The Comptroller of Public Accounts proposes amendments to §9.1051, concerning definitions; §9.1052, concerning forms; §9.1053, concerning entity requesting agreement to limit appraised value; §9.1054, concerning school district application review and agreement to limit appraised value; §9.1059, concerning annual compliance review; and adds new §9.1060, concerning agreement for limitation on appraised value.

The amendment to §9.1051, concerning Definitions, paragraph (1) will change the definition of agreement to include an explicit reference to the adopt by reference form in §9.1052 of this title for the purpose of clarity. Paragraph (14) changes the definition of non-qualifying job to include the requirement that it be a permanent job, correct a statutory reference and include a reference to the new qualifying job definition. This definition is also changed to delete the requirement that the job did not exist prior to the application review start date. The form agreement will require that non-qualifying jobs meet these requirements after the application review start date so that it conforms to the manner in which the qualifying jobs requirement is implemented. The proposed amendment to the definition of paragraph (21), average weekly wage for manufacturing jobs such that in the event that the wage authorized by subparagraph (A) is not available, then the wage authorized by subparagraph (B) is the wage. A clarifying change is proposed for the definition of average weekly wage for non-qualifying jobs. Additionally, new paragraph (30) is added to define qualifying job that consolidates the requirements of a qualifying job from Tax Code, Chapter 313 into a single definition.

The amendment to §9.1052, concerning Forms, identifies forms by the updated form numbers. The form adopted by reference in subsection (a)(5) is being changed in order to correct a prior numbering error. No changes are proposed to the form. The form adopted by reference in subsection (a)(6), the Texas Economic Development Act Agreement, is being changed to reflect the new form number, update certain statutory references, and provide greater flexibility to the parties to the agreement. The proposed amendment in subsection (b) updates the form website address. The proposed amendment to subsection (c) clarifies that this subsection applies to the form agreement adopted pursuant to this section as well as the application forms adopted pursuant to this section.

The amendment to §9.1053(f), concerning Entity Requesting Agreement to Limit Appraised Value, reduces the number of days for a draft agreement to be submitted to the district and the comptroller prior to the school board meeting at which an application is considered. This amendment is intended to facilitate prompt application review. Subsection (f) is also amended to delete the provisions in the subsection that identify the terms of the agreement. This amendment is proposed in order to consolidate the requirements concerning the terms of the limitation agreements into new §9.1060 of this title and to eliminate redundancy with other sections of this subchapter.

Amendments are also proposed to §9.1054, concerning School District Application Review and Agreement to Limit Appraised Value. The amendments to subsection (g) are to delete the provisions that identify the required terms of a value limitation agreement and move these requirements to new §9.1060 of this title. These amendments are proposed in order to consolidate the requirements concerning the terms of the limitation agreements into new §9.1060 and to eliminate redundancy with other sections in this subchapter. The amendments to subsection (h) are to clarify the requirements for the school district review of value limitation agreement prior to the start of a deferred qualifying time period in those instances when the school district has approved an agreement that permits the qualifying time period to start more than one year after the date that the application is approved.

The amendments to §9.1059(c), concerning Annual Compliance Review for Qualifying Jobs and Penalties, amend the wage determination for new qualifying job to be the site where the job is located rather than the location of the school district's administrative office. This amendment is intended to provide more accurate data regarding the job creation requirement.

New §9.1060, concerning Agreement for Limitation on Appraised Value, contains the provisions required to be included in an agreement for limitation on appraised value that previously were in other sections in the subchapter. This change to the former provisions is proposed in order to reduce redundancy. Proposed paragraph (8)(D) changes the provisions formerly found in §9.1053(f)(2)(H)(iv) and §9.1054(h)(8)(D) so that paragraph (8)(D) more closely recites the language of the statute in Tax Code, §313.024(d). Proposed paragraph (12)(A) changes the provision formerly found in §9.1053(f)(2)(L)(i) and §9.1054(h)(12)(A) so that new paragraph (12)(A) does not include a reference only to paragraph (8)(A). This change is proposed so that an applicant's failure to comply with any of the requirements identified in paragraph (8) may result in an assessment of liquidated damages as specified in paragraph (12). It is proposed to ensure enforcement of the obligations created in Tax Code, Chapter 313. Proposed paragraph (14) changes the provision formerly found §9.1053(f)(2)(N) and §9.1054(h)(14) to authorize the school board to amend the agreement when the agreement has deferred the start of the qualifying time period for more than one year and the comptroller has revised its certificate for a limitation. This change to the former provisions is proposed to ensure compliance with Tax Code, Chapter 313. Proposed paragraph (16) changes the provision formerly found §9.1053(f)(2)(P) and §9.1054(h)(16) to conform an internal reference necessitated by moving the provision in §9.1060.

John Heleman, Chief Revenue Estimator, has determined that for the first five-year period the rules will be in effect, there will be no significant 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 by improving the administration of local property valuation and taxation. The proposed rules would have no fiscal impact on small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rules.

Comments on the amendments and new section may be submitted to Korry Castillo, Director, Data Analysis and Transparency Division, at Korry.castillo@cpa.texas.gov or at P.O. Box 13528 Austin, Texas 78711. Comments must be received no later than 30 days from the date of publication of the proposal in the Texas Register.

The amendments and new section are proposed under Tax Code, §313.027 which authorizes the comptroller to prescribe the form of an agreement for limitation on appraised value, and §313.031 which authorizes the comptroller to adopt rules necessary for the implementation and administration of Tax Code, Chapter 313.

The amendments and new section implement Tax Code, Chapter 313.