The following phrases, words and terms, when used in this subchapter
shall have the following meanings, unless the context clearly indicates
otherwise. Words defined in Tax Code, Chapter 313 and not defined
in this subchapter shall have the meanings provided by Tax Code, Chapter
313.
(1)Agreement--The written agreement between the governing
body of a school district and the approved applicant on the form adopted
by reference in §9.1052 of this title (relating to Forms) to
implement a limitation on the appraised value for school district
maintenance and operations ad valorem property tax purposes on an
entity's qualified property, required by Tax Code, §313.027(d).
(2)Applicant--An entity that has applied for a limitation
on appraised value for school district maintenance and operations
ad valorem property tax purposes on the entity's property as provided
by Tax Code, Chapter 313.
(3)Application--An application for limitation of appraised
value limitation for school district maintenance and operations ad
valorem property tax purposes on an entity's qualified property on
the form adopted by reference in §9.1052 of this title, the schedules
attached thereto, and the documentation submitted by an entity for
the purpose of obtaining an agreement for a limitation on appraised
value from a school district.
(4)Application amendment--Information submitted by
an applicant intended to be considered as part of or in support of
the application that amends by replacing information that was previously
submitted by applicant.
(5)Application supplement--Information submitted by
an applicant intended to be considered as part of or in support of
the application that has not been previously submitted.
(6)Approved applicant--An applicant whose application
has been approved by a school district for a limitation on appraised
value agreement according to the provisions of Tax Code, Chapter 313,
including any assignees of that applicant.
(7)Application review start date--The later date of
either the date on which the school district issues its written notice
that an applicant has submitted a completed application or the date
on which the comptroller issues its written notice that an applicant
has submitted a completed application.
(8)Appraisal district--The county appraisal district
that would appraise the property which is the subject of an application.
(9)Appraised value--The value of property as defined
by Tax Code, §1.04(8).
(10)Completed application--An application in the form
and number and containing all the information required pursuant to
§9.1053 of this title (relating to Entity Requesting Agreement
to Limit Appraised Value) that has been determined by the school district
and the comptroller to include all minimum requirements for consideration.
(11)Comptroller--The Texas Comptroller of Public Accounts
or the designated representative of the Texas Comptroller of Public
Accounts acting on behalf of the comptroller.
(12)Entity--Any entity upon which a tax is imposed
by Tax Code, §171.001 including a combined group as defined by
Tax Code, §171.0001(7) or members of a combined group, provided
however, an entity as defined herein does not include a sole proprietorship,
partnership or limited liability partnership.
(13)Data Analysis and Transparency Division or DAT--The
Data Analysis and Transparency Division of the comptroller's office,
or the division of the comptroller's office responsible for the administration
of Tax Code, Chapter 313, acting through the designated division director
or a representative thereof.
(14)Non-qualifying job--A permanent position of employment
to perform work:
(A)that includes at a minimum the following requirements:
(i)that is based on the qualified property;
(ii)that is in direct support of activity identified
in Tax Code, §313.024(b);
(iii)for at least 1,600 hours a year; and
(iv)over which the applicant has significant degree
of control of:
(I)the creation of the job;
(II)the job description; and
(III)the job characteristics or performance of the
job through either a business, contractual or vendor relationship;
and
(B)is not a qualifying job as that term is defined
in Tax Code, §313.021(3) and these rules.
(15)Qualified investment--Property that meets the
requirements of Tax Code, §313.021(1).
(16)Qualified property--Land, new building, or new
improvement erected or affixed to the land after the application review
start date, or eligible tangible personal property first placed in
service after the application review start date that:
(A)meets the requirements of Tax Code, §313.021(2),
and that is used either as an integral part, or as a necessary auxiliary
part, in manufacturing, research and development, a clean coal project,
an advanced clean energy project, renewable energy electric generation,
electric power generation using integrated gasification combined cycle
technology, nuclear electric power generation, a Texas Priority Project,
or a computer center;
(B)is clearly distinguished from any existing property
and clearly distinguished from any proposed property that is not a
new improvement;
(C)is separate from, and not a component of, any existing
property;
(D)if buildings or improvements, did not exist before
the application review start date or if tangible personal property,
was first placed in service after the application review start date;
(E)is not used to renovate, refurbish, upgrade, maintain,
modify, improve, or functionally replace existing buildings or existing
improvements;
(F)does not replace or modify existing buildings other
than expansion of an existing building; and
(G)is not used solely for the transportation of product
prior to the commencement, or subsequent to the completion, of an
applicable qualifying activity described in subparagraph (A) of this
paragraph.
(17)School district--A school district that has received
an application for a limitation on appraised value pursuant to Tax
Code, Chapter 313 or the designated representative of the school district
acting on behalf of the school district.
(18)SOAH--State Office of Administrative Hearings.
(19)Substantive document--A document or other information
or data in electronic media determined by the comptroller to substantially
involve or include information or data significant to an application,
the evaluation or consideration of an application, or the agreement
or implementation of an agreement for limitation of appraised value
pursuant to Tax Code, Chapter 313. The term includes, but is not limited
to, any application requesting a limitation on appraised value and
any amendments or supplements, any economic impact evaluation made
in connection with an application, any agreement between applicant
and the school district and any subsequent amendments or assignments,
any school district written finding or report filed with the comptroller
as required under this subchapter[, and any completed Annual
Eligibility Report (Form 50-772A) submitted to the comptroller].
The term shall not include any employee names or other personal identifying
information that is submitted to the comptroller. Positions can be
described by job type, category, or general title.
(20)Agreement holder--An entity that has executed
an agreement with a school district.
(21)Average weekly wage for manufacturing jobs--Either
the average weekly wage:
(A)for all jobs primarily engaged in activities described
in Sectors 31 - 33 of the 2007 North American Industry Classification
System in a county as identified by the Texas Workforce Commission's
Quarterly Employment and Wages (QCEW) webpage available on the Texas
Workforce Commission's website; or
(B)for all manufacturing jobs or if the information
for subparagraph (A) of this paragraph is not available, as determined
by data published annually by the Texas Workforce Commission for the
purposes of Tax Code, Chapter 313 for each Council of Government Region,
based on Bureau of Labor Statistics, Texas Occupational Employment
and Wages (OES) data, as it is posted on the Texas Workforce Commission's
website.
(22)Average weekly wage for non-qualifying jobs--The
average weekly wage as identified by the Texas Workforce Commission
Quarterly Employment and Wages (QCEW) average weekly wages for all
private industries for the most recent four quarterly periods for
which data is available at the time that an application is deemed
complete, as it is posted on the Texas Workforce Commission's website.
(23)First placed in service--The first use of the
property by the agreement holder.
(24)New improvement--A building, structure, or fixture
that, after the application review start date:
(A)is a discrete unit of property erected on or affixed
to land eligible to be qualified property; and
(B)is not erected or affixed as part of maintenance,
renovation, refurbishment, improvement, modification, or upgrade of
existing property, nor is newly added or proposed to be added property
functionally replacing existing property, provided however that a
proposed improvement may be considered a new improvement if it is
an addition to an existing building that will contain new tangible
personal property that did not exist before the application review
start date.
(25)Per capita income--Per capita money income in
the past 12 months as determined by the United States Census Bureau
and reported at its website http://www.census.gov.
(26)Strategic investment area--An area that is:
(A)a county within this state with unemployment above
the state average and per capita income below the state average;
(B)an area within this state that is a federally designated
urban enterprise community or an urban enhanced enterprise community;
or
(C)a defense economic readjustment zone designated
under Government Code, Chapter 2310.
(27)Texas Economic Development Act Agreement--The
form, adopted by reference in §9.1052 of this title, which provides
a template for the terms of an agreement to implement a limitation
on appraised value on property within a school district and that has
the title Agreement For Limitation On Appraised Value Of Property
For School District Maintenance And Operations Taxes.
(28)Texas Priority Project--A project on which the
applicant commits to place in service qualified investment of more
than $1 billion during the qualifying time period, based on the comptroller
review of the application submitted by the school district.
(29)Unemployment--The most recent calendar year unemployment
rate, not seasonally adjusted, as determined by the Labor Market &
Career Information Department (LMCI) of the Texas Workforce Commission
and reported on its website.
(30)Qualifying job--A permanent position of employment
that includes at a minimum the following requirements:
(A)provides work for at least 1600 hours a year;
(B)is in direct support of activity identified in
Tax Code, §313.024(b);
(C)is based on the qualified property;
(D)is a job over which the applicant has significant
degree of control of:
(i)the creation of the job;
(ii)the job description; and
(iii)the job characteristics or performance of the
job through either a business, contractual or vendor relationship;
(E)is covered by a group health benefit plan for which
the applicant offers to pay at least 80% of the premiums or other
charges assessed for employee-only coverage under the plan, regardless
of whether an employee may voluntarily waive the coverage;
(F)pays at least 110% of the county average weekly
wage for manufacturing jobs in the county where the job is located;
(G)that has not been transferred from another part
of the state; and
(H)that has not been created to replace a previous
employee.
The agency certifies that legal counsel has reviewed
the proposal and found it to be within the state agency's legal authority
to adopt.
Filed with the Office
of the Secretary of State on November 5, 2021
TRD-202104453 Don Neal
General Counsel, Operations and Support Legal
Services
Comptroller of Public Accounts
Earliest possible date of adoption: December 19, 2021
For further information, please call: (512) 475-0387
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