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S.B. No. 1633

AN ACT
relating to certain restrictions on the composition of a tax
increment financing reinvestment zone.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (a), Section 311.006, Tax Code, is
amended to read as follows:
(a) A municipality may not create a reinvestment zone if:
(1) more than 10 percent of the property in the
proposed zone, excluding property that is publicly owned, is used
for residential purposes; or
(2) the total appraised value of taxable real property
in the proposed zone and in existing reinvestment zones exceeds:
(A) 20 percent of the total appraised value of
taxable real property in the municipality and in the industrial
districts created by the municipality, if the municipality is the
county seat of a county:
(i) that is adjacent to a county with a
population of 3.3 million or more; and
(ii) in which a planned community is
located that has 20,000 or more acres of land, that was originally
established under the Urban Growth and New Community Development
Act of 1970 (42 U.S.C. Section 4501 et seq.), and that is subject to
restrictive covenants containing ad valorem or annual variable
budget-based assessments on real property; or
(B) 15 percent of the total appraised value of
taxable real property in the municipality and in the industrial
districts created by the municipality, if Paragraph (A) does not
apply to the municipality.
SECTION 2. The changes in law made by this Act apply only to
a reinvestment zone created on or after the effective date of this
Act. The creation of a reinvestment zone before the effective date
of this Act is covered by the law in effect immediately before the
effective date of this Act, and the former law is continued in
effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.

______________________________ ______________________________
President of the Senate Speaker of the House

I hereby certify that S.B. No. 1633 passed the Senate on
April 16, 2009, by the following vote: Yeas 31, Nays 0.

______________________________
Secretary of the Senate

I hereby certify that S.B. No. 1633 passed the House on
May 26, 2009, by the following vote: Yeas 142, Nays 0, one present
not voting.

______________________________
Chief Clerk of the House

Approved:

______________________________
Date

______________________________
Governor

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