economyEconomic Development

Rule 9.1054, School District Application Review and Agreement to Limit Appraised ValueValue

Archive of the Texas Administrative Code that pertains to Chapter 313
from January 1, 2014 - January 23, 2016
TITLE 34PUBLIC FINANCE
PART 1COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 9PROPERTY TAX ADMINISTRATION
SUBCHAPTER FLIMITATION ON APPRAISED VALUE AND TAX CREDITS ON CERTAIN QUALIFIED PROPERTY
RULE §9.1054School District Application Review and Agreement to Limit Appraised Value

(a) Application fee. Prior to accepting an application for an agreement for limitation on appraised value pursuant to Tax Code, Chapter 313, Subchapter B, the governing body of a school district by official action shall establish a reasonable nonrefundable application fee to be paid by an applicant who applies to the school district for a limitation on the appraised value of applicant's property under such subchapter. The amount of the fee shall not exceed the estimated cost to the district of processing and acting on an application. The total fee shall be paid at time the application is submitted to the school district. Any fees not accompanying the original application shall be considered supplemental payments.

(b) Initial review. If a school district receives a completed application, amended application, or supplemental application for property tax limitation within its boundaries, the school district shall submit to the comptroller, not later than 7 days after receiving it, a copy of the following documents:

(1) the application;

(2) an economic analysis, if any;

(3) application amendment;

(4) application supplement; and

(5) proof of payment of the total filing fee required by the school district.

(c) Acting on a completed application. If the governing body of the school district by official action elects to consider an application and determines that the application received is a completed application, the school district shall:

(1) provide written notice to the applicant and to the comptroller, with a copy to the appraisal district, that the school district has received and will be considering a completed application. The notice shall include:

(A) the date on which the application was received;

(B) the date on which the governing body elected to consider the application; and

(C) the date on which the school district determined that applicant has submitted a completed application;

(2) at the time the school district provides notice of a completed application, deliver to the comptroller:

(A) a copy of the completed application including all material required by §9.1053(a) and, if applicable (b), of this title (relating to Entity Requesting Agreement to Limit Appraised Value); and

(B) a request to the comptroller to provide an economic impact evaluation;

(3) if the school district maintains a generally accessible Internet web site, provide a clear and conspicuous link on its web site to the Internet web site maintained by the comptroller where substantive documents for the value limitation application for such school district are posted;

(4) on request of the comptroller, provide such written documents containing information requested by the comptroller as necessary for the consideration of a limitation on appraised value pursuant to Tax Code, Chapter 313 within 20 days of the date of the request; and

(5) not later than 151 days after the application review start date, present to the governing body of the school district for its consideration:

(A) the completed application that has been submitted by applicant;

(B) the economic impact analysis submitted by the comptroller;

(C) the comptroller certificate for a limitation or written explanation for not issuing a certificate; and

(D) a limitation agreement that includes all stipulations, provisions, terms, and conditions required by subsection (g) of this section that is acceptable to the applicant.

(d) Extending time period for action. The governing body of the school district may extend the time period to approve a completed application required by subsection (c)(5) of this section only if:

(1) either:

(A) an economic impact analysis has not been submitted to the school district by the comptroller; or

(B) by agreement with applicant; and

(2) notice of the extension is provided to the comptroller within 7 days of the decision to provide the extension.

(e) Application changes after the notice of completed application. If a school district receives an amended application or a supplemental application from an applicant after the school district has prepared or sent written notice that the applicant has submitted a completed application, the school district shall either:

(1) reject the amended application, supplemental application, or application, in whole or in part, and discontinue consideration of any submission by applicant;

(2) with the written concurrence of the comptroller, consider the completed application, as amended or supplemented, before the 151st day from the application review start date; or

(3) review the documents submitted by applicant, issue an amended written notice of a completed application, and present the amended application to the governing body of the school district in the manner and time period authorized by subsection (c)(5) of this section.

(f) Application with comptroller certificate for a limitation. When presented a completed application pursuant to subsection (c)(5) of this section for which the comptroller has submitted a comptroller certificate for a limitation, the governing body of the school district shall either:

(1) by majority vote adopt a written resolution approving the application which shall include:

(A) written findings:

(i) as to each criterion listed in §9.1055(d)(3)(B) - (D) of this title (relating to Comptroller Application Review and Agreement to Limit Appraised Value);

(ii) as to the criteria required by Tax Code, §313.025(f-1) if applicable;

(iii) that the information in the application is true and correct; and

(iv) that applicant is eligible for the limitation on the appraised value of the entity's qualified property;

(B) a determination that granting the application is in the best interest of the school district and this state; and

(C) designate and direct a representative of the governing body of the school district to execute the agreement for property tax limitation presented by the approved applicant that complies with this subchapter and Tax Code, Chapter 313;

(2) by majority vote disapprove the application; or

(3) take no official action and the application shall be considered disapproved on the 151st day after the application review start date.

(g) Agreement for limitation on appraised value. Pursuant to the provisions of Tax Code, Chapter 313 and this subchapter, in order to implement a limitation on the appraised value for school district maintenance and operation tax purposes on the approved applicant's qualified property that has been approved by the governing body of the school district, at the time of the approval of the application, the authorized representative of the school district and the approved applicant shall execute a Texas Economic Development Act Agreement with terms that at a minimum include:

(1) all Texas Taxpayer Identification Numbers assigned by the comptroller to the approved applicant executing the agreement and all Texas Taxpayer Identification Numbers of its reporting entity, which shall be the same numbers listed on the application and, if the approved applicant is comprised of members of a combined group, all Texas Taxpayer Identification Numbers for each such combined group's members that own a direct interest in the property subject to the proposed agreement;

(2) a stipulation that the agreement is executed on the basis that the application is complete and accurately represents all material representations, information, and facts and incorporates the application, all the attachments thereto, and any application supplement or application amendment as part of the agreement as if set forth fully in the agreement;

(3) a condition that upon the written determination of the governing body of the school district that the application is either incomplete or inaccurate as to any material representation, information, or fact, the agreement shall be invalid and void except for the enforcement of the provisions required by paragraph (12) of this subsection;

(4) provisions required for an agreement listed in Tax Code, Chapter 313 with particular reference to Tax Code, §313.027(e), (f), and (i);

(5) a provision that identifies the qualifying time period that shall be consistent with the qualifying time period requested in the application;

(6) a provision that identifies the beginning of the limitation period that is consistent with the limitation period requested in the application;

(7) a condition that before the appraised value of the qualified property of the approved applicant may obtain the limitation on the appraised value identified in the agreement, the approved applicant shall make the qualified investment, as defined in Tax Code, §313.021(1), at least in the amounts required in Tax Code, §313.022, or §313.052 if applicable, within the qualifying time period specified in the agreement;

(8) a provision that the approved applicant is required to:

(A) create at least the number of new qualifying jobs required by Tax Code, Chapter 313 during the qualifying time period;

(B) create at least the number of qualifying jobs to which the applicant committed in the application during the qualifying time period;

(C) maintain at least the number of qualifying jobs committed in the application from the time they are created until at least the end of the fifth year following the expiration of the limitation on appraised value provided by the agreement; and

(D) for all jobs that are non-qualifying jobs, pay an average weekly wage that exceeds the average weekly wage for non-qualifying jobs in the county where the non-qualifying jobs are located;

(9) a provision that identifies the limitation on the appraised value of the qualified property of the approved applicant consistent with Tax Code, §313.027, or if applicable Tax Code, §313.054;

(10) a provision that separately states and explicitly identifies the amount, or the method for determining the amount, of any and all payments or transfers made to the school district or to any person or persons in any form if the payment or transfer of thing of value is provided in recognition of, anticipation of, or consideration for the agreement for limitation on appraised value made pursuant to Tax Code, §§313.027(f)(1), 313.027(f)(2), or 313.027(i);

(11) a provision by which the approved applicant is required to submit to the school district any information as thereafter may be reasonably requested by the school district or the comptroller in order to evaluate the progress of the agreement or administer and implement Tax Code, Chapter 313 and this subchapter;

(12) a provision that:

(A) in the event that the approved applicant fails in any year to comply with the stipulation, provision, term, or condition of the agreement identified in paragraphs (3), (4), (8)(A), or (10) of this subsection, the approved applicant is assessed as liquidated damages an amount equal to the amount computed by subtracting from the market value of the property for the tax year in which the approved applicant failed to comply, the value of the property as limited by the agreement and multiplying the difference by the maintenance and operations tax rate of the school district;

(B) deems the penalty delinquent if it is not paid on or before February 1 of the following tax year; and

(C) applies Tax Code, §33.01 to the delinquent penalty in the manner that section applies to delinquent taxes;

(13) a provision that the approved applicant shall comply with the conditions included in the certification for a limitation issued by the comptroller;

(14) for agreements in which the governing body of the school district approved a deferral of the start of the qualifying time period, and in which the qualifying time period starts more than one year after the date that the application is approved, provisions that:

(A) require the approved applicant to provide an application amendment or supplement to the school district and comptroller:

(i) that identifies any changes in the information that was provided in the application that was approved by the school district and as considered by the comptroller;

(ii) no earlier than 180 days prior to the start of the qualifying time period; and

(iii) no later than 90 days prior to the start of the qualifying time period;

(B) require the approved applicant to comply with a written request from the school district or comptroller to provide additional information necessary to evaluate the economic impact analysis for the conditions prior to the start of the qualifying time period; and

(C) authorize the governing body of the school district to terminate the agreement if the comptroller withdraws its certificate for a limitation based on the revised application;

(15) a provision that within 60 days from the date commercial operations begin, the approved applicant shall provide to the school district, the comptroller, and the appraisal district a specific and detailed description of the land, tangible personal property, buildings, or permanent, nonremovable building components (including any affixed to or incorporated into real property) to which the value limitation applies including maps or surveys of sufficient detail and description to locate all such qualified property within the boundaries of the land which is subject to the agreement if the final description is different than the description provided in the application or any supplemental application information;

(16) a provision that in order to amend or in any manner modify the application, agreement, or notice as provided by paragraph (14) of this subsection, the following shall occur:

(A) the approved applicant shall submit to the school district and the comptroller:

(i) a written request to amend the application and limitation agreement which shall specify the changes the applicant requests;

(ii) any changes to the information that was provided in the application that was approved by the school district and considered by the comptroller; and

(iii) any additional information requested by the school district or the comptroller necessary to evaluate the amendment or modification;

(B) the comptroller shall review the request and any additional information and provide a revised comptroller certificate for a limitation within 90 days of receiving the revised application or the request to amend the application is denied;

(C) in accord with the procedure identified in subsection (h) of this section, the governing body of the school district shall approve or disapprove the request before the expiration of 120 days after the request is filed;

(17) a provision that the failure of the approved applicant to either pay a penalty assessed or provide and implement a plan to remedy a non-compliance as required by the comptroller pursuant to §9.1059 of this title (relating to Annual Compliance Review for Qualifying Jobs and Penalties) is a material breach of the agreement;

(18) a provision that the agreement holder may assign its interest in the agreement only if such assignment is approved according to the provisions of paragraph (16) of this subsection;

(19) for a Texas Priority Project, a provision that in the event that the approved applicant fails to place in service qualified investment of at least $1 billion during the qualifying time period the agreement terminates and the applicant is subject to any damages or penalties required by the agreement, the comptroller's rules, or the Act; and

(20) any other provision negotiated between the applicant and the school district that does not conflict or impair the application or implementation of any stipulation, provision, term, or condition required by this subsection, this subchapter, or Tax Code, Chapter 313.

(h) Limitation agreement with deferred qualifying time period. If an agreement for limitation on appraised value includes a provision in which the qualifying time period starts more than one year after the date that the application is approved, the agreement shall include a provision that:

(1) requires the approved applicant to:

(A) provide an application amendment and supplement to the school district and comptroller:

(i) that identifies any changes in the information that was provided in the application that was approved by the school district and that was considered by the comptroller;

(ii) no earlier than 180 days prior to the start of the qualifying time period; and

(iii) no later than 90 days prior to the start of the qualifying time period; and

(B) comply with a written request from the comptroller to provide additional information necessary to prepare a comptroller certificate for a limitation for the conditions prior to the start of the qualifying time period; and

(2) if the comptroller provides:

(A) a comptroller certificate for a limitation with conditions different from the existing agreement, the governing body shall hold a meeting and determine whether to amend the agreement to include the conditions required by the comptroller or terminate the agreement; or

(B) a written explanation of the comptroller's decision not to re-issue a certificate, the school district shall terminate the agreement.

(i) Compliance and enforcement.

(1) The school district shall provide to the comptroller:

(A) any documents that reasonably appear to be substantive documents as defined in this subchapter; and

(B) within seven days of executing the agreement, a copy of the executed agreement and any attachments thereto.

(2) The school district shall provide a copy of the executed agreement to the appraisal district.

(3) The school district shall comply with and enforce the stipulations, provisions, terms, and conditions of the agreement for limitation of the appraised value, this subchapter, and Tax Code, Chapter 313.

(4) To determine and obtain compliance with each agreement, for each calendar year during the term of the agreement the school district shall require the approved applicant to submit:

(A) either:

(i) the information necessary to complete the Annual Eligibility Report, adopted by reference in §9.1052 of this title (relating to Forms); or

(ii) a completed Annual Eligibility Report, adopted by reference in §9.1052 of this title;

(B) a completed Job Creation Compliance Report (Form 50-825), adopted by reference in §9.1052 of this title; and

(C) any information required by the State Auditor Office or its designee.

Source Note: The provisions of this §9.1054 adopted to be effective June 22, 2010, 35 TexReg 5361; amended to be effective June 2, 2014, 39 TexReg 4259