AI-assisted research summary: A municipality may agree to exempt some property value from taxation for up to four years, but only for specified cleanup-related property and subject to filing rules.
Sec. 312.211. AGREEMENT BY MUNICIPALITY RELATING TO PROPERTY SUBJECT TO VOLUNTARY CLEANUP AGREEMENT. (a) This section applies only to: (1) real property: (A) that is located in a reinvestment zone; (B) that is not in an improvement project financed by tax increment bonds; and (C) that is the subject of a voluntary cleanup agreement under Section 361.606, Health and Safety Code; and (2) tangible personal property located on the real property. (b) The governing body of a municipality eligible to enter into a tax abatement agreement under Section 312.002 may agree in writing with the owner of property described by Subsection (a) to exempt from taxation a portion of the value of the property for a period not to exceed four years. The agreement takes effect on January 1 of the next tax year after the date the owner receives a certificate of completion for the property under Section 361.609, Health and Safety Code. The agreement may exempt from taxation: (1) not more than 100 percent of the value of the property in the first year covered by the agreement; (2) not more than 75 percent of the value of the property in the second year covered by the agreement; (3) not more than 50 percent of the value of the property in the third year covered by the agreement; and (4) not more than 25 percent of the value of the property in the fourth year covered by the agreement. (c) A property owner may not receive a tax abatement under this section for the first tax year covered by the agreement unless the property owner includes with the application for an exemption under Section 11.28 filed with the chief appraiser of the appraisal district in which the property has situs a copy of the certificate of completion for the property. (d) A property owner who files a copy of the certificate of completion for property for the first tax year covered by the agreement is not required to refile the certificate in a subsequent tax year to receive a tax abatement under this section for the property for that tax year. (e) The chief appraiser shall accept a certificate of completion filed under Subsection (c) as conclusive evidence of the facts stated in the certificate. (f) The governing body of the municipality may cancel or modify the agreement if: (1) the use of the land is changed from the use specified in the certificate of completion; and (2) the governing body determines that the new use may result in an increased risk to human health or the environment. (g) A municipality may enter into a tax abatement agreement covering property described by Subsection (a) under this section or under Section 312.204, but not under both sections. Section 312.204 applies to an agreement entered into under this section except as otherwise provided by this section. (h) A school district may not enter into a tax abatement agreement under this section. Added by Acts 1997, 75th Leg., ch. 855, Sec. 8, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1333, Sec. 6, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 483, Sec. 6, eff. Sept. 1, 2001. SUBCHAPTER C. TAX ABATEMENT IN COUNTY REINVESTMENT ZONE