S.B. No. 1458
 
 
 
 
AN ACT
  relating to the authority of certain taxing units to enter into an
  ad valorem tax abatement agreement.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 312.006, Tax Code, as amended by
  Chapters 1029 (H.B. 1449) and 1505 (H.B. 1200), Acts of the 77th
  Legislature, Regular Session, 2001, is reenacted and amended to
  read as follows:
         Sec. 312.006.  EXPIRATION DATE. If not continued in effect,
  this chapter expires September 1, 2019 [2009].
         SECTION 2.  Subchapter A, Chapter 312, Tax Code, is amended
  by adding Section 312.007 to read as follows:
         Sec. 312.007.  DEFERRAL OF COMMENCEMENT OF ABATEMENT PERIOD.
  (a)  In this section, "abatement period" means the period during
  which all or a portion of the value of real property or tangible
  personal property that is the subject of a tax abatement agreement
  is exempt from taxation.
         (b)  Notwithstanding any other provision of this chapter,
  the governing body of the taxing unit granting the abatement and the
  owner of the property that is the subject of the agreement may agree
  to defer the commencement of the abatement period until a date that
  is subsequent to the date the agreement is entered into, except that
  the duration of an abatement period may not exceed 10 years.
         SECTION 3.  Section 312.402, Tax Code, is amended by
  amending Subsection (a) and adding Subsections (a-1), (a-2), and
  (a-3) to read as follows:
         (a)  The commissioners court may execute a tax abatement
  agreement with the owner of taxable real property located in a
  reinvestment zone designated under this subchapter or with the
  owner of tangible personal property located on real property in a
  reinvestment zone to exempt from taxation all or a portion of the
  value of the real property, all or a portion of the value of the
  tangible personal property located on the real property, or all or a
  portion of the value of both[. The court may execute a tax
  abatement agreement with the owner of a leasehold interest in
  tax-exempt real property or leasehold interests or improvements on
  tax-exempt real property that is located in a reinvestment zone
  designated under this subchapter to exempt a portion of the value of
  tangible personal property or leasehold interests or improvements
  on tax-exempt real property located on the real property. The
  execution, duration, and other terms of an agreement made under
  this section are governed by the provisions of Sections 312.204,
  312.205, and 312.211 applicable to a municipality. Section
  312.2041 applies to an agreement made by a county under this section
  in the same manner as it applies to an agreement made by a
  municipality under Section 312.204 or 312.211].
         (a-1)  The commissioners court may execute a tax abatement
  agreement with the owner of a leasehold interest in tax-exempt real
  property located in a reinvestment zone designated under this
  subchapter to exempt all or a portion of the value of the leasehold
  interest in the real property. The court may execute a tax
  abatement agreement with the owner of tangible personal property or
  an improvement located on tax-exempt real property that is located
  in a designated reinvestment zone to exempt all or a portion of the
  value of the tangible personal property or improvement located on
  the real property.
         (a-2)  The execution, duration, and other terms of an
  agreement entered into under this section are governed by the
  provisions of Sections 312.204, 312.205, and 312.211 applicable to
  a municipality. Section 312.2041 applies to an agreement entered
  into under this section in the same manner as that section applies
  to an agreement entered into under Section 312.204 or 312.211.
         (a-3)  The commissioners court may execute a tax abatement
  agreement with a lessee of taxable real property located in a
  reinvestment zone designated under this subchapter to exempt from
  taxation all or a portion of the value of the fixtures,
  improvements, or other real property owned by the lessee and
  located on the property that is subject to the lease, all or a
  portion of the value of tangible personal property owned by the
  lessee and located on the real property that is the subject of the
  lease, or all or a portion of the value of both the fixtures,
  improvements, or other real property and the tangible personal
  property described by this subsection.
         SECTION 4.  Section 312.007, Tax Code, as added by this Act,
  is intended to clarify rather than change existing law.
         SECTION 5.  An ad valorem tax abatement agreement that was
  executed before the effective date of this Act by the commissioners
  court of a county and an owner of taxable real property or tangible
  personal property or an owner of a leasehold interest in tax-exempt
  real property, under Section 312.402, Tax Code, as that section
  existed before the effective date of this Act, that provides for an
  exemption from taxation of all or a portion of the value of real
  property, tangible personal property, or both, or of all or a
  portion of the value of a leasehold interest in tax-exempt real
  property, that is not invalid for a reason other than an
  inconsistency with Section 312.402, Tax Code, as that section
  existed before the effective date of this Act, and that is
  consistent with Section 312.402, Tax Code, as amended by this Act,
  is ratified and validated as of the date the agreement was executed.
         SECTION 6.  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, 2009.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1458 passed the Senate on
  April 16, 2009, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 30, 2009, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1458 passed the House, with
  amendment, on May 27, 2009, by the following vote: Yeas 148,
  Nays 0, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor