Bill Text: TX SB627 | 2011-2012 | 82nd Legislature | Enrolled

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Bill Title: Relating to the participation by certain taxing units in tax increment financing and the payment of tax increments into the tax increment fund for a reinvestment zone.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Passed) 2011-06-17 - Effective immediately [SB627 Detail]

Download: Texas-2011-SB627-Enrolled.html

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S.B. No. 627

AN ACT
relating to the participation by certain taxing units in tax
increment financing and the payment of tax increments into the tax
increment fund for a reinvestment zone.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 311.013, Tax Code, is amended by
amending Subsection (c) and adding Subsections (c-1), (f-1), and
(f-2) to read as follows:
(c) Notwithstanding any termination of the reinvestment
zone under Section 311.017(a) and unless otherwise specified by an
agreement between the taxing unit and the municipality or county
that created the zone, a taxing unit shall make a payment required
by Subsection (b) not later than the 90th day after the later of:
(1) the delinquency date for the unit's property
taxes; or
(2) the date the municipality or county that created
the zone submits to the taxing unit an invoice specifying the tax
increment produced by the taxing unit and the amount the taxing unit
is required to pay into the tax increment fund for the zone.
(c-1) A delinquent payment incurs a penalty of five percent
of the amount delinquent and accrues interest at an annual rate of
10 percent.
(f-1) This subsection does not apply to a hospital district
to which Section 281.095, Health and Safety Code, applies.
Notwithstanding Subsection (f), the commissioners court of a county
that enters into an agreement with the governing body of a
municipality under Subsection (f) may enter into an agreement with
the governing body of the municipality under that subsection on
behalf of a taxing unit other than the county if by statute the ad
valorem tax rate of the other taxing unit is approved by the
commissioners court or the commissioners court is expressly
required by statute to levy the ad valorem taxes of the other taxing
unit. The agreement entered into on behalf of the other taxing unit
is not required to contain the same conditions as the agreement
entered into on behalf of the county. This subsection does not
authorize the commissioners court of a county to enter into an
agreement on behalf of another taxing unit solely because the
county tax assessor-collector is required by law to assess or
collect the taxing unit's ad valorem taxes.
(f-2) This subsection does not apply to a hospital district
to which Section 281.095, Health and Safety Code, applies.
Notwithstanding Subsection (f), the commissioners court of a county
that creates a zone may provide by order for the payment into the
tax increment fund for the zone of a portion of the tax increment
produced by a taxing unit other than the county if by statute the ad
valorem tax rate of the other taxing unit is approved by the
commissioners court or the commissioners court is expressly
required by statute to levy the ad valorem taxes of the other taxing
unit. The order may include conditions for payment of that tax
increment into the fund that are different from the conditions
applicable to the county's obligation to pay into the fund the tax
increment produced by the county. This subsection does not
authorize the commissioners court of a county to provide for the
payment into the fund of a portion of the tax increment produced by
another taxing unit solely because the county tax
assessor-collector is required by law to assess or collect the
taxing unit's ad valorem taxes.
SECTION 2. This Act applies only to a taxing unit's tax
increment for a period occurring on or after the effective date of
this Act. A taxing unit's tax increment for a period occurring
before the effective date of this Act is governed by the law in
effect for that period, and the former law is continued in effect
for that purpose.
SECTION 3. 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, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 627 passed the Senate on
April 27, 2011, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 627 passed the House on
May 23, 2011, by the following vote: Yeas 142, Nays 0, one
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor