Bill Text: TX HB2722 | 2013-2014 | 83rd Legislature | Introduced

---

Bill Title: Relating to the Texas Economic Development Act.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-03-19 - Referred to Ways & Means [HB2722 Detail]

Download: Texas-2013-HB2722-Introduced.html

---

By: Price H.B. No. 2722

A BILL TO BE ENTITLED
AN ACT
relating to the Texas Economic Development Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 42.2515(a), Education Code, is amended
to read as follows:
(a) For each school year, a school district, including a
school district that is otherwise ineligible for state aid under
this chapter, is entitled to state aid in an amount equal to the
amount of all tax credits credited against ad valorem taxes of the
district in that year under former Subchapter D, Chapter 313, Tax
Code.
SECTION 2. Section 42.302(e), Education Code, is amended to
read as follows:
(e) For purposes of this section, school district taxes for
which credit is granted under former Subchapter D, Chapter 313, Tax
Code, are considered taxes collected by the school district as if
the taxes were paid when the credit for the taxes was granted.
SECTION 3. Section 313.007, Tax Code, is amended to read as
follows:
Sec. 313.007. EXPIRATION. Subchapters B and [,] C[, and D]
expire December 31, 2019 [2014].
SECTION 4. Section 313.024(a), Tax Code, is amended to read
as follows:
(a) This subchapter and Subchapter [Subchapters] C [and D]
apply only to property owned by an entity to which Chapter 171
applies.
SECTION 5. Section 313.026, Tax Code, is amended to read as
follows:
Sec. 313.026. ECONOMIC IMPACT EVALUATION. (a) The
economic impact evaluation of the application must include the
following:
(1) the recommendations of the comptroller;
(2) the name of the school district;
(3) the name of the applicant;
(4) the general nature of the applicant's investment;
(5) the relationship between the applicant's industry
and the types of qualifying jobs to be created by the applicant to
the long-term economic growth plans of this state as described in
the strategic plan for economic development submitted by the Texas
Strategic Economic Development Planning Commission under Section
481.033, Government Code, as that section existed before February
1, 1999;
(6) the relative level of the applicant's investment
per qualifying job to be created by the applicant;
(7) the number of qualifying jobs to be created by the
applicant;
(8) the wages, salaries, and benefits to be offered by
the applicant to qualifying job holders;
(9) the ability of the applicant to locate or relocate
in another state or another region of this state;
(10) the impact the project will have on this state and
individual local units of government, including:
(A) tax and other revenue gains, direct or
indirect, that would be realized during the qualifying time period,
the limitation period, and a period of time after the limitation
period considered appropriate by the comptroller; and
(B) economic effects of the project, including
the impact on jobs and income, during the qualifying time period,
the limitation period, and a period of time after the limitation
period considered appropriate by the comptroller;
(11) the economic condition of the region of the state
at the time the person's application is being considered;
(12) the number of new facilities built or expanded in
the region during the two years preceding the date of the
application that were eligible to apply for a limitation on
appraised value under this subchapter;
(13) the effect of the applicant's proposal, if
approved, on the number or size of the school district's
instructional facilities, as defined by Section 46.001, Education
Code;
(14) the projected market value of the qualified
property of the applicant as determined by the comptroller;
(15) the proposed limitation on appraised value for
the qualified property of the applicant;
(16) the projected dollar amount of the taxes that
would be imposed on the qualified property, for each year of the
agreement, if the property does not receive a limitation on
appraised value with assumptions of the projected appreciation or
depreciation of the investment and projected tax rates clearly
stated;
(17) the projected dollar amount of the taxes that
would be imposed on the qualified property, for each tax year of the
agreement, if the property receives a limitation on appraised value
with assumptions of the projected appreciation or depreciation of
the investment clearly stated;
(18) the projected effect on the Foundation School
Program of payments to the district for each year of the agreement;
and
(19) [the projected future tax credits if the
applicant also applies for school tax credits under Section
313.103; and
[(20)] the total amount of taxes projected to be lost
or gained by the district over the life of the agreement computed by
subtracting the projected taxes stated in Subdivision (17) from the
projected taxes stated in Subdivision (16).
(b) The comptroller's recommendations shall be based on the
criteria listed in Subsections (a)(5)-(19) [(a)(5)-(20)] and on any
other information available to the comptroller, including
information provided by the governing body of the school district
under Section 313.025(b).
SECTION 6. Section 313.0265(b), Tax Code, is amended to
read as follows:
(b) The comptroller shall designate the following as
substantive:
(1) each application requesting a limitation on
appraised value; and
(2) the economic impact evaluation made in connection
with the application[; and
[(3) each application requesting school tax credits
under Section 313.103].
SECTION 7. Sections 313.027(a) and (i), Tax Code, are
amended to read as follows:
(a) If the person's application is approved by the governing
body of the school district, for each of the first nine [eight] tax
years that begin after the applicable qualifying time period, the
appraised value for school district maintenance and operations ad
valorem tax purposes of the person's qualified property as
described in the agreement between the person and the district
entered into under this section in the school district may not
exceed the lesser of:
(1) the market value of the property; or
(2) subject to Subsection (b), the amount agreed to by
the governing body of the school district.
(i) A person and the school district may not enter into an
agreement under which the person agrees to provide supplemental
payments to a school district in an amount that exceeds an amount
equal to $100 per student per year in average daily attendance, as
defined by Section 42.005, Education Code, or for a period that
exceeds the period beginning with the period described by Section
313.021(4) and ending on the third anniversary of the date the
person's eligibility for the limitation under this subchapter or
Subchapter C expires [with the period described by Section
313.104(2)(B) of this code]. This limit does not apply to amounts
described by Subsection (f)(1) or (2) of this section.
SECTION 8. Section 313.031(a), Tax Code, is amended to read
as follows:
(a) The comptroller shall:
(1) adopt rules and forms necessary for the
implementation and administration of this chapter, including rules
for determining whether a property owner's property qualifies as a
qualified investment under Section 313.021(1); and
(2) provide without charge one copy of the rules and
forms to any school district and to any person who states that the
person intends to apply for a limitation on appraised value under
this subchapter [or a tax credit under Subchapter D].
SECTION 9. The heading to Subchapter E, Chapter 313, Tax
Code, is amended to read as follows:
SUBCHAPTER E. LIMITATION ON APPRAISED VALUE [AVAILABILITY OF TAX
CREDIT] AFTER PROGRAM EXPIRES
SECTION 10. Section 313.171(b), Tax Code, is amended to
read as follows:
(b) The repeal [expiration] of Subchapter D does not affect
a property owner's entitlement to a tax credit granted under
Subchapter D if the property owner qualified for the tax credit
before the repeal [expiration] of Subchapter D.
SECTION 11. Subchapter D, Chapter 313, Tax Code, is
repealed.
SECTION 12. This Act applies only to an agreement entered
into on or after the effective date of this Act. An agreement
entered into before the effective date of this Act is governed by
the law in effect on the date the application was filed, and the
former law is continued in effect for that purpose.
SECTION 13. This Act takes effect September 1, 2013.