with property | ||||
owned by the applicant may not be included in determining the amount | ||||
of the applicant's qualifying investment. | ||||
(d) To be eligible for a limitation on appraised value under | ||||
this chapter [ |
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created by the property owner must be qualifying jobs [ |
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(e) In this section: | ||||
(1) "Manufacturing" means an establishment primarily | ||||
engaged in activities described in sectors 31-33 of the 2007 North | ||||
American Industry Classification System. | ||||
(2) "Renewable energy electric generation" means an | ||||
establishment primarily engaged in activities described in | ||||
category 221119 of the 1997 North American Industry Classification | ||||
System. | ||||
(3) "Integrated gasification combined cycle | ||||
technology" means technology used to produce electricity in a | ||||
combined combustion turbine and steam turbine application using | ||||
synthetic gas or another product produced from the gasification of | ||||
coal or another carbon-based feedstock, including related | ||||
activities such as materials-handling and gasification of coal or | ||||
another carbon-based feedstock. | ||||
(4) "Nuclear electric power generation" means | ||||
activities described in category 221113 of the 2002 North American | ||||
Industry Classification System. | ||||
(5) "Research and development" means an establishment | ||||
primarily engaged in activities described in category 541710 of the | ||||
2002 North American Industry Classification System. | ||||
(6) "Computer center" means an establishment | ||||
primarily engaged in providing electronic data processing and | ||||
information storage. | ||||
Sec. 313.012 [ |
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APPLICATION. (a) The owner or lessee of, or the holder of another | ||||
possessory interest in, any qualified property [ |
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of the school district in which the property is located for a | ||||
limitation on the appraised value for school district maintenance | ||||
and operations ad valorem tax purposes of the person's qualified | ||||
property. An application must be made on the form prescribed by the | ||||
comptroller and include the information required by the | ||||
comptroller, and it must be accompanied by: | ||||
(1) the application fee established by the governing | ||||
body of the school district; | ||||
(2) information sufficient to show that the real and | ||||
personal property identified in the application as qualified | ||||
property meets the applicable criteria established by Section | ||||
313.0045(a)(2) [ |
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(3) information relating to each applicable criterion | ||||
listed in Section 313.013 [ |
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(a-1) Within seven days of the receipt of each document, the | ||||
school district shall submit to the comptroller a copy of the | ||||
application and the agreement between the applicant and the school | ||||
district. If an economic analysis of the proposed project is | ||||
submitted to the school district, the district shall submit a copy | ||||
of the analysis to the comptroller. In addition, the school | ||||
district shall submit to the comptroller any subsequent revision of | ||||
or amendment to any of those documents within seven days of its | ||||
receipt. The comptroller shall publish each document received from | ||||
the school district under this subsection on the comptroller's | ||||
Internet website. If the school district maintains a generally | ||||
accessible Internet website, the district shall provide on its | ||||
website a link to the location of those documents posted on the | ||||
comptroller's website in compliance with this subsection. This | ||||
subsection does not require the comptroller to post information | ||||
that is confidential under Section 313.015 [ |
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(b) The governing body of a school district is not required | ||||
to consider an application for a limitation on appraised value that | ||||
is filed with the governing body under Subsection (a). If the | ||||
governing body of the school district does elect to consider an | ||||
application, the governing body shall deliver three copies of the | ||||
application to the comptroller and request that the comptroller | ||||
provide an economic impact evaluation of the application to the | ||||
school district. Except as provided by Subsection (b-1), the | ||||
comptroller shall conduct or contract with a third person to | ||||
conduct the evaluation, which shall be completed and provided to | ||||
the governing body of the school district as soon as practicable. | ||||
The governing body shall provide to the comptroller or third person | ||||
any requested information. A methodology to allow comparisons of | ||||
economic impact for different schedules of the addition of | ||||
qualified investment or qualified property may be developed as part | ||||
of the economic impact evaluation. The governing body shall | ||||
provide a copy of the evaluation to the applicant on request. The | ||||
comptroller may charge and collect a fee sufficient to cover the | ||||
costs of providing the economic impact evaluation. The governing | ||||
body of a school district shall approve or disapprove an | ||||
application before the 151st day after the date the application is | ||||
filed, unless the economic impact evaluation has not been received | ||||
or an extension is agreed to by the governing body and the | ||||
applicant. | ||||
(b-1) The comptroller shall indicate on one copy of the | ||||
application the date the comptroller received the application and | ||||
deliver a [ |
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Education Agency shall determine the effect that the applicant's | ||||
proposal will have on the number or size of the school district's | ||||
instructional facilities, as required to be included in the | ||||
economic impact evaluation by Section 313.013(a)(11) | ||||
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agency's determination to the comptroller. The governing body of | ||||
the school district shall provide any requested information to the | ||||
Texas Education Agency. Not later than the 45th day after the date | ||||
the application indicates that the comptroller received the | ||||
application, the Texas Education Agency shall make the required | ||||
determination and submit the agency's written report to the | ||||
comptroller. A third person contracted by the comptroller to | ||||
conduct an economic impact evaluation of an application is not | ||||
required to make a determination that the Texas Education Agency is | ||||
required to make and report to the comptroller under this | ||||
subsection. | ||||
(c) In determining whether to grant an application, the | ||||
governing body of the school district is entitled to request and | ||||
receive assistance from: | ||||
(1) the comptroller; | ||||
(2) the Texas Department of Economic Development; | ||||
(3) the Texas Workforce Investment Council; and | ||||
(4) the Texas Workforce Commission. | ||||
(d) Before the 91st day after the date the comptroller | ||||
receives the copy of the application, the comptroller shall submit | ||||
a recommendation to the governing body of the school district as to | ||||
whether the application should be approved or disapproved. | ||||
(d-1) The governing body of a school district may approve an | ||||
application that the comptroller has recommended should be | ||||
disapproved only if: | ||||
(1) the governing body holds a public hearing the sole | ||||
purpose of which is to consider the application and the | ||||
comptroller's recommendation; and | ||||
(2) at a subsequent meeting of the governing body held | ||||
after the date of the public hearing, at least two-thirds of the | ||||
members of the governing body vote to approve the application. | ||||
(e) Before approving or disapproving an application under | ||||
this chapter [ |
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consider, the governing body of the school district must make a | ||||
written finding as to each criterion listed in Section 313.013 | ||||
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findings to the applicant. | ||||
(f) The governing body may approve an application only if | ||||
the governing body finds that the information in the application is | ||||
true and correct, finds that the applicant is eligible for the | ||||
limitation on the appraised value of the person's qualified | ||||
property, and determines that granting the application is in the | ||||
best interest of the school district and this state. | ||||
(f-1) Notwithstanding any other provision of this chapter | ||||
to the contrary, including Section 313.003(2) or 313.004(3)(A) or | ||||
(B)(iii), the governing body of a school district may waive the new | ||||
jobs creation requirement in Section 313.0045(a)(2)(A)(iv)(b) | ||||
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the governing body makes a finding that the jobs creation | ||||
requirement exceeds the industry standard for the number of | ||||
employees reasonably necessary for the operation of the facility of | ||||
the property owner that is described in the application. | ||||
(g) The Texas Department of Economic Development or its | ||||
successor may recommend that a school district grant a person a | ||||
limitation on appraised value under this chapter. In determining | ||||
whether to grant an application, the governing body of the school | ||||
district shall consider any recommendation made by the Texas | ||||
Department of Economic Development or its successor. | ||||
(h) After receiving a copy of the application, the | ||||
comptroller shall determine whether the property meets the | ||||
requirements of Section 313.011 [ |
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limitation on appraised value under this chapter [ |
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comptroller shall notify the governing body of the school district | ||||
of the comptroller's determination and provide the applicant an | ||||
opportunity for a hearing before the determination becomes final. | ||||
A hearing under this subsection is a contested case hearing and | ||||
shall be conducted by the State Office of Administrative Hearings | ||||
in the manner provided by Section 2003.101, Government Code. The | ||||
applicant has the burden of proof on each issue in the hearing. The | ||||
applicant may seek judicial review of the comptroller's | ||||
determination in a Travis County district court under the | ||||
substantial evidence rule as provided by Subchapter G, Chapter | ||||
2001, Government Code. | ||||
(i) If the comptroller's determination under Subsection (h) | ||||
that the property does not meet the requirements of Section 313.011 | ||||
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this chapter [ |
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required to provide an economic impact evaluation of the | ||||
application or to submit a recommendation to the school district as | ||||
to whether the application should be approved or disapproved, and | ||||
the governing body of the school district may not grant the | ||||
application. | ||||
Sec. 313.013 [ |
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(a) The economic impact evaluation of the application must include | ||||
the following: | ||||
(1) the recommendations of the comptroller; | ||||
(2) the name of the school district; | ||||
(3) the name of the applicant; | ||||
(4) a description of the general nature of the | ||||
applicant's investment; | ||||
(5) [ |
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intended investment [ |
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(6) [ |
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operations jobs to be created by the applicant; | ||||
(7) [ |
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offered by the applicant to qualifying, construction, and | ||||
operations job holders; | ||||
(8) [ |
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relocate in another state or another region of this state; | ||||
(9) [ |
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this state and individual local units of government, including: | ||||
(A) tax and other revenue gains, direct and | ||||
otherwise [ |
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construction and operation of the facility, including [ |
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the limitation period considered appropriate by the comptroller; | ||||
and | ||||
(B) economic effects of the project, including | ||||
the impact on jobs and income, direct and otherwise, during the | ||||
construction and operation of the facility, including [ |
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the limitation period considered appropriate by the comptroller; | ||||
(10) [ |
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the state at the time the person's application is being considered; | ||||
(11) [ |
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approved, on the number or size of the school district's | ||||
instructional facilities, as defined by Section 46.001, Education | ||||
Code; and | ||||
(12) [ |
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Program of payments to the district for each year of the agreement[ |
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(b) The comptroller's recommendations shall be based on the | ||||
criteria listed in Subsection (a) [ |
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any other information available to the comptroller, including | ||||
information provided by the governing body of the school district | ||||
under Section 313.012(b) [ |
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Sec. 313.0135 [ |
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LIMITATION INFORMATION. (a) The comptroller shall post on the | ||||
comptroller's Internet website each document or item of information | ||||
the comptroller designates as substantive before the 15th day after | ||||
the date the document or item of information was received or | ||||
created. Each document or item of information must continue to be | ||||
posted until the appraised value limitation expires. | ||||
(b) The comptroller shall designate the following as | ||||
substantive: | ||||
(1) each application requesting a limitation on | ||||
appraised value; and | ||||
(2) the economic impact evaluation made in connection | ||||
with the application[ |
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[ |
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(c) If a school district maintains a generally accessible | ||||
Internet website, the district shall maintain a link on its | ||||
Internet website to the area of the comptroller's Internet website | ||||
where information on each of the district's agreements to limit | ||||
appraised value is maintained. | ||||
Sec. 313.014 [ |
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AGREEMENT. (a) If the person's application is approved by the | ||||
governing body of the school district, [ |
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|
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the appraised value for school district maintenance and operations | ||||
ad valorem tax purposes of the person's qualified property as | ||||
described in the agreement between the person and the district | ||||
entered into under this section in the school district may not | ||||
exceed the lesser of: | ||||
(1) the market value of the property; or | ||||
(2) [ |
||||
by the governing body of the school district under Subchapter B or | ||||
C, as applicable. | ||||
(b) The agreement must provide that the limitation under | ||||
Subsection (a) shall apply for a period of 10 years. The agreement | ||||
must specify the beginning date of the limitation, which must be the | ||||
first tax year beginning after either: | ||||
(1) the application date; | ||||
(2) the qualifying time period; or | ||||
(3) the date commercial operations begin at the | ||||
project site. [ |
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(c) The limitation amounts prescribed under Subchapter B or | ||||
C, as applicable, [ |
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school district, regardless of category, may agree to a greater | ||||
amount than those amounts. | ||||
(d) The governing body of the school district and the | ||||
property owner shall enter into a written agreement for the | ||||
implementation of the limitation on appraised value under this | ||||
chapter [ |
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(e) The agreement must describe with specificity the | ||||
qualified investment that the person will make on or in connection | ||||
with the person's qualified property that is subject to the | ||||
limitation on appraised value under this chapter [ |
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Other property of the person that is not specifically described in | ||||
the agreement is not subject to the limitation unless the governing | ||||
body of the school district, by official action, provides that the | ||||
other property is subject to the limitation. | ||||
(f) In addition, the agreement: | ||||
(1) must incorporate each relevant provision of this | ||||
chapter [ |
||||
provisions for the protection of future school district revenues | ||||
through the adjustment of the minimum valuations, the payment of | ||||
revenue offsets, and other mechanisms agreed to by the property | ||||
owner and the school district; | ||||
(2) may provide that the property owner will protect | ||||
the school district in the event the district incurs extraordinary | ||||
education-related expenses related to the project that are not | ||||
directly funded in state aid formulas, including expenses for the | ||||
purchase of portable classrooms and the hiring of additional | ||||
personnel to accommodate a temporary increase in student enrollment | ||||
attributable to the project; | ||||
(3) must require the property owner to maintain a | ||||
viable presence in the school district for at least three years | ||||
after the date the limitation on appraised value of the owner's | ||||
property expires; | ||||
(4) must provide for the termination of the agreement, | ||||
the recapture of ad valorem tax revenue lost as a result of the | ||||
agreement if the owner of the property fails to comply with the | ||||
terms of the agreement, and payment of a penalty or interest, or | ||||
both, on that recaptured ad valorem tax revenue; | ||||
(5) may specify any conditions the occurrence of which | ||||
will require the district and the property owner to renegotiate all | ||||
or any part of the agreement; and | ||||
(6) must specify the ad valorem tax years covered by | ||||
the agreement. | ||||
(g) When appraising a person's qualified property subject | ||||
to a limitation on appraised value under this section, the chief | ||||
appraiser shall determine the market value of the property and | ||||
include both the market value and the appropriate value under | ||||
Subsection (a) in the appraisal records. | ||||
(h) The agreement between the governing body of the school | ||||
district and the applicant may provide for a deferral of the date on | ||||
which the qualifying time period for the project is to commence or, | ||||
subsequent to the date the agreement is entered into, be amended to | ||||
provide for such a deferral. However, such limitation may take | ||||
effect no later than the fourth tax year beginning after the date | ||||
the application is approved. This subsection may not be construed | ||||
to permit a qualifying time period that has commenced to continue | ||||
for more than the number of years applicable to the project under | ||||
Section 313.0045(a)(4) [ |
||||
(i) A person and the school district may not enter into an | ||||
agreement under which the person agrees to provide supplemental | ||||
payments to a school district, or any other entity on behalf of the | ||||
school district, in an amount that exceeds an amount equal to $100 | ||||
per student per year in average daily attendance, as defined by | ||||
Section 42.005, Education Code, or for a period that exceeds the | ||||
period beginning with the period described by Section | ||||
313.0045(a)(4) [ |
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date the person's eligibility for the limitation under this chapter | ||||
expires [ |
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|
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(f)(1) or (2) [ |
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(j) An agreement under this chapter must disclose any | ||||
consideration promised in conjunction with the application and the | ||||
limitation. | ||||
Sec. 313.0145 [ |
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REVENUE LOST. (a) Notwithstanding any other provision of this | ||||
chapter to the contrary, a person with whom a school district enters | ||||
into an agreement under this chapter [ |
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minimum amount of qualified investment [ |
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each year of the agreement. | ||||
(b) If in any tax year a property owner fails to comply with | ||||
Subsection (a), the property owner is liable to this state for a | ||||
penalty equal to the amount computed by subtracting from the market | ||||
value of the property for that tax year the value of the property as | ||||
limited by the agreement and multiplying the difference by the | ||||
maintenance and operations tax rate of the school district for that | ||||
tax year. | ||||
(c) A penalty imposed under Subsection (b) becomes | ||||
delinquent if not paid on or before February 1 of the following tax | ||||
year. Section 33.01 applies to the delinquent penalty in the manner | ||||
that section applies to delinquent taxes. | ||||
(d) In the event of a casualty loss, the applicant may | ||||
request and the school district may grant a waiver of the | ||||
requirements of this section. | ||||
Sec. 313.015 [ |
||||
CONFIDENTIAL. Information provided to a school district in | ||||
connection with an application for a limitation on appraised value | ||||
under this chapter [ |
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processes or business activities to be conducted or the specific | ||||
tangible personal property to be located on real property covered | ||||
by the application shall be segregated in the application from | ||||
other information in the application and is confidential and not | ||||
subject to public disclosure unless the governing body of the | ||||
school district approves the application. Other information in the | ||||
custody of a school district or the comptroller in connection with | ||||
the application, including information related to the economic | ||||
impact of a project or the essential elements of eligibility under | ||||
this chapter, such as the nature and amount of the projected | ||||
investment, employment, wages, and benefits, may not be considered | ||||
confidential business information if the governing body of the | ||||
school district agrees to consider the application. Information in | ||||
the custody of a school district or the comptroller if the governing | ||||
body approves the application is not confidential under this | ||||
section. | ||||
Sec. 313.016 [ |
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ABATEMENT. Property subject to a limitation on appraised value in a | ||||
tax year under this chapter [ |
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abatement by a school district under Chapter 312 in that tax year. | ||||
Sec. 313.017 [ |
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comptroller shall: | ||||
(1) adopt rules and forms necessary for the | ||||
implementation and administration of this chapter, including rules | ||||
for determining whether a property owner's property qualifies as a | ||||
qualified investment under Section 313.0045(a)(1) [ |
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and | ||||
(2) provide without charge one copy of the rules and | ||||
forms to any school district and to any person who states that the | ||||
person intends to apply for a limitation on appraised value under | ||||
this chapter [ |
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(b) The governing body of a school district by official | ||||
action shall establish reasonable nonrefundable application fees | ||||
to be paid by property owners who apply to the district for a | ||||
limitation on the appraised value of the person's property under | ||||
this chapter [ |
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reasonable and may not exceed the estimated cost to the district of | ||||
processing and acting on an application, including the cost of the | ||||
economic impact evaluation required by Sections 313.012 [ |
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and 313.013 [ |
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Sec. 313.018 [ |
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AGREEMENTS. (a) Before the beginning of each regular session of | ||||
the legislature, the comptroller shall submit to the lieutenant | ||||
governor, the speaker of the house of representatives, and each | ||||
other member of the legislature a report on agreements made under | ||||
this chapter. The report must include: | ||||
(1) an assessment of the combination of all agreements | ||||
under the program, including: | ||||
(A) the total number of jobs created, direct and | ||||
otherwise, in Texas; | ||||
(B) the total impact on personal income, direct | ||||
and otherwise, in Texas; | ||||
(C) the total amount of investment, direct and | ||||
otherwise, in Texas; | ||||
(D) the total amount of taxable value on the tax | ||||
rolls, direct and otherwise, in Texas, including properties for | ||||
which the limitation period has expired; | ||||
(E) the total amount of value not on the tax rolls | ||||
as a result of a limitation agreement; and | ||||
(F) the total fiscal effects, direct and | ||||
otherwise, on state and local units of government in Texas; and | ||||
(2) an assessment of [ |
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agreement made under this chapter. The report must be based on data | ||||
certified to the comptroller by each recipient of a limitation on | ||||
appraised value under this chapter [ |
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agreement: | ||||
(A) [ |
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recipient of a limitation on appraised value committed to create; | ||||
(B) [ |
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recipient created; | ||||
(C) [ |
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of the new jobs each recipient created; | ||||
(D) [ |
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each recipient committed to spend or allocate for each project; | ||||
(E) [ |
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investment each recipient spent or allocated for each project; | ||||
(F) [ |
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property of each recipient as determined by the applicable chief | ||||
appraiser, including that of property for which the agreement has | ||||
expired; | ||||
(G) [ |
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the qualified property of each recipient; and | ||||
(H) [ |
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[ |
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qualified property[ |
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[ |
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[ |
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(b) The report may not include information that is | ||||
confidential by law. | ||||
(c) In preparing the assessment required under Subsection | ||||
(a)(1), the comptroller may use standard economic estimation | ||||
techniques, including economic multipliers. | ||||
(d) The comptroller may require a recipient to submit, on a | ||||
form the comptroller provides, information required to prepare | ||||
[ |
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[ |
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SECTION 8. The heading to Subchapter B, Chapter 313, Tax | ||||
Code, is amended to read as follows: | ||||
SUBCHAPTER B. GENERAL LIMITATION ON APPRAISED VALUE OF CERTAIN | ||||
PROPERTY USED TO CREATE JOBS | ||||
SECTION 9. Subsection (b), Section 313.022, Tax Code, is | ||||
amended to read as follows: | ||||
(b) For purposes of determining the required minimum amount | ||||
of a qualified investment under Section 313.0045(a)(2)(A)(iv)(a) | ||||
[ |
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appraised value under this subchapter [ |
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districts to which this subchapter applies are categorized | ||||
according to the taxable value of property in the district for the | ||||
preceding tax year determined under Subchapter M, Chapter 403, | ||||
Government Code, as follows: | ||||
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SECTION 10. Section 313.023, Tax Code, is amended to read as | ||||
follows: | ||||
Sec. 313.023. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. For | ||||
each category of school district established by Section 313.022, | ||||
the minimum amount of a qualified investment under Section | ||||
313.0045(a)(2)(A)(iv)(a) [ |
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SECTION 11. Subchapter B, Chapter 313, Tax Code, is amended | ||||
by adding Section 313.0235 to read as follows: | ||||
Sec. 313.0235. LIMITATION ON APPRAISED VALUE. For a school | ||||
district to which this subchapter applies, the amount agreed to by | ||||
the governing body of the district must be an amount in accordance | ||||
with the following, according to the category established by | ||||
Section 313.022 to which the school district belongs: | ||||
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SECTION 12. The heading to Subchapter C, Chapter 313, Tax | ||||
Code, is amended to read as follows: | ||||
SUBCHAPTER C. LIMITATION ON APPRAISED VALUE OF PROPERTY IN | ||||
CERTAIN [ |
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SECTION 13. Subsections (a) and (b), Section 313.051, Tax | ||||
Code, are amended to read as follows: | ||||
(a) This subchapter applies only to a school district that | ||||
has territory in: | ||||
(1) an area determined by the comptroller to be in: | ||||
(A) a county that has above state average | ||||
unemployment and below state average per capita income; | ||||
(B) a federally designated urban enterprise | ||||
community or urban enhanced enterprise community; or | ||||
(C) a defense economic readjustment zone | ||||
designated under Chapter 2310, Government Code [ |
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(2) a county: | ||||
(A) that has a population of less than 50,000; | ||||
and | ||||
(B) in which, during the decade preceding [ |
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census, the population: | ||||
(i) remained the same; | ||||
(ii) decreased; or | ||||
(iii) increased, but at a rate of not more | ||||
than three percent per annum. | ||||
(b) [ |
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otherwise provided by this subchapter, the provisions of Subchapter | ||||
A-1 [ |
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For purposes of this subchapter, a property owner is required to | ||||
create only at least 10 new jobs on the owner's qualified property. | ||||
At least 80 percent of all the new jobs created must be qualifying | ||||
jobs [ |
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district described by Subsection (a)(2), each qualifying job must | ||||
pay at least 110 percent of the average weekly wage for | ||||
manufacturing jobs in the region designated for the regional | ||||
planning commission, council of governments, or similar regional | ||||
planning agency created under Chapter 391, Local Government Code, | ||||
in which the district is located. | ||||
SECTION 14. Sections 313.052 and 313.053, Tax Code, are | ||||
amended to read as follows: | ||||
Sec. 313.052. CATEGORIZATION OF SCHOOL DISTRICTS. For | ||||
purposes of determining the required minimum amount of a qualified | ||||
investment under Section 313.0045(a)(2)(A)(iv)(a) | ||||
[ |
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appraised value under this subchapter, school districts to which | ||||
this subchapter applies are categorized according to the taxable | ||||
value of industrial property in the district for the preceding tax | ||||
year determined under Subchapter M, Chapter 403, Government Code, | ||||
as follows: | ||||
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Sec. 313.053. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. For | ||||
each category of school district established by Section 313.052, | ||||
the minimum amount of a qualified investment under Section | ||||
313.0045(a)(2)(A)(iv)(a) [ |
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SECTION 15. Subsection (a), Section 313.054, Tax Code, is | ||||
amended to read as follows: | ||||
(a) For a school district to which this subchapter applies, | ||||
the amount agreed to by the governing body of the district [ |
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|
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following, according to the category established by Section 313.052 | ||||
to which the school district belongs: | ||||
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SECTION 16. The heading to Subchapter E, Chapter 313, Tax | ||||
Code, is amended to read as follows: | ||||
SUBCHAPTER E. EFFECT [ |
||||
EXPIRATION [ |
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SECTION 17. Section 313.171, Tax Code, is amended to read as | ||||
follows: | ||||
Sec. 313.171. SAVING PROVISION [ |
||||
limitation on appraised value approved under Subchapter A-1, B, or | ||||
C before the expiration of that subchapter continues in effect | ||||
according to that subchapter as that subchapter existed immediately | ||||
before its expiration, and that law is continued in effect for | ||||
purposes of the limitation on appraised value. | ||||
[ |
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SECTION 18. The following provisions of the Tax Code are | ||||
repealed: | ||||
(1) Sections 313.005, 313.008, and 313.009; and | ||||
(2) Subchapter D, Chapter 313. | ||||
SECTION 19. To the extent of any conflict, this Act prevails | ||||
over another Act of the 83rd Legislature, Regular Session, 2013, | ||||
relating to nonsubstantive additions to and corrections in enacted | ||||
codes. | ||||
SECTION 20. (a) Except as provided by Subsection (b) of | ||||
this section, Chapter 313, Tax Code, as amended by this Act, applies | ||||
only to an agreement entered into under that chapter on or after the | ||||
effective date of this Act. An agreement entered into under that | ||||
chapter before the effective date of this Act is governed by the law | ||||
in effect on the date the agreement was entered into, and the former | ||||
law is continued in effect for that purpose. | ||||
(b) The repeal by this Act of Subchapter D, Chapter 313, Tax | ||||
Code, does not apply to a tax credit granted based on an application | ||||
for a tax credit submitted before the effective date of this Act. A | ||||
tax credit granted based on an application submitted before the | ||||
effective date of this Act is governed by the law in effect | ||||
immediately before the effective date of this Act, and that law is | ||||
continued in effect for that purpose. | ||||
SECTION 21. This Act takes effect immediately if it | ||||
receives a vote of two-thirds of all the members elected to each | ||||
house, as provided by Section 39, Article III, Texas Constitution. | ||||
If this Act does not receive the vote necessary for immediate | ||||
effect, this Act takes effect September 1, 2013. |