Harrison Bill Repeals The 2023 School Tax Limit Program

The text as introduced · 1,290 words

By: Harrison
H.B. No. 5095

A BILL TO BE ENTITLED

AN ACT

relating to the repeal of the Texas Jobs, Energy, Technology, and

Innovation Act.

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

SECTION 1. Subchapter T, Chapter 403, Government Code, as

added by Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular

Session, 2023, is repealed.

SECTION 2. Section 48.2551(a), Education Code, is amended

to read as follows:

(a) In this section:

(1) "DPV" is the taxable value of property in the

school district, as determined by the agency by rule, using locally

determined property values adjusted in accordance with Section

403.302(d), Government Code;

(2) "E" is the expiration of the exclusion of

appraised property value for the preceding tax year that is

recognized as taxable property value for the current tax year,

which is the sum of the following:

(A) property value that is no longer subject to a

limitation on appraised value under former Subchapter B or C,

Chapter 313, Tax Code, or a limitation on taxable value under former

Subchapter T, Chapter 403, Government Code , as added by Chapter 377

(H.B. 5), Acts of the 88th Legislature, Regular Session, 2023 ; and

(B) property value under Section 311.013(n), Tax

Code, that is no longer excluded from the calculation of "DPV" from

the preceding year because of refinancing or renewal after

September 1, 2019;

(3) "MCR" is the district's maximum compressed rate,

which is the tax rate for the current tax year per $100 of valuation

of taxable property at which the district must levy a maintenance

and operations tax to receive the full amount of the tier one

allotment to which the district is entitled under this chapter;

(4) "PYDPV" is the district's value of "DPV" for the

preceding tax year; and

(5) "PYMCR" is the district's value of "MCR" for the

preceding tax year.

SECTION 3. Section 48.256(d), Education Code, is amended to

read as follows:

(d) This subsection applies to a school district in which

the board of trustees entered into a written agreement with a

property owner for the implementation of a limitation on taxable

value under former Subchapter T, Chapter 403, Government Code , as

added by Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular

Session, 2023 . For purposes of determining "DPV" under Subsection

(a) for a school district to which this subsection applies, the

commissioner shall exclude a portion of the market value of

property not otherwise fully taxable by the district under former

Subchapter T, Chapter 403, Government Code , as added by Chapter 377

(H.B. 5), Acts of the 88th Legislature, Regular Session, 2023 . The

comptroller shall provide information to the agency necessary for

this subsection.

SECTION 4. Section 2303.507, Government Code, is amended to

read as follows:

Sec. 2303.507. TAX INCREMENT FINANCING AND ABATEMENT;

LIMITATIONS ON APPRAISED AND TAXABLE VALUE. Designation of an area

as an enterprise zone is also designation of the area as a

reinvestment zone for:

(1) tax increment financing under Chapter 311, Tax

Code;

(2) tax abatement under Chapter 312, Tax Code;

(3) limitations on appraised value under former

Subchapter B or C, Chapter 313, Tax Code; and

(4) limitations on taxable value under former

Subchapter T, Chapter 403, of this code , as added by Chapter 377

(H.B. 5), Acts of the 88th Legislature, Regular Session, 2023 .

SECTION 5. Section 23.03, Tax Code, is amended to read as

follows:

Sec. 23.03. COMPILATION OF LARGE PROPERTIES AND PROPERTIES

SUBJECT TO LIMITATION ON APPRAISED OR TAXABLE VALUE. Each year the

chief appraiser shall compile and send to the Texas Economic

Development and Tourism Office a list of properties in the

appraisal district that in that tax year:

(1) have a market value of $100 million or more;

(2) are subject to a limitation on appraised value

under former Subchapter B or C, Chapter 313; or

(3) are subject to a limitation on taxable value under

former Subchapter T, Chapter 403, Government Code , as added by

Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular

Session, 2023 .

SECTION 6. Section 26.012(6), Tax Code, is amended to read

as follows:

(6) "Current total value" means the total taxable

value of property listed on the appraisal roll for the current year,

including all appraisal roll supplements and corrections as of the

date of the calculation, less the taxable value of property

exempted for the current tax year for the first time under Section

11.31 or 11.315, except that:

(A) the current total value for a school district

excludes:

(i) the total value of homesteads that

qualify for a tax limitation as provided by Section 11.26;

(ii) new property value of property that is

subject to an agreement entered into under former Subchapter B or C,

Chapter 313; and

(iii) new property value of property that

is subject to an agreement entered into under former Subchapter T,

Chapter 403, Government Code , as added by Chapter 377 (H.B. 5), Acts

of the 88th Legislature, Regular Session, 2023 ; and

(B) the current total value for a county,

municipality, or junior college district excludes the total value

of homesteads that qualify for a tax limitation provided by Section

11.261.

SECTION 7. Section 171.602(f), Tax Code, is amended to read

as follows:

(f) The comptroller may not issue a credit under this

section before the later of:

(1) the expiration of an agreement under former

Subchapter B or C, Chapter 313, regarding the clean energy project

for which the credit is issued; or

(2) the expiration of an agreement under former

Subchapter T, Chapter 403, Government Code, as added by Chapter 377

(H.B. 5), Acts of the 88th Legislature, Regular Session, 2023,

regarding the clean energy project for which the credit is issued.

SECTION 8. Section 312.0025(a), Tax Code, is amended to

read as follows:

(a) Notwithstanding any other provision of this chapter to

the contrary, the governing body of a school district, in the manner

required for official action and for purposes of former Subchapter

B or C, Chapter 313, of this code or former Subchapter T, Chapter

403, Government Code, as added by Chapter 377 (H.B. 5), Acts of the

88th Legislature, Regular Session, 2023, may designate an area

entirely within the territory of the school district as a

reinvestment zone if the governing body finds that, as a result of

the designation and the granting of a limitation on appraised value

under former Subchapter B or C, Chapter 313, of this code or the

granting of a limitation on taxable value under former Subchapter

T, Chapter 403, Government Code, as added by Chapter 377 (H.B. 5),

Acts of the 88th Legislature, Regular Session, 2023, for property

located in the reinvestment zone, the designation is reasonably

likely to:

(1) contribute to the expansion of primary employment

in the reinvestment zone; or

(2) attract major investment in the reinvestment zone

that would:

(A) be a benefit to property in the reinvestment

zone and to the school district; and

(B) contribute to the economic development of the

region of this state in which the school district is located.

SECTION 9. An agreement limiting the taxable value of

property entered into under Subchapter T, Chapter 403, Government

Code, as added by Chapter 377 (H.B. 5), Acts of the 88th

Legislature, Regular Session, 2023, before the effective date of

this Act continues in effect according to that subchapter as that

subchapter existed immediately before that date, and that law,

including Sections 403.614, 403.616, and 403.622, Government Code,

as added by Chapter 377 (H.B. 5), Acts of the 88th Legislature,

Regular Session, 2023, is continued in effect for purposes of the

agreement.

SECTION 10. This Act takes effect September 1, 2025.