Bill Text: TX SB1096 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the treatment of certain residence homesteads for purposes of the Tax Increment Financing Act.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-09 - Referred to Natural Resources & Economic Development [SB1096 Detail]
Download: Texas-2023-SB1096-Introduced.html
88R6390 CJC-F | ||
By: Parker | S.B. No. 1096 |
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relating to the treatment of certain residence homesteads for | ||
purposes of the Tax Increment Financing Act. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 311.002(1), Tax Code, is amended to read | ||
as follows: | ||
(1) "Project costs" means the expenditures made or | ||
estimated to be made and monetary obligations incurred or estimated | ||
to be incurred by the municipality or county designating a | ||
reinvestment zone that are listed in the project plan as costs of | ||
public works, public improvements, programs, or other projects | ||
benefiting the zone, plus other costs incidental to those | ||
expenditures and obligations. "Project costs" include: | ||
(A) capital costs, including the actual costs of | ||
the acquisition and construction of public works, public | ||
improvements, new buildings, structures, and fixtures; the actual | ||
costs of the acquisition, demolition, alteration, remodeling, | ||
repair, or reconstruction of existing buildings, structures, and | ||
fixtures; the actual costs of the remediation of conditions that | ||
contaminate public or private land or buildings; the actual costs | ||
of the preservation of the facade of a public or private building; | ||
the actual costs of the demolition of public or private buildings; | ||
and the actual costs of the acquisition of land and equipment and | ||
the clearing and grading of land; | ||
(B) financing costs, including all interest paid | ||
to holders of evidences of indebtedness or other obligations issued | ||
to pay for project costs and any premium paid over the principal | ||
amount of the obligations because of the redemption of the | ||
obligations before maturity; | ||
(C) real property assembly costs; | ||
(D) professional service costs, including those | ||
incurred for architectural, planning, engineering, and legal | ||
advice and services; | ||
(E) imputed administrative costs, including | ||
reasonable charges for the time spent by employees of the | ||
municipality or county in connection with the implementation of a | ||
project plan; | ||
(F) relocation costs; | ||
(G) organizational costs, including the costs of | ||
conducting environmental impact studies or other studies, the cost | ||
of publicizing the creation of the zone, and the cost of | ||
implementing the project plan for the zone; | ||
(H) interest before and during construction and | ||
for one year after completion of construction, whether or not | ||
capitalized; | ||
(I) the cost of operating the reinvestment zone | ||
and project facilities; | ||
(J) the amount of any contributions made by the | ||
municipality or county from general revenue for the implementation | ||
of the project plan; | ||
(K) the costs of school buildings, other | ||
educational buildings, other educational facilities, or other | ||
buildings owned by or on behalf of a school district, community | ||
college district, or other political subdivision of this state; | ||
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(L) payments made at the discretion of the | ||
governing body of the municipality or county that the governing | ||
body finds necessary or convenient to the creation of the zone or to | ||
the implementation of the project plans for the zone; and | ||
(M) payments made as part of a reinvestment zone | ||
stability program established under Section 311.0111. | ||
SECTION 2. Section 311.006(a), Tax Code, is amended to read | ||
as follows: | ||
(a) A municipality may not designate a reinvestment zone if: | ||
(1) more than 40 [ |
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proposed zone[ |
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for residential purposes, excluding property that is: | ||
(A) publicly owned; or | ||
(B) a residence homestead owned by a legacy | ||
homeowner, as those terms are defined by Section 311.0111; or | ||
(2) the total appraised value of taxable real property | ||
in the proposed zone and in existing reinvestment zones exceeds: | ||
(A) 25 percent of the total appraised value of | ||
taxable real property in the municipality and in the industrial | ||
districts created by the municipality, if the municipality has a | ||
population of 100,000 or more; or | ||
(B) 50 percent of the total appraised value of | ||
taxable real property in the municipality and in the industrial | ||
districts created by the municipality, if the municipality has a | ||
population of less than 100,000. | ||
SECTION 3. Chapter 311, Tax Code, is amended by adding | ||
Section 311.0111 to read as follows: | ||
Sec. 311.0111. REINVESTMENT ZONE STABILITY PROGRAM. (a) | ||
In this section: | ||
(1) "Legacy homeowner" means the owner of a residence | ||
homestead located in a reinvestment zone who has continuously | ||
resided in and received an exemption under Section 11.13 for the | ||
homestead for at least seven years preceding the date the governing | ||
body of the county or municipality designated the zone in which the | ||
homestead is located. | ||
(2) "Program" means a reinvestment zone stability | ||
program established under this section. | ||
(3) "Residence homestead" has the meaning assigned by | ||
Section 11.13. | ||
(b) The project plan prepared and adopted by the board of | ||
directors of a reinvestment zone under Section 311.011 may | ||
authorize the board of directors to establish a reinvestment zone | ||
stability program, the purpose of which is to ensure that all | ||
residents of the zone benefit from its designation. The governing | ||
body of the county or municipality that designated the zone and any | ||
affiliated community organizations may participate in the | ||
development of the program. As part of a program established under | ||
this section, the board may dedicate, pledge, or otherwise provide | ||
for the use of money in the tax increment fund established for the | ||
zone to prevent homeowner displacement by providing annual payments | ||
on behalf of legacy homeowners to offset the increase in ad valorem | ||
taxes imposed on the residence homesteads of those homeowners that | ||
is attributable to the increase in property values associated with | ||
the development or redevelopment of property in the zone. | ||
(c) If the project plan for a reinvestment zone authorizes | ||
annual payments on behalf of legacy homeowners, the plan must | ||
provide that: | ||
(1) the amount of an annual payment made under the | ||
program to a legacy homeowner may not exceed the amount determined | ||
for that homeowner under Subsection (d); and | ||
(2) the period of time for which annual payments may be | ||
made on behalf of a legacy homeowner may not exceed 10 years. | ||
(d) The maximum amount of an annual payment that may be made | ||
on behalf of a legacy homeowner for a tax year is equal to the | ||
positive difference, if any, between the following amounts: | ||
(1) the ad valorem taxes due on the homeowner's | ||
homestead for that tax year; and | ||
(2) the ad valorem taxes due on the homeowner's | ||
homestead for the tax year in which the reinvestment zone in which | ||
the homestead is located was designated. | ||
SECTION 4. This Act takes effect September 1, 2023. |