HB4270 - 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.

  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.