HB 4270

relating to the authority of certain taxing units to enter into an
agreement to abate ad valorem taxes imposed on an individual's
residence homestead that is located in a reinvestment zone.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Sections 312.002(a) and (f), Tax Code, are
(a)  A taxing unit may not enter into a tax abatement
agreement under this chapter and the governing body of a
municipality or county may not designate an area as a reinvestment
zone unless the governing body has established guidelines and
criteria governing tax abatement agreements by the taxing unit and
a resolution stating that the taxing unit elects to become eligible
to participate in tax abatement.  The guidelines applicable to
property other than property described by Section 312.009(b) or
312.211(a) must provide for the availability of tax abatement for
both new facilities and structures and for the expansion or
modernization of existing facilities and structures.
(f)  Except as otherwise provided by this subsection,
on [On] or after September 1, 2001, a school district may not enter
into a tax abatement agreement under this chapter. A school
district may enter into a tax abatement agreement under Section
SECTION 2.  Subchapter A, Chapter 312, Tax Code, is amended
by adding Section 312.009 to read as follows:
Sec. 312.009.  RESIDENCE HOMESTEAD TAX ABATEMENT AGREEMENT
BY TAXING UNIT OTHER THAN MUNICIPALITY OR COUNTY.  (a) In this
section, "residence homestead" has the meaning assigned by Section
(b)  This section applies only to a property:
(1)  that is located in a reinvestment zone designated
under this chapter by any taxing unit; and
(2)  that the property owner occupies as the property
owner's residence homestead for the first time not earlier than one
year before the date the property owner enters into a tax abatement
(c)  Notwithstanding any other provision of this chapter, a
taxing unit other than a municipality or county that is eligible to
enter into a tax abatement agreement under Section 312.002 or a
school district that meets the eligibility requirements of that
section for a taxing unit may enter into a tax abatement agreement
with the owner of a property to which this section applies to exempt
from taxation all or a portion of the value of the property:
(1)  for a period not to exceed 10 years; and
(2)  on the condition that the owner of the property
spend an amount specified in the agreement, that may not be less
than $500, to make improvements or repairs to the property during
the first year of the agreement.
(d)  An agreement made under this section must:
(1)  provide access to and authorize inspection of the
property by the taxing unit to ensure that the improvements or
repairs are made as provided by the agreement;
(2)  provide for recapturing property tax revenue lost
as a result of the agreement if the owner of the property fails to
make the improvements or repairs as provided by the agreement; and
(3)  provide that the governing body of the taxing unit
may cancel or modify the agreement if the property owner fails to
(e)  The expiration of the designation of a reinvestment zone
under this chapter does not affect an existing tax abatement
agreement entered into under this section.
SECTION 3.  This Act takes effect September 1, 2025.