school districts could abate taxes on homes in reinvestment zones

The text as introduced · 587 words

89R9883 RDS-D

By: Perez of El Paso
H.B. No. 4270

A BILL TO BE ENTITLED

AN ACT

relating to the authority of certain taxing units to enter into an

agreement to abate ad valorem taxes imposed on an individual's

residence homestead that is located in a reinvestment zone.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 312.002(a) and (f), Tax Code, are

amended to read as follows:

(a) A taxing unit may not enter into a tax abatement

agreement under this chapter and the governing body of a

municipality or county may not designate an area as a reinvestment

zone unless the governing body has established guidelines and

criteria governing tax abatement agreements by the taxing unit and

a resolution stating that the taxing unit elects to become eligible

to participate in tax abatement. The guidelines applicable to

property other than property described by Section 312.009(b) or

312.211(a) must provide for the availability of tax abatement for

both new facilities and structures and for the expansion or

modernization of existing facilities and structures.

(f) Except as otherwise provided by this subsection,

on [ On ] or after September 1, 2001, a school district may not enter

into a tax abatement agreement under this chapter. A school

district may enter into a tax abatement agreement under Section

312.009.

SECTION 2. Subchapter A, Chapter 312, Tax Code, is amended

by adding Section 312.009 to read as follows:

Sec. 312.009. RESIDENCE HOMESTEAD TAX ABATEMENT AGREEMENT

BY TAXING UNIT OTHER THAN MUNICIPALITY OR COUNTY. (a) In this

section, "residence homestead" has the meaning assigned by Section

11.13.

(b) This section applies only to a property:

(1) that is located in a reinvestment zone designated

under this chapter by any taxing unit; and

(2) that the property owner occupies as the property

owner's residence homestead for the first time not earlier than one

year before the date the property owner enters into a tax abatement

agreement under this section.

(c) Notwithstanding any other provision of this chapter, a

taxing unit other than a municipality or county that is eligible to

enter into a tax abatement agreement under Section 312.002 or a

school district that meets the eligibility requirements of that

section for a taxing unit may enter into a tax abatement agreement

with the owner of a property to which this section applies to exempt

from taxation all or a portion of the value of the property:

(1) for a period not to exceed 10 years; and

(2) on the condition that the owner of the property

spend an amount specified in the agreement, that may not be less

than $500, to make improvements or repairs to the property during

the first year of the agreement.

(d) An agreement made under this section must:

(1) provide access to and authorize inspection of the

property by the taxing unit to ensure that the improvements or

repairs are made as provided by the agreement;

(2) provide for recapturing property tax revenue lost

as a result of the agreement if the owner of the property fails to

make the improvements or repairs as provided by the agreement; and

(3) provide that the governing body of the taxing unit

may cancel or modify the agreement if the property owner fails to

comply with the agreement.

(e) The expiration of the designation of a reinvestment zone

under this chapter does not affect an existing tax abatement

agreement entered into under this section.

SECTION 3. This Act takes effect September 1, 2025.