State Tax Refunds for Economic DevelopmentCompanies Must Apply for 2001 Refunds by July 31, 2002
The Texas Tax Code provides for state tax refunds for economic development. Some Texas property owners may be eligible to receive refunds on their state sales and use taxes and franchise taxes for paying local school taxes.
If you have questions about the refund program, please call Patricia Bailey of the Comptroller’s Property Tax Division at 1-800-252-9121, extension 3-4416. In Austin, call 512/463-4416.
Sections 111.301 to 111.304 of the Tax Code address state tax refunds to qualified property owners who entered into property tax abatement agreements after January 1, 1996 with a city or county, but not a school district. A property owner may apply for a refund of state taxes for the school taxes paid, if the owner’s business payroll increased at least $3 million (specific to property in Texas) or the abated property’s appraised value increased by at least $4 million. The maximum refund is the lesser of the school taxes paid or the amount of net sales and use tax and net franchise tax paid in the tax year the refund is claimed.
The total for all refunds collectively may not exceed $10 million, the amount made available by the Texas Legislature.
Property owners with tax abatement agreements entered into on or before January 1, 1996 are not eligible for these state refunds.
July 31 deadline
Companies wanting a refund of their 2001 school taxes must submit a refund application to the Texas Comptroller before August 1, 2002.
The refund application form is available by calling 1-800-252-9121, and choosing number 4. In Austin, call 512/305-9999. The form is also available on the agency’s Window on State Government Web site. To access the form on the Internet, go to www.window.state.tx.us/taxinfo/taxforms/02-forms.html. The fourth form listed at this site is AP-186, Application for Refund of State Taxes Paid by Person Owning Certain Abated Property.
Effective September 1, 2001, the Comptroller has 90 days, rather than 60 days, to compute the total amount of eligible refunds after the filing deadline.
Tax Code Section 312.005 requires a taxing unit to file with the Comptroller a copy of any tax abatement agreement (and any additional information that the Comptroller requests) before April 1 of the year following the execution of the agreement. The abatement agreement must be on file with the Comptroller before the Comptroller may act upon a refund application.
Beginning with all tax abatement agreements entered into on or after September 1, 2001, the county appraisal district is responsible for filing with the Comptroller before July 1 of the year following execution of the agreement.