(a) This section applies only to:
(1) real property:
(A) that is located in a reinvestment zone;
(B) that is not in an improvement project financed by tax increment bonds; and
(C) that is the subject of a voluntary cleanup agreement under § 361.606, Health and Safety Code; and
(2) tangible personal property located on the real property.
(b) The governing body of a municipality eligible to enter into a tax abatement agreement under § 312.002 may agree in writing with the owner of property described by Subsection (a) to exempt from taxation a portion of the value of the property for a period not to exceed four years. The agreement takes effect on January 1 of the next tax year after the date the owner receives a certificate of completion for the property under § 361.609, Health and Safety Code. The agreement may exempt from taxation:
(1) not more than 100 percent of the value of the property in the first year covered by the agreement;
(2) not more than 75 percent of the value of the property in the second year covered by the agreement;
(3) not more than 50 percent of the value of the property in the third year covered by the agreement; and
(4) not more than 25 percent of the value of the property in the fourth year covered by the agreement.

Terms Used In Texas Tax Code 312.211

  • Appraisal: A determination of property value.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Improvement: means :
    (A) a building, structure, fixture, or fence erected on or affixed to land;
    (B) a transportable structure that is designed to be occupied for residential or business purposes, whether or not it is affixed to land, if the owner of the structure owns the land on which it is located, unless the structure is unoccupied and held for sale or normally is located at a particular place only temporarily; or
    (C) for purposes of an entity created under § 52, Article III, or § 59, Article XVI, Texas Constitution, the:
    (i) subdivision of land by plat;
    (ii) installation of water, sewer, or drainage lines; or
    (iii) paving of undeveloped land. See Texas Tax Code 1.04
  • in writing: includes any representation of words, letters, or figures, whether by writing, printing, or other means. See Texas Government Code 312.011
  • Property: means real and personal property. See Texas Government Code 311.005
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Real property: means :
    (A) land;
    (B) an improvement;
    (C) a mine or quarry;
    (D) a mineral in place;
    (E) standing timber; or
    (F) an estate or interest, other than a mortgage or deed of trust creating a lien on property or an interest securing payment or performance of an obligation, in a property enumerated in Paragraphs (A) through (E) of this subdivision. See Texas Tax Code 1.04
  • Tax year: means the calendar year. See Texas Tax Code 1.04
  • Year: means 12 consecutive months. See Texas Government Code 311.005

(c) A property owner may not receive a tax abatement under this section for the first tax year covered by the agreement unless the property owner includes with the application for an exemption under § 11.28 filed with the chief appraiser of the appraisal district in which the property has situs a copy of the certificate of completion for the property.
(d) A property owner who files a copy of the certificate of completion for property for the first tax year covered by the agreement is not required to refile the certificate in a subsequent tax year to receive a tax abatement under this section for the property for that tax year.
(e) The chief appraiser shall accept a certificate of completion filed under Subsection (c) as conclusive evidence of the facts stated in the certificate.
(f) The governing body of the municipality may cancel or modify the agreement if:
(1) the use of the land is changed from the use specified in the certificate of completion; and
(2) the governing body determines that the new use may result in an increased risk to human health or the environment.
(g) A municipality may enter into a tax abatement agreement covering property described by Subsection (a) under this section or under § 312.204, but not under both sections. § 312.204 applies to an agreement entered into under this section except as otherwise provided by this section.
(h) A school district may not enter into a tax abatement agreement under this section.

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