Texas Administrative Code › Title 19 - EDUCATION › Part 2 - TEXAS EDUCATION AGENCY › Chapter 61 - SCHOOL DISTRICTS › Subchapter AA - COMMISSIONER'S RULES ON SCHOOL FINANCE › Section 61.1019 - Additional State Aid for Ad Valorem Tax Credits under the Texas Economic Development Act

Current through Reg. 49, No. 28; July 12, 2024
(a) General provisions.
				  This section implements the Texas Education Code (TEC), §48.254
				  (Additional State Aid for Ad Valorem Tax Credits Under Texas Economic
				  Development Act). In accordance with the TEC, §
										48.254, a school
				  district, including a school district that is otherwise ineligible for state
				  aid under the TEC, Chapter 48 , is entitled to state aid in an amount equal to
				  the amount of all tax credits applied against ad valorem taxes of the school
				  district in each year that tax credits were applied pursuant to the Texas Tax
				  Code, Chapter 313, also known as the Texas Economic Development Act. School
				  districts eligible to receive additional state aid under the TEC, §
										48.254, must apply to
				  the commissioner of education in order to receive additional state aid equal to
				  the qualifying ad valorem tax credits issued under the Texas Tax Code, Chapter
				  313, Subchapter D, as that subchapter existed prior to repeal by House Bill
				  (HB) 3390, 83rd Texas Legislature, Regular Session, 2013, subject to certain
				  annual limitations.
(b)
				  Definitions. The following phrases, words, and terms, when used in this
				  section, will have the following meanings, unless the context clearly indicates
				  otherwise.
(1) Eligible property--A term that
				  has the meaning assigned in the Texas Tax Code, §
											313.024.
(2) Limitation on appraised value--A term
				  that has the meaning assigned in the Texas Tax Code, Chapter 313. A school
				  district may limit the appraised value on a qualified property for the purposes
				  of ad valorem taxation for a period of eight tax years, beginning with the tax
				  year that follows the applicable two-year qualifying time period. A limitation
				  on appraised value applies only to the maintenance and operations portion of a
				  school district's ad valorem tax rate. For each tax year in which the
				  limitation on appraised value is in effect, the appraised value of the
				  qualified property that is described in the written agreement between the
				  school district and taxpayer for school district maintenance and operations ad
				  valorem tax may not exceed the lesser of the market value of the property or
				  the amount to which the school district has agreed, but the limited amount must
				  be at least the minimum amount of limitation that is set for the applicable
				  school district category in the Texas Tax Code, Chapter 313.
(3) Qualified property--A term that has the
				  meaning assigned in the Texas Tax Code, §
											313.021(2).
(4) Tax credit--A credit that is made to a
				  taxpayer who has applied for and received a limitation on appraised value under
				  the Texas Tax Code, Chapter 313, from the school district that approved the
				  limitation in an amount equal to the amount of ad valorem taxes paid to that
				  school district that were imposed on the portion of the appraised value of the
				  qualified property that exceeds the amount of the limitation agreed to by the
				  governing body of the school district under the Texas Tax Code, §
											313.027(a)(2),
				  in each year in the applicable qualifying time period.
(5) Tax year--The calendar year beginning
				  January 1 in which the taxpayer incurred ad valorem taxes on the qualified
				  property for which the taxpayer is entitled to a tax credit toward ad valorem
				  taxes paid in that tax year.
(6)
				  Texas Economic Development Act--The Texas Tax Code, Chapter 313.