2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle C - Taxable Property and Exemptions › Chapter 11 - Taxable Property and Exemptions › Subchapter B. Exemptions › Section 11.34. Limitation of Taxes on Real Property in Designated Areas of Certain Municipalities

Sec. 11.34.  LIMITATION OF TAXES ON REAL PROPERTY IN DESIGNATED AREAS OF CERTAIN MUNICIPALITIES.  (a)  This section applies only to a municipality having a population of less than 10,000.
(b)  Acting under the authority of Section 1-o, Article VIII, Texas Constitution, the governing body of a municipality, by official action, may call an election in the municipality to permit the voters of the municipality to determine whether to authorize the governing body to enter into an agreement with an owner of real property in or adjacent to an area in the municipality that has been approved for funding under the programs administered by the Department of Agriculture as described by Section 1-o, Article VIII, Texas Constitution, under which the parties agree that the ad valorem taxes imposed by any political subdivision on the owner's real property may not be increased for the first five tax years after the tax year in which the agreement is entered into, subject to the terms and conditions provided by the agreement.
(c)  If the authority to limit tax increases under this section is approved by the voters and the governing body of the municipality enters into an agreement to limit tax increases under this section, the tax officials shall appraise the property to which the limitation applies and calculate taxes as on other property, but if the tax so calculated exceeds the limitation, the tax imposed is the amount of the tax as limited by this section, except as provided by Subsections (f) and (g).
(d)  An agreement to limit tax increases under this section must be entered into before December 31 of the tax year in which the election was held.
(e)  A taxing unit may not increase the total annual amount of ad valorem taxes the taxing unit imposes on the property above the amount of the taxes the taxing unit imposed on the property in the tax year in which the governing body of the municipality entered into an agreement to limit tax increases under this section.
(f)  Subject to Subsection (g), an agreement to limit tax increases under this section expires on the earlier of:
(1)  January 1 of the sixth tax year following the tax year in which the agreement was entered into; or
(2)  January 1 of the first tax year in which the owner of the property when the agreement was entered into ceases to own the property.
(g)  If property subject to an agreement to limit tax increases under this section is owned by two or more persons, the limitation expires on January 1 of the first tax year following the year in which the ownership of at least a 50 percent interest in the property is sold or otherwise transferred.
(h)  Notwithstanding Subsection (a), if the population of a municipality to which this section applies when the municipality enters into an agreement to limit taxes under this section subsequently increases to 10,000 or more, the validity of the agreement is not affected by that change in population, and the agreement does not expire because of that change.
Added by Acts 2009, 81st Leg., R.S., Ch. 464 (S.B. 252), Sec. 1, eff. June 19, 2009.