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AN ACT
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relating to the Tax Increment Financing Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 311.003(a), Tax Code, is amended to read |
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as follows: |
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(a) The governing body of a county by order may designate a |
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contiguous geographic area in the county and the governing body of a |
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municipality by ordinance [or the governing body of a county by
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order] may designate a contiguous or noncontiguous geographic area |
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that is in the corporate limits of the municipality, in the |
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extraterritorial jurisdiction of the municipality, or in both [in
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the jurisdiction of the municipality or county] to be a |
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reinvestment zone to promote development or redevelopment of the |
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area if the governing body determines that development or |
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redevelopment would not occur solely through private investment in |
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the reasonably foreseeable future. The designation of an area that |
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is wholly or partly located in the extraterritorial jurisdiction of |
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a municipality is not affected by a subsequent annexation of real |
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property in the reinvestment zone by the municipality. |
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SECTION 2. Section 311.006(a), Tax Code, is amended to read |
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as follows: |
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(a) A municipality may not create a reinvestment zone if: |
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(1) more than 10 percent of the property in the |
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proposed zone, excluding property that is publicly owned, is used |
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for residential purposes; or |
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(2) the total appraised value of taxable real property |
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in the proposed zone and in existing reinvestment zones exceeds: |
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(A) 20 percent of the total appraised value of |
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taxable real property in the municipality and in the industrial |
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districts created by the municipality, if the municipality is the |
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county seat of a county: |
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(i) that is adjacent to a county with a |
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population of 3.3 million or more; and |
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(ii) in which a planned community is |
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located that has 20,000 or more acres of land, that was originally |
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established under the Urban Growth and New Community Development |
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Act of 1970 (42 U.S.C. Section 4501 et seq.), and that is subject to |
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restrictive covenants containing ad valorem or annual variable |
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budget-based assessments on real property; or |
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(B) 15 percent of the total appraised value of |
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taxable real property in the municipality and in the industrial |
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districts created by the municipality, if Paragraph (A) does not |
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apply to the municipality. |
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SECTION 3. Section 311.012(a), Tax Code, is amended to read |
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as follows: |
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(a) The amount of a taxing unit's tax increment for a year is |
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the amount of property taxes levied and assessed by the unit for |
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that year on the captured appraised value of real property taxable |
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by the unit and located in a reinvestment zone or the amount of |
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property taxes levied and collected by the unit for that year on the |
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captured appraised value of real property taxable by the unit and |
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located in a reinvestment zone. The governing body of a taxing unit |
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shall determine which of the methods specified by this subsection |
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is used to calculate the amount of the unit's tax increment. |
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SECTION 4. Sections 311.013(c) and (i), Tax Code, are |
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amended to read as follows: |
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(c) Notwithstanding any termination of the reinvestment |
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zone under Section 311.017(a), a [A] taxing unit shall make a |
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payment required by Subsection (b) not later than the 90th day after |
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the delinquency date for the unit's property taxes. A delinquent |
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payment incurs a penalty of five percent of the amount delinquent |
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and accrues interest at an annual rate of 10 percent. |
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(i) Notwithstanding Subsection (c) and Section 311.012(a), |
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a taxing unit is not required to pay into a tax increment fund the |
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applicable portion of a tax increment attributable to delinquent |
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taxes until those taxes are collected. |
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SECTION 5. Section 311.017, Tax Code, is amended by amending |
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Subsection (a) and adding Subsection (a-1) to read as follows: |
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(a) A reinvestment zone terminates on the earlier of: |
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(1) the termination date designated in the ordinance |
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or order, as applicable, creating the zone or an earlier or later |
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termination date designated by an ordinance or order adopted |
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subsequent to the ordinance or order creating the zone; or |
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(2) the date on which all project costs, tax increment |
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bonds and interest on those bonds, and other obligations have been |
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paid in full. |
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(a-1) Notwithstanding the designation of a later |
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termination date under Subsection (a), a taxing unit that taxes |
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real property located in the reinvestment zone, other than the |
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municipality or county that created the zone, is not required to pay |
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any of its tax increment into the tax increment fund for the zone |
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after the termination date designated in the ordinance or order |
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creating the zone unless the governing body of the taxing unit |
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enters into an agreement to do so with the governing body of the |
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municipality or county that created the zone. |
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SECTION 6. Section 311.006(a), Tax Code, as amended by this |
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Act, applies only to a reinvestment zone created on or after the |
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effective date of this Act. The creation of a reinvestment zone |
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before the effective date of this Act is covered by the law in |
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effect immediately before the effective date of this Act, and the |
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former law is continued in effect for that purpose. |
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SECTION 7. (a) The legislature validates and confirms all |
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governmental acts and proceedings of a municipality or county that |
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were taken before the effective date of this Act and relate to or |
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are associated with the extension of the term of a reinvestment zone |
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created by the municipality or county under Chapter 311, Tax Code, |
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as of the dates on which they occurred. The acts and proceedings |
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may not be held invalid because they were not in accordance with |
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Chapter 311, Tax Code, or other law. |
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(b) Subsection (a) of this section does not apply to any |
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matter that on the effective date of this Act: |
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(1) is involved in litigation if the litigation |
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ultimately results in the matter being held invalid by a final |
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judgment of a court; or |
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(2) has been held invalid by a final judgment of a |
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court. |
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SECTION 8. This Act applies only to a taxing unit's tax |
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increment for a period occurring on or after the effective date of |
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this Act. A taxing unit's tax increment for a period occurring |
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before the effective date of this Act is governed by the law in |
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effect for such period, and the former law is continued in effect |
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for that purpose. |
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SECTION 9. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1770 was passed by the House on April |
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28, 2009, by the following vote: Yeas 148, Nays 1, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 1770 on May 29, 2009, by the following vote: Yeas 123, Nays 16, |
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1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1770 was passed by the Senate, with |
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amendments, on May 25, 2009, by the following vote: Yeas 30, Nays |
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1. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |