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(a)Initial application contents. To request a limitation
on appraised value for school district maintenance and operations
ad valorem tax purposes pursuant to Tax Code, Chapter 313, an applicant
shall file a completed application with the school district in which
the qualified property will be located.
(1)A completed application shall consist of, at a
minimum, the following items:
(A)the comptroller's current application form and
Schedules A1, A2, B and C attached to the application form with all
information boxes filled in with the information on which applicant
intends to rely including but not limited to:
(i)a specific and detailed description of the proposed
qualified property to which the appraised value limitation will apply
sufficient to clearly distinguish the subject property from property
to which the limitation does not apply and to establish that the property
meets the criteria of qualified property pursuant to these rules and
Tax Code, §313.021(2);
(ii)a specific and detailed description of the investment
described in Tax Code, §313.021(1) that is proposed to be made
in the property subject to the appraised value limitation and sound,
good faith estimates of the dollar value of intended investment sufficient
to establish that the investment meets minimum criteria for qualified
investment pursuant to Tax Code, §313.023 or §313.053 if
applicable, during the proposed qualifying time period;
(iii)if the land upon which the qualified property
will be located contains existing improvements or tangible personal
property, a specific and detailed description of the tangible personal
property, buildings, or permanent, non-removable building components
(including any affixed to or incorporated into real property) on the
land that is sufficient to distinguish existing property from the
proposed new improvements and any proposed property that is not new
improvements which may include maps, surveys, appraisal district values
and parcel numbers, inventory lists, property lists, model and serial
numbers of existing property, or other information of sufficient detail
and description to locate all existing property within the boundaries
of the real property which is subject to the agreement; provided however,
that the date of appraisal shall be within 15 days of the date the
application is received by the school district;
(iv)the total number of any jobs related to construction
or operation of the facility that the applicant chooses to disclose
for the purpose of calculating the economic impact of the project;
(v)the total number of qualifying jobs the applicant
commits to create and maintain during the full term of the agreement
and a schedule which identifies the number of qualifying jobs created
and maintained in each year of the agreement;
(vi)the wages, salaries, and benefits applicant commits
to provide for each qualifying job;
(vii)the total number of non-qualifying jobs the applicant
estimates it will create and maintain during the full term of the
agreement and a schedule which identifies the number of non-qualifying
jobs created and maintained in each year of the agreement;
(viii)the average wages the applicant estimates it
will provide for non-qualifying jobs;
(ix)a statement:
(I)that for the purposes of this statement, "payments
to the school district" include any and all payments or transfers
of things of value made to the school district or to any person or
persons in any form if such payment or transfer of thing of value
being provided is in recognition of, anticipation of, or consideration
for the agreement for limitation on appraised value; and
(II)as to whether:
(-a-)the amount of any and all payments or transfers
made to the school district may result in payments that are or are
not in compliance with Tax Code, §313.027(i); or
(-b-)as to whether the method for determining the
amount may result in payments to the school district that are or are
not in compliance with Tax Code, §313.027(i); and
(x)a description of the real property on which the
intended investment will be made, identified additionally by the county
appraisal district parcel number;
(B)such other written documents containing information
on which applicant relies to qualify for and obtain a limitation on
appraised value pursuant to Tax Code, Chapter 313;
(C)such other written documents containing information
reasonably requested by either the school district or the comptroller
which shall be provided within 20 days of the date of the request,
provided however the applicant may request up to 10 additional days
to provide the requested information;
(D)information identifying the applicant, and if applicant
is a combined group, identifying each such combined group's members
that intend to own a direct interest in the property subject to the
proposed agreement, by:
(i)official name, street address, city, county, state
and mailing address, if different from the street address, of the
official place of business of the applicant and, if the applicant
is a combined group, of each such combined group's members that intend
to own a direct interest in the property subject to the proposed agreement;
(ii)designation of an authorized representative for
the applicant and, if the applicant is a combined group, for each
such combined group's members that intend to own a direct interest
in the property subject to the proposed agreement; and
(iii)for each authorized representative, and if the
applicant is a combined group for each such combined group's members
that intend to own a direct interest in the property subject to the
proposed agreement, provide telephone number, email address, street
address, city, county, state, and mailing address if different from
the street address;
(E)the signature of applicant's authorized representative(s)
by which applicant confirms and attests to the truth and accuracy
of the information submitted in the application to the best knowledge
and belief of applicant and its representative(s);
(F)the total application fee required by the school
district with which the application will be filed;
(G)a statement as to whether or not the project is
an expansion of an existing operation on the land which will become
qualified property, and if so, a description of the nature of the
existing operation, and the nature of the expansion, including an
explanation of how the expansion affects or interacts with current
operations;
(H)a statement specifying the beginning date of the
limitation period, which must be January 1 of the first tax year that
begins after one of the following:
(i)the date of the completed application;
(ii)the date of the end of the qualifying time period,
provided however that such date will begin no later than the beginning
of the limitation period; or
(iii)the date commercial operations are to begin at
the site of the project;
(I)a statement regarding the location and nature of
other facilities that the applicant operates in the state, and a detailed
description of any such facilities that will provide inputs to or
use outputs from the project that is the subject of the application;
(J)a detailed description of any state and local incentives
for which the applicant intends to apply; and
(K)any information that the applicant requests the
comptroller to consider in making the determination under Tax Code, §313.026(c)(2)
that the limitation on appraised value is a determining factor in
the applicant's decision to invest capital and construct the project
in the state, which may include:
(i)other locations not in Texas that the applicant
considered or is considering for the project;
(ii)capital investment and return on investment information
in comparison with other alternative investment opportunities; or
(iii)information related to the applicant's inputs,
transportation and markets.
(2)The completed application contents shall be provided
in the following formats:
(A)one original hard copy of the completed application
in a three ring binder with tabs separating each section of the documents
submitted; and
(B)an electronically digitized copy, formatted in
searchable pdf format or other format acceptable to the comptroller,
certified by the applicant as containing the identical information,
maps, and schedules as the original hard copy. The digitized copy
shall include:
(i)schedules A1, A2, B and C in Microsoft Excel format;
and
(ii)high-resolution maps and graphics (300 dpi or
higher).
(3)The application shall be submitted in any manner
acceptable to the comptroller.
(b)Optional application requests. An applicant may
include in an application:
(1)a request that the school district waive the requirement
of Tax Code, §313.021(2)(A)(iv)(b) or §313.051(b), whichever
is applicable, to create new jobs. In order for a completed application
to include a job waiver request, applicant shall submit:
(A)a specific request to waive the job requirement
of the applicable Tax Code section included with the application that
includes all the minimum requirements set forth in subsection (a)
of this section; and
(B)separated and clearly marked within the application
materials, documentation on which applicant intends to rely that demonstrates
that the applicable jobs creation requirement of the applicable Tax
Code section exceeds the industry standard for the number of employees
reasonably necessary for the operation of the facility of applicant
that is described in the application; or
(2)a request to begin the qualifying time period on
a date that is after the date that the application is approved. In
order for a completed application to include a qualifying time period
deferral request, applicant shall submit:
(A)specific information identifying the requested
qualifying time period within an application that includes all the
minimum requirements set forth in subsection (a) of this section;
and
(B)all relevant economic information that is related
to the impact of the investment during the proposed qualifying time
period, the proposed limitation period, and a period of time after
the limitation period considered appropriate by the comptroller.
(c)Application changes. At the request of the school
district or the comptroller, or with the prior approval of the school
district and the comptroller, applicant may submit an application
amendment or application supplement at any time after the submission
of the initial application. In order to be considered as part of the
application, the application amendment or supplement shall:
(1)be submitted in the same form or schedule and manner
as the information was initially submitted or should have been initially
submitted;
(2)include a date for the submission and a sequential
number identifying the number of submissions made by applicant;
(3)have the signature of the authorized representative(s)
by which applicant confirms and attests to the truth and accuracy
of the information submitted in the application amendment or supplement,
as applicable, to the best knowledge and belief of applicant and its
representative(s); and
(4)be submitted before the 120th day after the application
was accepted by the school district or within another time period
as provided in writing by the comptroller.
(d)Authorized representative(s). The person(s) identified
in the application as applicant's authorized representative(s) shall
serve as the person(s) to whom all correspondence and notifications
from the school district and comptroller shall be sent. Notwithstanding
subsection (c) of this section, applicant may change its authorized
representative(s) if applicant submits to the school district and
the comptroller a letter that provides the name of the new authorized
representative(s), street and mailing address, telephone number, and
official title, if any.
(e)Information confidentiality. At the time that applicant
submits its application, application amendment, or application supplement,
applicant may request that all or parts of such document not be posted
on the internet and not otherwise be publicly released. In order to
make such request, applicant shall:
(1)submit a written request that:
(A)specifically lists each document or portion of
document and each entry in any form prescribed by the comptroller
that applicant contends is confidential; and
(B)identifies specific detailed reasons stating why
applicant believes each item listed should be considered confidential
and identifies any relevant legal authority in support of the request;
(2)segregate the documents which are subject to the
request from the other documents submitted with the application, application
amendment, or application supplement that are not subject to the request;
and
(3)adequately designate the documents subject to the
request as "confidential."
(f)Continued eligibility for value limitation. In
order to obtain and continue to receive a limitation on appraised
value pursuant to Tax Code, Chapter 313, an applicant shall:
(1)have a completed application approved by the governing
body of the school district in compliance with §9.1054(f) of
this title (relating to School District Application Review and Agreement
to Limit Appraised Value);
(2)at least 30 days prior to the meeting at which
the governing body of the school district is scheduled to consider
the application, provide to the school district and the comptroller
a Texas Economic Development Act Agreement, as specified in §9.1052(a)(6)
of this title, with terms acceptable to the applicant;
(3)if the applicant includes a combined group or members
of the combined group, have the agreement executed by the authorized
representative of each member of the combined group that owns a direct
interest in property subject to the proposed agreement by which such
members are jointly and severally liable for the performance of the
stipulations, provisions, terms, and conditions of the agreement;
(4)comply with all stipulations, provisions, terms,
and conditions of the agreement for a limitation on appraised value
executed with the school district, this subchapter, and Tax Code,
Chapter 313;
(5)be and remain in good standing under the laws of
this state and maintain legal status as an entity, as defined in this
subchapter;
(6)owe no delinquent taxes to the state;
(7)maintain eligibility for limitation on appraised
value pursuant to Tax Code, Chapter 313; and
(8)provide to the school district, the comptroller,
and the appraisal district any change to information provided in the
application, including but not limited to:
(A)changes of the authorized representative(s);
(B)changes to the location and contact information
for the approved applicant including all members of the combined group
participating in the limitation agreement;
(C)copies of any valid assignments of the agreement
and contact information for authorized representative(s) of any assignees.
(9)Within 30 days after filing a completed application
with the school district, the applicant must provide the comptroller
with estimates of the gross tax benefit resulting from the requested
limitation on appraised value for school district maintenance and
operations ad valorem tax and future revenues from the qualified property.
The agency certifies that legal counsel has reviewed
the adoption and found it to be a valid exercise of the agency's legal
authority.
Filed with the Office
of the Secretary of State on January 17, 2020
TRD-202000216 Don Neal
Chief Counsel, Operations and
Support Legal Services Division
Comptroller of Public Accounts
Effective date: February 6, 2020
Proposal publication date: November 29, 2019
For further information, please call: (512) 475-0387
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