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Title 3. Local Taxation
Subtitle B. Special Property Tax Provisions

Chapter 313. Texas Economic Development Act
Subchapter D. School Tax Credits.

Sec. 313.101. Definition.
Sec. 313.102. Eligibility for Tax Credit; Amount of Credit.
Sec. 313.103. Application.
Sec. 313.104. Action on Application, Grant of Credit.
Sec. 313.105. Remedy for Erroneous Credit.

[Sections 313.106-313.170 reserved for expansion]

Sec. 313.101. Definition.

In this subchapter, "qualifying time period" has the meaning assigned by Section 313.021.

Added by HB 1200, 77th Tex. Leg., 2001, eff. January 1, 2002.

Sec. 313.102. Eligibility for Tax Credit, Amount of Credit.

(a) In addition to the limitation on the appraised value of the person's qualified property under Subchapter B or C, a person is entitled to a tax credit from the school district that approved the limitation in an amount equal to the amount of ad valorem taxes paid to that school district that were imposed on the portion of the appraised value of the qualified property that exceeds the amount of the limitation agreed to by the governing body of the school district under Section 313.027(a)(2) in each year in the applicable qualifying time period.

(b) If the person relocates the person's business outside the school district, the person is not entitled to the credit in or after the year in which the relocation occurs.

Added by HB 1200, 77th Tex. Leg., 2001, eff. January 1, 2002.

Sec. 313.103. Application.

An application for a tax credit under this subchapter must be made to the governing body of the school district to which the ad valorem taxes were paid. The application must be:

(1) made on the form prescribed for that purpose by the comptroller and verified by the applicant;

(2) accompanied by:

(A) a tax receipt from the collector of taxes for the school district showing full payment of school district ad valorem taxes on the qualified property for the applicable qualifying time period; and

(B) any other document or information that the comptroller or the governing body considers necessary for a determination of the applicant's eligibility for the credit or the amount of the credit; and

(3) filed before September 1 of the year immediately following the applicable qualifying time period.

Added by HB 1200, 77th Tex. Leg., 2001, eff. January 1, 2002.

Cross Reference:

Comptroller rule and forms, see Rule Sec. 9.107

Sec. 313.104. Action on Application, Grant of Credit.

Before the 90th day after the date the application for a tax credit is filed, the governing body of the school district shall:

(1) determine the person's eligibility for a tax credit under this subchapter; and

(2) if the person's application is approved, by order or resolution direct the collector of taxes for the school district:

(A) in the second and subsequent six tax years that begin after the date the application is approved, to credit against the taxes imposed on the qualified property by the district in that year an amount equal to one-seventh of the total amount of tax credit to which the person is entitled under Section 313.102, except that the amount of a credit granted in any of those tax years may not exceed 50 percent of the total amount of ad valorem school taxes imposed on the qualified property by the school district in that tax year; and

(B) in the first tax year that begins on or after the date the person's eligibility for the limitation under Subchapter B or C expires, to credit against the taxes imposed on the qualified property by the district an amount equal to the portion of the total amount of tax credit to which the person is entitled under Section 313.102 that was not credited against the person's taxes under Paragraph (A) in a tax year covered by Paragraph (A), except that the amount of a tax credit granted under this paragraph in any tax year may not exceed the total amount of ad valorem school taxes imposed on the qualified property by the school district in that tax year.

Added by HB 1200, 77th Tex. Leg., 2001, eff. January 1, 2002.

Sec. 313.105. Remedy for Erroneous Credit.

(a) If the comptroller and the governing body of a school district determine that a person who received a tax credit under this subchapter for any reason was not entitled to the credit received or was entitled to a lesser amount of credit than the amount of the credit received, an additional tax is imposed on the qualified property equal to the full credit or the amount of the credit to which the person was not entitled, as applicable, plus interest at an annual rate of seven percent calculated from the date the credit was issued.

(b) A tax lien attaches to the qualified property in favor of the school district to secure payment by the person of the additional tax and interest imposed by this section and any penalties incurred. A person delinquent in the payment of an additional tax under this section may not submit a subsequent application or receive a tax credit under this subchapter in a subsequent year.

Added by HB 1200, 77th Tex. Leg., 2001, eff. January 1, 2002.

[Sections 313.106-313.170 reserved for expansion]