LegalTips.ORG - Texas TAX CODE

§ 313.002. FINDINGS. The legislature finds that:
(1) many states have enacted aggressive economic
development laws designed to attract large employers, create jobs,
and strengthen their economies;
(2) the State of Texas has slipped in its national
ranking each year between 1993 and 2000 in terms of attracting major
new manufacturing facilities to this state;
(3) a significant portion of the Texas economy
continues to be based in the manufacturing industry, and the
continued growth and overall health of the manufacturing sector
serves the Texas economy well;
(4) without a vibrant, strong manufacturing sector,
other sectors of the economy, especially the state's service
sector, will also suffer adverse consequences; and
(5) the current property tax system of this state does
not favor capital-intensive businesses such as manufacturers.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.003. PURPOSES. The purposes of this chapter are
to:
(1) encourage large-scale capital investments in this
state, especially in school districts that have an ad valorem tax
base that is less than the statewide average ad valorem tax base of
school districts in this state;
(2) create new, high-paying jobs in this state;
(3) attract to this state new, large-scale businesses
that are exploring opportunities to locate in other states or other
countries;
(4) enable local government officials and economic
development professionals to compete with other states by
authorizing economic development incentives that meet or exceed
incentives being offered to prospective employers by other states
and to provide local officials with an effective means to attract
large-scale investment;
(5) strengthen and improve the overall performance of
the economy of this state;
(6) expand and enlarge the ad valorem property tax
base of this state; and
(7) enhance this state's economic development efforts
by providing school districts with an effective local economic
development option.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.004. LEGISLATIVE INTENT. It is the intent of the
legislature in enacting this chapter that:
(1) economic development decisions should occur at the
local level and be consistent with identifiable statewide economic
development goals;
(2) this chapter should not be construed or
interpreted to allow:
(A) property owners to pool investments to create
sufficiently large investments to qualify for an ad valorem tax
benefit or financial benefit provided by this chapter;
(B) an applicant for an ad valorem tax benefit or
financial benefit provided by this chapter to assert that jobs will
be eliminated if certain investments are not made if the assertion
is not true; or
(C) a sole proprietorship, partnership, or
limited liability partnership to receive an ad valorem tax benefit
or financial benefit provided by this chapter; and
(3) in implementing this chapter, school districts
should:
(A) strictly interpret the criteria and
selection guidelines provided by this chapter; and
(B) approve only those applications for an ad
valorem tax benefit or financial benefit provided by this chapter
that:
(i) enhance the local community;
(ii) improve the local public education
system;
(iii) create high-paying jobs; and
(iv) advance the economic development goals
of this state as identified by the Texas Strategic Economic
Development Planning Commission.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.005. DEFINITIONS. Unless this chapter defines a
word or phrase used in this chapter, Section 1.04 or any other
section of Title 1 or this title that defines the word or phrase or
ascribes a meaning to the word or phrase applies to the word or
phrase used in this chapter.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.006. IMPOSITION OF IMPACT FEE. (a) In this
section, "impact fee" means a charge or assessment imposed against
a qualified property, as defined by Section 313.021, in order to
generate revenue for funding or recouping the costs of capital
improvements or facility expansions for water, wastewater, or storm
water services or for roads necessitated by or attributable to
property that receives a limitation on appraised value under this
chapter.
(b) Notwithstanding any other law, including Chapter 395,
Local Government Code, a municipality or county may impose and
collect from the owner of a qualified property a reasonable impact
fee under this section to pay for the cost of providing improvements
associated with or attributable to property that receives a
limitation on appraised value under this chapter.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.007. EXPIRATION. Subchapters B, C, and D expire
December 31, 2007.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

SUBCHAPTER B. LIMITATION ON APPRAISED VALUE OF CERTAIN PROPERTY
USED TO CREATE JOBS

§ 313.021. DEFINITIONS.

Text of section effective until December 31, 2007
In this subchapter:
(1) "Qualified investment" means:
(A) tangible personal property that is first
placed in service in this state during the applicable qualifying
time period that begins on or after January 1, 2002, and is
described as Section 1245 property by Section 1245(a), Internal
Revenue Code of 1986;
(B) tangible personal property that is first
placed in service in this state during the applicable qualifying
time period that begins on or after January 1, 2002, without regard
to whether the property is affixed to or incorporated into real
property, and that is used in connection with the manufacturing,
processing, or fabrication in a cleanroom environment of a
semiconductor product, without regard to whether the property is
actually located in the cleanroom environment, including:
(i) integrated systems, fixtures, and
piping;
(ii) all property necessary or adapted to
reduce contamination or to control airflow, temperature, humidity,
chemical purity, or other environmental conditions or
manufacturing tolerances; and
(iii) production equipment and machinery,
moveable cleanroom partitions, and cleanroom lighting; or
(C) a building or a permanent, nonremovable
component of a building that is built or constructed during the
applicable qualifying time period that begins on or after January
1, 2002, and that houses tangible personal property described by
Paragraph (A) or (B).
(2) "Qualified property" means:
(A) land:
(i) that is located in an area designated as
a reinvestment zone under Chapter 311 or 312 or as an enterprise
zone under Chapter 2303, Government Code;
(ii) on which a person proposes to
construct a new building or erect or affix a new improvement that
does not exist before the date the owner applies for a limitation on
appraised value under this subchapter;
(iii) that is not subject to a tax abatement
agreement entered into by a school district under Chapter 312; and
(iv) on which, in connection with the new
building or new improvement described by Subparagraph (ii), the
owner of the land proposes to:
(a) make a qualified investment in an
amount equal to at least the minimum amount required by Section
313.023; and
(b) create at least 25 new jobs;
(B) the new building or other new improvement
described by Paragraph (A)(ii); and
(C) tangible personal property that:
(i) is not subject to a tax abatement
agreement entered into by a school district under Chapter 312; and
(ii) except for new equipment described in
Section 151.318(q) or (q-1), is first placed in service in the new
building or in or on the new improvement described by Paragraph
(A)(ii), or on the land on which that new building or new
improvement is located, if the personal property is ancillary and
necessary to the business conducted in that new building or in or on
that new improvement.
(3) "Qualifying job" means a permanent full-time job
that:
(A) requires at least 1,600 hours of work a year;
(B) is not transferred from one area in this
state to another area in this state;
(C) is not created to replace a previous
employee;
(D) is covered by a group health benefit plan, as
defined by Section 481.151, Government Code, for which the business
offers to pay at least 80 percent of the premiums or other charges
assessed for employee-only coverage under the plan, regardless of
whether an employee may voluntarily waive the coverage; and
(E) pays at least 110 percent of the county
average weekly wage for manufacturing jobs in the county where the
job is located.
(4) "Qualifying time period" means the first two tax
years that begin on or after the date a person's application for a
limitation on appraised value under this subchapter is approved.
(5) "County average weekly wage for manufacturing
jobs" means the average weekly wage in a county for manufacturing
jobs as computed by the Texas Workforce Commission.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.
Amended by Acts 2003, 78th Leg., ch. 1310, § 113, eff. June 20,
2003.

§ 313.022. APPLICABILITY; CATEGORIZATION OF SCHOOL
DISTRICTS.

Text of section effective until December 31, 2007
(a) This subchapter applies to each school district in this
state other than a school district to which Subchapter C applies.
(b) For purposes of determining the required minimum amount
of a qualified investment under Section 313.021(2)(A)(iv)(a), and
the minimum amount of a limitation on appraised value under Section
313.027(b), school districts to which this subchapter applies are
categorized according to the taxable value of property in the
district for the preceding tax year determined under Subchapter M,
Chapter 403, Government Code, as follows: CATEGORY TAXABLE VALUE OF PROPERTY
I $10 billion or more
II $1 billion or more but less than $10
billion
III $500 million or more but less than $1
billion
IV $100 million or more but less than $500
million
V less than $100 million

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.023. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT.

Text of section effective until December 31, 2007
For each category of school district established by Section
313.022, the minimum amount of a qualified investment under Section
313.021(2)(A)(iv)(a) is as follows: CATEGORY MINIMUM QUALIFIED INVESTMENT
I __________ $100 million
II __________ $80 million
III __________ $60 million
IV __________ $40 million
V __________ $20 million

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.024. ELIGIBLE PROPERTY.

Text of section effective until December 31, 2007
(a) This subchapter and Subchapters C and D apply only to
property owned by a corporation or limited liability company to
which Section 171.001 applies.
(b) To be eligible for a limitation on appraised value under
this subchapter, the corporation or limited liability company must
use the property in connection with:
(1) manufacturing;
(2) research and development; or
(3) renewable energy electric generation.
(c) For purposes of determining an applicant's eligibility
for a limitation under this subchapter:
(1) the land on which a building or component of a
building described by Section 313.021(1)(C) is located is not
considered a qualified investment;
(2) property that is leased under a capitalized lease
may be considered a qualified investment;
(3) property that is leased under an operating lease
may not be considered a qualified investment; and
(4) property that is owned by a person other than the
applicant and that is pooled or proposed to be pooled with property
owned by the applicant may not be included in determining the amount
of the applicant's qualifying investment.
(d) To be eligible for a limitation on appraised value under
this subchapter, at least 80 percent of all the new jobs created by
the property owner must be qualifying jobs as defined by Section
313.021(3).
(e) In this section:
(1) "Manufacturing" and "research and development"
have the meanings assigned by Section 171.751.
(2) "Renewable energy electric generation" means an
establishment primarily engaged in activities described in
category 221119 of the 1997 North American Industry Classification
System.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.025. APPLICATION; ACTION ON APPLICATION.

Text of section effective until December 31, 2007
(a) The owner of qualified property may apply to the
governing body of the school district in which the property is
located for a limitation on the appraised value for school district
maintenance and operations ad valorem tax purposes of the person's
qualified property. An application must be made on the form
prescribed by the comptroller and include the information required
by the comptroller, and it must be accompanied by:
(1) the application fee established by the governing
body of the school district;
(2) information sufficient to show that the real and
personal property identified in the application as qualified
property meets the applicable criteria established by Section
313.021(2); and
(3) information relating to each applicable criterion
listed in Section 313.026.
(b) The governing body of a school district is not required
to consider an application for a limitation on appraised value that
is filed with the governing body under Subsection (a). If the
governing body of the school district does elect to consider an
application, the governing body shall engage a third person to
conduct an economic impact evaluation of the application on behalf
of the school district and approve or disapprove an application
before the 121st day after the date the application is filed, unless
an extension is agreed to by the governing body and the applicant.
(c) In determining whether to grant an application, the
governing body of the school district is entitled to request and
receive assistance from:
(1) the comptroller;
(2) the Texas Department of Economic Development;
(3) the Texas Workforce Investment Council; and
(4) the Texas Workforce Commission.
(d) On receipt of an application under this section that the
governing body elects to consider, the school district shall
deliver one copy of the application to the comptroller. Before the
61st day after the date the copy of the application is received, the
comptroller, using the criteria listed in Section 313.026, shall
submit a recommendation to the governing body of the school
district as to whether the application should be approved or
disapproved.
(e) Before approving or disapproving an application under
this subchapter that the governing body elects to consider, the
governing body of the school district must make a written finding as
to each criterion listed in Section 313.026. The governing body
shall deliver a copy of those findings to the applicant.
(f) The governing body may approve an application only if
the governing body finds that the information in the application is
true and correct, finds that the applicant is eligible for the
limitation on the appraised value of the person's qualified
property, and determines that granting the application is in the
best interest of the school district and this state.
(g) The Texas Department of Economic Development or its
successor may recommend that a school district grant a person a
limitation on appraised value under this chapter. In determining
whether to grant an application, the governing body of the school
district shall consider any recommendation made by the Texas
Department of Economic Development or its successor.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.
Amended by Acts 2003, 78th Leg., ch. 818, § 6.11, eff. Sept. 1,
2003; Acts 2003, 78th Leg., ch. 978, § 7, eff. Sept. 1, 2003.

§ 313.026. ECONOMIC IMPACT EVALUATION.

Text of section effective until December 31, 2007
The economic impact evaluation of the application must
include the following:
(1) the recommendations of the comptroller;
(2) 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;
(3) the relative level of the applicant's investment
per qualifying job to be created by the applicant;
(4) the wages, salaries, and benefits to be offered by
the applicant to qualifying job holders;
(5) the ability of the applicant to locate or relocate
in another state or another region of this state;
(6) the impact the added infrastructure will have on
the region, including:
(A) revenue gains that would be realized by the
school district; and
(B) subsequent economic effects on the local and
regional tax bases;
(7) the economic condition of the region of the state
at the time the person's application is being considered;
(8) 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; and
(9) 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.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.027. LIMITATION ON APPRAISED VALUE; AGREEMENT.

Text of section effective until December 31, 2007
(a) If the person's application is approved by the governing
body of the school district, for each of the first 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.
(b) The amount agreed to by the governing body of a school
district under Subsection (a)(2) must be an amount in accordance
with the following, according to the category established by
Section 313.022 to which the school district belongs: CATEGORY MINIMUM AMOUNT OF LIMITATION
I __________ $100 million
II __________ $80 million
III __________ $60 million
IV __________ $40 million
V __________ $20 million

(c) The limitation amounts listed in Subsection (b) are
minimum amounts. A school district, regardless of category, may
agree to a greater amount than those amounts.
(d) The governing body of the school district and the
property owner shall enter into a written agreement for the
implementation of the limitation on appraised value under this
subchapter on the owner's qualified property.
(e) The agreement must describe with specificity the
qualified investment that the person will make on or in connection
with the person's qualified property that is subject to the
limitation on appraised value under this subchapter. Other
property of the person that is not specifically described in the
agreement is not subject to the limitation unless the governing
body of the school district, by official action, provides that the
other property is subject to the limitation.
(f) In addition, the agreement:
(1) must incorporate each relevant provision of this
subchapter and, to the extent necessary, include provisions for the
protection of future school district revenues through the
adjustment of the minimum valuations, the payment of revenue
offsets, and other mechanisms agreed to by the property owner and
the school district;
(2) must require the property owner to maintain a
viable presence in the school district for at least three years
after the date the limitation on appraised value of the owner's
property expires;
(3) must provide for the termination of the agreement,
the recapture of ad valorem tax revenue lost as a result of the
agreement if the owner of the property fails to comply with the
terms of the agreement, and payment of a penalty or interest, or
both, on that recaptured ad valorem tax revenue;
(4) may specify any conditions the occurrence of which
will require the district and the property owner to renegotiate all
or any part of the agreement; and
(5) must specify the ad valorem tax years covered by
the agreement.
(g) When appraising a person's qualified property subject
to a limitation on appraised value under this section, the chief
appraiser shall determine the market value of the property and
include both the market value and the appropriate value under
Subsection (a) in the appraisal records.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.028. CERTAIN BUSINESS INFORMATION CONFIDENTIAL.

Text of section effective until December 31, 2007
Information provided to a school district in connection with
an application for a limitation on appraised value under this
subchapter that describes the specific processes or business
activities to be conducted or the specific tangible personal
property to be located on real property covered by the application
is confidential and not subject to public disclosure unless the
governing body of the school district approves the application.
Information in the custody of a school district if the governing
body approves the application is not confidential under this
section.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.029. TAX RATE LIMITATION.

Text of section effective until December 31, 2007
If the governing body of a school district grants an
application for a limitation on appraised value under this
subchapter, for each of the first two tax years that begins after
the date the application is approved, the governing body of the
school district may not adopt a tax rate that exceeds the school
district's rollback tax rate under Section 26.08 for that year. If,
in any tax year in which a restriction on the school district's tax
rate under this section is in effect, the governing body approves a
subsequent application for a limitation on appraised value under
this section, the restriction on the school district's tax rate is
extended until the first tax year that begins after the second
anniversary of the date the subsequent application is approved.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.030. PROPERTY NOT ELIGIBLE FOR TAX ABATEMENT.

Text of section effective until December 31, 2007
Property subject to a limitation on appraised value in a tax
year under this subchapter is not eligible for tax abatement by a
school district under Chapter 312 in that tax year.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.031. RULES AND FORMS; FEES.

Text of section effective until December 31, 2007
(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.
(b) The governing body of a school district by official
action shall establish reasonable nonrefundable application fees
to be paid by property owners who apply to the district for a
limitation on the appraised value of the person's property under
this subchapter. The amount of an application fee must be
reasonable and may not exceed the estimated cost to the district of
processing and acting on an application, including the cost of the
economic impact evaluation required by Sections 313.025 and
313.026.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

SUBCHAPTER C. LIMITATION ON APPRAISED VALUE OF PROPERTY IN CERTAIN
RURAL SCHOOL DISTRICTS

§ 313.051. APPLICABILITY.

Text of section effective until December 31, 2007
(a) This subchapter applies only to a school district that
has territory in a strategic investment area, as defined by Section
171.721, Tax Code, or in a county:
(1) that has a population of less than 50,000;
(2) that is not partially or wholly located in a
metropolitan statistical area; and
(3) in which, from 1990 to 2000, according to the
federal decennial census, the population:
(A) remained the same;
(B) decreased; or
(C) increased, but at a rate of not more than
three percent per annum.
(b) The governing body of a school district to which this
subchapter applies may enter into an agreement in the same manner as
a school district to which Subchapter B applies may do so under
Subchapter B, subject to Sections 313.052-313.054. Except as
otherwise provided by this subchapter, the provisions of Subchapter
B apply to a school district to which this subchapter applies. For
purposes of this subchapter, a property owner is required to create
only at least 10 new jobs on the owner's qualified property. At
least 80 percent of all the new jobs created must be qualifying jobs
as defined by Section 313.021(3).

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.052. CATEGORIZATION OF SCHOOL DISTRICTS.

Text of section effective until December 31, 2007
For purposes of determining the required minimum amount of a
qualified investment under Section 313.021(2)(A)(iv)(a) and the
minimum amount of a limitation on appraised value under this
subchapter, school districts to which this subchapter applies are
categorized according to the taxable value of industrial property
in the district for the preceding tax year determined under
Subchapter M, Chapter 403, Government Code, as follows: CATEGORY TAXABLE VALUE OF INDUSTRIAL
PROPERTY
I $200 million or more
II $90 million or more but less
than $200 million
III $1 million or more but less
than $90 million
IV $100,000 or more but less than
$1 million
V less than $100,000

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.053. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT.

Text of section effective until December 31, 2007
For each category of school district established by Section
313.052, the minimum amount of a qualified investment under Section
313.021(2)(A)(iv)(a) is as follows: CATEGORY MINIMUM QUALIFIED INVESTMENT
I _____________$30 million
II _____________$20 million
III _____________$10million
IV _____________$5million
V _____________$1million

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.054. LIMITATION ON APPRAISED VALUE.

Text of section effective until December 31, 2007
(a) For a school district to which this subchapter applies,
the amount agreed to by the governing body of the district under
Section 313.027(a)(2) must be an amount in accordance with the
following, according to the category established by Section 313.052
to which the school district belongs: CATEGORY MINIMUM AMOUNT OF LIMITATION
I _____________$30 million
II _____________$20 million
III _____________$10million
IV _____________$5million
V _____________$1million

(b) The limitation amounts listed in Subsection (a) are
minimum amounts. A school district, regardless of category, may
agree to a greater amount than those amounts.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

SUBCHAPTER D. SCHOOL TAX CREDITS

§ 313.101. DEFINITION.

Text of sections effective until December 31, 2007
In this subchapter, "qualifying time period" has the meaning
assigned by Section 313.021.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.102. ELIGIBILITY FOR TAX CREDIT; AMOUNT OF
CREDIT.

Text of section effective until December 31, 2007
(a) In addition to the limitation on the appraised value of
the person's qualified property under Subchapter B or C, a person is
entitled to a tax credit from the school district that approved the
limitation in an amount equal to the amount of ad valorem taxes paid
to that school district that were imposed on the portion of the
appraised value of the qualified property that exceeds the amount
of the limitation agreed to by the governing body of the school
district under Section 313.027(a)(2) in each year in the applicable
qualifying time period.
(b) If the person relocates the person's business outside
the school district, the person is not entitled to the credit in or
after the year in which the relocation occurs.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.103. APPLICATION.

Text of section effective until December 31, 2007
An application for a tax credit under this subchapter must be
made to the governing body of the school district to which the ad
valorem taxes were paid. The application must be:
(1) made on the form prescribed for that purpose by the
comptroller and verified by the applicant;
(2) accompanied by:
(A) a tax receipt from the collector of taxes for
the school district showing full payment of school district ad
valorem taxes on the qualified property for the applicable
qualifying time period; and
(B) any other document or information that the
comptroller or the governing body considers necessary for a
determination of the applicant's eligibility for the credit or the
amount of the credit; and
(3) filed before September 1 of the year immediately
following the applicable qualifying time period.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.104. ACTION ON APPLICATION; GRANT OF CREDIT.

Text of section effective until December 31, 2007
Before the 90th day after the date the application for a tax
credit is filed, the governing body of the school district shall:
(1) determine the person's eligibility for a tax
credit under this subchapter; and
(2) if the person's application is approved, by order
or resolution direct the collector of taxes for the school
district:
(A) in the second and subsequent six tax years
that begin after the date the application is approved, to credit
against the taxes imposed on the qualified property by the district
in that year an amount equal to one-seventh of the total amount of
tax credit to which the person is entitled under Section 313.102,
except that the amount of a credit granted in any of those tax years
may not exceed 50 percent of the total amount of ad valorem school
taxes imposed on the qualified property by the school district in
that tax year; and
(B) in the first tax year that begins on or after
the date the person's eligibility for the limitation under
Subchapter B or C expires, to credit against the taxes imposed on
the qualified property by the district an amount equal to the
portion of the total amount of tax credit to which the person is
entitled under Section 313.102 that was not credited against the
person's taxes under Paragraph (A) in a tax year covered by
Paragraph (A), except that the amount of a tax credit granted under
this paragraph in any tax year may not exceed the total amount of ad
valorem school taxes imposed on the qualified property by the
school district in that tax year.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

§ 313.105. REMEDY FOR ERRONEOUS CREDIT.

Text of section effective until December 31, 2007
(a) If the comptroller and the governing body of a school
district determine that a person who received a tax credit under
this subchapter for any reason was not entitled to the credit
received or was entitled to a lesser amount of credit than the
amount of the credit received, an additional tax is imposed on the
qualified property equal to the full credit or the amount of the
credit to which the person was not entitled, as applicable, plus
interest at an annual rate of seven percent calculated from the date
the credit was issued.
(b) A tax lien attaches to the qualified property in favor
of the school district to secure payment by the person of the
additional tax and interest imposed by this section and any
penalties incurred. A person delinquent in the payment of an
additional tax under this section may not submit a subsequent
application or receive a tax credit under this subchapter in a
subsequent year.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.

SUBCHAPTER E. AVAILABILITY OF TAX CREDIT AFTER PROGRAM EXPIRES

§ 313.171. SAVING PROVISIONS. (a) A limitation on
appraised value approved under Subchapter B or C before the
expiration of that subchapter continues in effect according to that
subchapter as that subchapter existed immediately before its
expiration, and that law is continued in effect for purposes of the
limitation on appraised value.
(b) The 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 expiration of Subchapter D.

Added by Acts 2001, 77th Leg., ch. 1505, § 1, eff. Jan. 1, 2002.