| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the eligibility of property for a limitation on |
|
|
appraised value for school district maintenance and operations ad |
|
|
valorem tax purposes under the Texas Economic Development Act. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Sections 313.025(b), (d), and (f-1), Tax Code, |
|
|
are amended to read as follows: |
|
|
(b) The governing body of a school district is not required |
|
|
to consider an application for a limitation on appraised value. If |
|
|
the governing body of the school district elects to consider an |
|
|
application, the governing body shall deliver a copy of the |
|
|
application to the comptroller and request that the comptroller |
|
|
conduct an economic impact evaluation of the investment proposed by |
|
|
the application. In addition, the governing body may request that |
|
|
the comptroller submit a recommendation as to whether the new jobs |
|
|
creation requirement should be reduced or waived and, if reduced, |
|
|
the number of new jobs that should be required to be created. The |
|
|
comptroller shall conduct or contract with a third person to |
|
|
conduct the economic impact evaluation, which shall be completed |
|
|
and provided to the governing body of the school district, along |
|
|
with the comptroller's certificate or written explanation under |
|
|
Subsection (d)(1) and recommendation under Subsection (d)(2), if |
|
|
requested [(d)], as soon as practicable but not later than the 90th |
|
|
day after the date the comptroller receives the application. The |
|
|
governing body shall provide to the comptroller or to a third person |
|
|
contracted by the comptroller to conduct the economic impact |
|
|
evaluation 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 economic impact evaluation to the |
|
|
applicant on request. The comptroller may charge the applicant 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 not later than the 150th 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. |
|
|
(d) Not later than the 90th day after the date the |
|
|
comptroller receives the copy of the application, the comptroller |
|
|
shall: |
|
|
(1) issue a certificate for a limitation on appraised |
|
|
value of the property and provide the certificate to the governing |
|
|
body of the school district or provide the governing body a written |
|
|
explanation of the comptroller's decision not to issue a |
|
|
certificate; and |
|
|
(2) if requested by the governing body of the school |
|
|
district, submit to the governing body a recommendation as to |
|
|
whether the new jobs creation requirement should be reduced or |
|
|
waived and, if reduced, the number of new jobs that should be |
|
|
required to be created. |
|
|
(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 or |
|
|
reduce the new jobs creation requirement in Section |
|
|
313.021(2)(A)(iv)(b) or 313.051(b) only [and approve an
|
|
|
application] if the comptroller determines [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 and recommends waiving or reducing the requirement. |
|
|
SECTION 2. Sections 313.026(a) and (b), Tax Code, are |
|
|
amended to read as follows: |
|
|
(a) The economic impact evaluation of the application must |
|
|
include any information the comptroller determines is necessary or |
|
|
helpful to: |
|
|
(1) the governing body of the school district in |
|
|
determining whether to approve the application under Section |
|
|
313.025; or |
|
|
(2) the comptroller in determining whether to: |
|
|
(A) issue a certificate for a limitation on |
|
|
appraised value of the property under Section 313.025; and |
|
|
(B) if requested, submit a recommendation |
|
|
regarding waiver or reduction of the new jobs creation requirement |
|
|
under Section 313.025. |
|
|
(b) Except as provided by Subsections (c) and (d), the |
|
|
comptroller's determination whether to issue a certificate for a |
|
|
limitation on appraised value under this chapter for property |
|
|
described in the application and whether to, if requested, submit a |
|
|
recommendation regarding waiver or reduction of the new jobs |
|
|
creation requirement shall be based on the economic impact |
|
|
evaluation described by Subsection (a) and on any other information |
|
|
available to the comptroller, including information provided by the |
|
|
governing body of the school district. |
|
|
SECTION 3. Section 313.027(f), Tax Code, is amended to read |
|
|
as follows: |
|
|
(f) In addition, the agreement: |
|
|
(1) must incorporate each relevant provision of this |
|
|
subchapter and, to the extent necessary, include 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 five 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; |
|
|
(6) must specify the ad valorem tax years covered by |
|
|
the agreement; [and] |
|
|
(7) must provide for the recapture of ad valorem tax |
|
|
revenue lost as a result of the agreement if, in the first tax year |
|
|
after the date the limitation on appraised value of the owner's |
|
|
property expires, the market value of the property is less than 80 |
|
|
percent of the market value of the property in the first tax year |
|
|
after the date the qualifying time period expires; and |
|
|
(8) must be in a form approved by the comptroller. |
|
|
SECTION 4. Chapter 313, Tax Code, as amended by this Act, |
|
|
applies only to an application filed under that chapter on or after |
|
|
the effective date of this Act. An application filed under that |
|
|
chapter before the effective date of this Act is governed by the law |
|
|
in effect on the date the application was filed, and the former law |
|
|
is continued in effect for that purpose. |
|
|
SECTION 5. This Act takes effect January 1, 2016. |