The Comptroller of Public Accounts proposes new §§9.1051 - 9.1058, concerning the limitation on appraised value and tax credits on certain qualified property created by Tax Code, Chapter 313. The new sections will be under new Subchapter F, Limitation on Appraised Value and Tax Credits on Certain Qualified Property. The new sections are being proposed to replace the current §9.107, which the comptroller proposes to repeal. The new sections implement House Bill 2994, House Bill 1470, House Bill 3732, House Bill 3430, and House Bill 3693, 80th Legislature, 2007, clarifies issues related to application and qualification, and adopts by reference application forms for the limitation on appraised value and the tax credits.

New §9.1051 defines certain terms used in new Subchapter F, such as qualified property, application review period, and applicant. New §9.1052 adopts by reference forms entitled Application for Appraised Value Limitation on Qualified Property (From 50-296) and Application For Tax Credit on Qualified Property (Form 50-300) by reference. New §9.1053 concerns requirements and restrictions, governs extension of the application review period, provision of supplemental and amended information, and sets forth requirements for the primary activity of a project and the applicant's use of the property. New §9.1054 governs the applicant and action on applications, including provisions setting forth the application date for certain qualifying time periods, the minimum standards for completion, the actions the governing body must take upon receiving an application, requiring specific information on the application, specifying the types of information that may be amended and types of information that may be supplemented, and addressing the time period in which the comptroller must issue a recommendation when an application is amended. New §9.1055 sets forth the requirements for the written agreement between the school district and the taxpayer to limit the appraised value of certain property, including provisions requiring the school district to send the comptroller and appraisal districts a copy of the agreement, setting out provisions that may be included in the agreement and provisions that must be contained in the agreement, requiring the reporting of additions of property to the agreement to the comptroller and appraisal districts, setting out the requirements for an agreement to add property, and prohibiting amendment of the agreement to extend the qualifying time period. New §9.1056 concerns the tax credit to which an applicant may be entitled and states how the credit is to be calculated. New §9.1057 concerns the comptroller's duties under Tax Code, Chapter 313, including provisions permitting the comptroller to require certain information from the school district, setting forth the time period in which the information must be provided, requiring applicants to promptly submit certain information required to complete a biennial report assessing the progress of each agreement; addresses the calculation of the 60-day time period for issuing the comptroller's recommendation; stating that the comptroller will notify the school district if an application is materially deficient; governing the submission of certain information requested by the comptroller, and providing that information not submitted in a timely manner may not be considered in the comptroller's recommendation, economic impact evaluation, or report. New §9.1058 includes miscellaneous provisions, such as a requirement that recipients of the limitation notify certain parties of certain changes, requiring the chief appraiser to maintain a list of property subject to the limitation; defining an owner of land for purposes of specific sections of Tax Code, Chapter 313, stating that certain changes in conditions do not affect certain terms in the agreement, and that the comptroller may promulgate guidelines to further implement Tax Code, Chapter 313.

John Heleman, Chief Revenue Estimator, has determined that for the first five-year period the rules will be in effect, there will be no revenue impact on the state or units of local government.

Mr. Heleman also has determined that for each year of the first five years the rules are in effect, the public benefit anticipated as a result of enforcing the rules will be in providing guidance to eligible businesses operating in Texas who may apply for a limitation on appraised value on qualified property and for tax credits paid on the property. The proposed rules would be adopted before January 1, 2008 and do not require a statement of the fiscal implications for small businesses. There is no anticipated economic cost to individuals who are required to comply with the proposed rules.

Comments on the new sections may be submitted to Gary Price, Regional Fiscal Analysis, P.O. Box 13528, Austin, Texas 78711-3528.

The new sections are proposed under Tax Code, §313.031, which requires the comptroller to adopt forms and rules for the implementation and administration of Tax Code, Chapter 313.

The new sections implement Tax Code, Chapter 313.