HBA-EDN, KDB H.B. 1449 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1449
By: Oliveira
Ways & Means
3/9/2001
Introduced



BACKGROUND AND PURPOSE 

Local governments often use tax abatements to attract new industry and
commercial enterprises and to encourage the retention and development of
existing businesses.  Over 700 tax abatement agreements have been executed
by Texas local governments since the early 1980s.  Through 1999, these
agreements are credited with producing approximately 275,000 new or
retained jobs.  Under current law, incorporated cities, counties, school
districts, and special districts are allowed to enter into tax abatement
agreements. During the 1995 legislative session, the legislature
reauthorized local governments to continue using property tax abatements
until September 1, 2001.   House Bill 1449 eliminates the expiration date
on tax abatements.    

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1449 amends the Tax Code to repeal the sections relating to the
expiration of the Property Redevelopment and Tax Abatement Act. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.