(d) The governing body of the school district and the property owner shall enter into a written agreement for the implementation of the limitation on appraised value under this subchapter on the owner's qualified property. 2, eff. 1186 (H.B. (d) In the event of a casualty loss that prevents a person from complying with Subsection (a), the person may request and the comptroller may grant a waiver of the penalty imposed under Subsection (b). The most common capital asset was land, including both acreage and lots, reported by 365 EDCs. The purposes of this chapter are to: (1) encourage large-scale capital investments in this state; (2) create new, high-paying jobs in this state; (3) attract to this state large-scale businesses that are exploring opportunities to locate in other states or other countries; (4) enable state and local government officials and economic development professionals to compete with other states by authorizing economic development incentives that are comparable to incentives being offered to prospective employers by other states and to provide state and local officials with an effective means to attract large-scale investment; (5) strengthen and improve the overall performance of the economy of this state; (6) expand and enlarge the ad valorem tax base of this state; and. Average sales tax receipts per corporation increased from $1.2 million to $1.4 million. 313.031. 4, eff. In 2009, the act was recodified to Local Government Code Chapters 501 through 505. The city council must appoint a board of directors with at least five members to serve terms up to six years. Voter approval isnt required if the Type A corporation is located in a city that also operates a Type B corporation and has a population of 7,500 or less. In fiscal 2021, 164 or 80 percent of the 204 Type A corporations reporting owned capital assets, compared to 364 or 70 percent of the 521 Type B corporations. Sec. The comptroller shall conduct or contract with a third person to conduct the economic impact evaluation, which shall be completed and provided to the governing body of the school district, along with the comptroller's certificate or written explanation under Subsection (d), as soon as practicable but not later than the 90th day after the date the comptroller receives the application. Acts 2015, 84th Leg., R.S., Ch. Suppose you have an idea or a project that needs funding, GAD will guide you through the easy steps to take your grant idea to a completed application. My office has audited the New York City Economic Development Corporation's (EDC's) FM20-071A . 2994), Sec. 1310, Sec. 2712), Sec. The articles of incorporation must state that the corporation is governed by the Development . 17.002, eff. Secretary Scott Releases Phase 2 Report on Full Forensic Audit of 2020 General Election in Texas. Acts 2013, 83rd Leg., R.S., Ch. The comptroller shall notify the governing body of the school district of the comptroller's determination and provide the applicant an opportunity for a hearing before the determination becomes final. Information about how and where those dollars are spent, featuring easy-to-use tools to track state government spending and most local government entities. Open Meetings and Public . June 15, 2007. Comptroller.Texas.Gov is a one-stop center providing key statistics, economic news, forecasts and more. (a) Each year, the state auditor shall review at least three major agreements, as determined by the state auditor, under this chapter to determine whether: (1) each agreement accomplishes the purposes of this chapter as expressed in Section 313.003; (2) each agreement complies with the intent of the legislature in enacting this chapter as expressed in Section 313.004; and. (l) If a person files suit under Subsection (k) and the comptroller's determination to rescind the agreement is upheld on appeal, the person shall pay to the comptroller any tax that would have been due and payable to the school district during the pendency of the appeal, including statutory interest and penalties imposed on delinquent taxes under Sections 111.060 and 111.061. For example, Type A corporations boosted expenditures for administration by $2.4 million from fiscal 2020 to fiscal 2021, while Type B corporations reduced spending in this category by $6.6 million. June 30, 2022 . However, for direct business incentives, job training, debt service, capital costs and payments to taxing units, all corporations combined and Type A and Type B corporations separately spent less from fiscal 2020 to fiscal 2021. We've analyzed the impact of trade on Texas from a sampling of the state's ports of entry. Amended by Acts 2003, 78th Leg., ch. Combined, the category accounted for $135.6 million or 11 percent of revenue for Type A and B corporations in fiscal 2020. SAVING PROVISIONS. Sec. June 19, 2009. 943 (H.B. (a-1) This subchapter applies only to a school district that has territory in: (1) an area that qualifies as a strategic investment area; or, (A) that has a population of less than 50,000; and. SHORT TITLE. (f) Notwithstanding Subsections (c) and (d), if the comptroller makes a qualitative determination that other considerations associated with the project result in a net positive benefit to the state, the comptroller may issue the certificate. The governing body of a school district shall approve or disapprove an application not later than the 150th day after the date the application is filed, unless the economic impact evaluation has not been received or an extension is agreed to by the governing body and the applicant. Beginning in fiscal 2006, the Comptrollers office asked each corporation to report its year-end unrestricted fund balance or unrestricted retained earnings (EDC Report Data Dashboard). Fiscal 2016 and 2017 (PDF) Fiscal 2014 and 2015 (PDF) Contact Share/Connect Policies Also note that some corporations exceeding the statutory limit may have carried forward unused revenues budgeted for marketing and promotion from previous fiscal years. One factor affecting the rate of increase is competition from other types of sales tax. GENERAL PROVISIONS Sec. State law requires a city that adopts either or both to establish a corporation to administer and oversee the expenditure of the sales tax proceeds. With the recodification, EDCs formerly known as 4A and 4B corporations are now referred to as Type A and Type B corporations, respectively. 19, eff. The city council retains final oversight authority, though, and must approve the EDCs programs and expenditures. It's no secret rural areas are some of the most impacted when it comes to this issue. Please contact the Texas Comptroller's office if you have any further questions, by phone (844) 519-5676; or email, Transparency@cpa.texas.gov. . January 1, 2008. 313.051. January 1, 2008. (e) The agreement must describe with specificity the qualified investment that the person will make on or in connection with the person's qualified property that is subject to the limitation on appraised value under this subchapter. 3), Sec. For Type B corporations, revenue from bond proceeds/loans obtained exceeded other revenue by $4.3 million in fiscal 2020. The Comptroller's office may impose a penalty of up to $1,000 for officials who fail to attend the required training seminar. In fiscal 2020, the 207 Type A corporations reporting had combined fund balances of $707.6 million. Attorney General Opinion GA-0086 states that: In fiscal 2020 and 2021, most EDCs listed more than one primary economic development objective, with only slight variations in selections between fiscal years. 3676), Sec. This website provides a wealth of information on state and local finances and numerous other tools and data sources to support financial transparency and economic growth in communities throughout Texas. Explore regional occupational and industry information including emerging and evolving occupations, use analysis tools, view statistics and more. APPLICABILITY OF CHAPTER. In fiscal 2021, other revenue continued to rise to $159.2 million. 1186 (H.B. Each document or item of information must continue to be posted until the appraised value limitation expires. January 1, 2008. June 19, 2009. Explore economic development tools and partnerships to create and attract wealth to your region. 1186 (H.B. Find information about domestic and international business recruitment and corporate expansion efforts for Texas through the Office of the Governor's Economic Development & Tourism Division. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. Continuing education (CE) credit for these topics will be available only for live events and participation. Acceptable examples include but are not limited to non-annexation agreements and in-kind agreements; and Additionally, for Cities: Link to Texas Comptroller of Public Accounts Economic Development Corporation Report search tool: Before you or the GAD begin researching funding opportunities for your Department, identify the type of funding you need. (b-1) The comptroller shall promptly deliver a copy of the application to the Texas Education Agency. For more information about the authority and responsibilities of Type A and Type B corporations, refer to Comptroller publication #96-302, Economic Development Sales Tax, or contact the Comptrollers Data Analysis and Transparency Division at 844-519-5672. In 1997, the Texas Legislature added a provision to the Development Corporation Act that requires EDCs to report their financial activities to the Comptrollers office. Its often useful to examine expenditure categories as a percentage of total expenditures to see how categories are changing in relation to one another. 16(e), eff. 313.002. 1, eff. The Type A corporation essentially is limited to funding industrial and manufacturing facilities, research and development facilities, recycling facilities, distribution centers, small warehouse facilities, military facilities, job training, targeted infrastructure, regional or national headquarters facilities, business airport facilities and port-related facilities. Acts 2007, 80th Leg., R.S., Ch. (7) must be in a form approved by the comptroller. 1304 (H.B. Sec. Do you suspect an unemployment claim was filed using a stolen identity? TITLE 12. January 1, 2014. 7, eff. Generally, allowable Type B expenditures include those available under Type A as well as projects that contribute to the quality of life in the community, such as park-related facilities, professional and amateur sports and athletic facilities, tourism and entertainment facilities, affordable housing or other improvements that promote new or expanded business enterprises that create or retain primary jobs. Ownership of industrial parks/sites was much more common among Type A corporations (18 percent) compared to Type B corporations (8 percent). 3676), Sec. (b) The amount agreed to by the governing body of a school district under Subsection (a)(2) must be an amount in accordance with the following, according to the category established by Section 313.022 to which the school district belongs: (c) The limitation amounts listed in Subsection (b) are minimum amounts. SUBCHAPTER C. LIMITATION ON APPRAISED VALUE OF PROPERTY IN STRATEGIC INVESTMENT AREA OR CERTAIN RURAL SCHOOL DISTRICTS. September 1, 2009. 21.001(47), eff. 3676), Sec. the corporation's economic development objectives. If the applicant submits an economic analysis of the proposed project to the school district, the district shall submit a copy of the analysis to the comptroller. Type B corporations more commonly owned recreational facilities, equipment and other.. June 19, 2009. 10, eff. 1, eff. APPLICATION; ACTION ON APPLICATION. Sept. 1, 2003. 1186 (H.B. (c) A penalty imposed under Subsection (b) becomes delinquent if not paid on or before February 1 of the following tax year. It is an integral part of the annual audit of grants awarded to the City. 1304 (H.B. The presentation outlines: The characteristics of Type A and Type B EDCs How cities are authorized to adopt a sales tax to fund the corporations Projects EDCs are allowed to undertake A board of directors appointed by and serving at the pleasure of the citys governing body oversees the EDC. Local government code: 0005300 Acts 2017, 85th Leg., R.S., Ch. This represents the Comptroller's determination that Oxea Corp. (project) is reasonably . (i) that is located in an area designated as a reinvestment zone under Chapter 311 or 312 or as an enterprise zone under Chapter 2303, Government Code; (ii) on which a person proposes to construct a new building or erect or affix a new improvement that does not exist before the date the person submits a complete application for a limitation on appraised value under this subchapter; (iii) that is not subject to a tax abatement agreement entered into by a school district under Chapter 312; and. (B) approve only those applications for an ad valorem tax benefit provided by this chapter that: (ii) improve the local public education system; (iv) advance the economic development goals of this state; and. The tables below provide further guidance on properly completing this report. Development Corporations. Amended by Acts 2003, 78th Leg., ch. Texas Comptroller of Public Accounts Economic Development Corporation Report search tool; Applicable GASB guidance documents such as Statement No. Added by Acts 1995, 74th Leg., ch. Visit Texas Engineering Extension Service (h) A redetermination under Section 111.009 of an adverse determination under this section is a contested case as defined by Section 2001.003, Government Code. (a-2) Notwithstanding Subsection (a-1), if on January 1, 2002, this subchapter applied to a school district in whose territory is located a federal nuclear facility, this subchapter continues to apply to the school district regardless of whether the school district ceased or ceases to be described by Subsection (a-1) after that date. For expiration of this subchapter, see Sec. A methodology to allow comparisons of economic impact for different schedules of the addition of qualified investment or qualified property may be developed as part of the economic impact evaluation. If the school district maintains a generally accessible Internet website, the district shall provide on its website a link to the location of those documents posted on the comptroller's website in compliance with this subsection. Added by Acts 2013, 83rd Leg., R.S., Ch. (C) in connection with an advanced clean energy project, as defined by Section 382.003, Health and Safety Code, the first five tax years that begin on or after the third anniversary of the date the school district approves the property owner's application for a limitation on appraised value under this subchapter, unless a shorter time period is agreed to by the governing body of the school district and the property owner. Added by Acts 2013, 83rd Leg., R.S., Ch. EXPIRATION. Jan. 1, 2002. General Information Letters and Private Letter Rulings, State Tax Automated Research (STAR) System, Historically Underutilized Business (HUB), Vendor Performance Tracking System (VPTS), Texas Procurement and Contract Management Guide, Minnie Stevens Piper Foundation College Compendium, file a certificate of formation with the Secretary of State, Chapters 501-505 of the Local Government Code, Municipal Development Districts (MDDs) and Economic Development Corporations (EDCs) Webinar, When Tax Collection and Allocation Starts. Sec. The Texas Economic Development and Tourism Office may adopt rules to implement this subsection. Jane Nelson Officially Appointed 115th Texas Secretary of State. 3676), Sec. General Information Letters and Private Letter Rulings, State Tax Automated Research (STAR) System, Historically Underutilized Business (HUB), Vendor Performance Tracking System (VPTS), Texas Procurement and Contract Management Guide, Minnie Stevens Piper Foundation College Compendium, Chapter 312 Tax Abatements and Reinvestment Zones, Chapter 311 Tax Increment Reinvestment Zones (TIRZs), Municipal Development Districts (MDDs) and Economic Development Corporations (EDCs), Local & State Hotel Occupancy Tax (HOT) Programs, contact the Data Analysis and Transparency Division, Tax-Related State and Local Economic Development Programs, The required steps for creating a reinvestment zone before an abatement is approved, The criteria for creating a reinvestment zone, The purpose of an abatement: how it should work and what forms must be submitted, Tax increment financing (TIF) as an economic development tool local governments can use to pay for improvements that will draw private investment to their areas, How TIF redirects a portion of future ad valorem taxes within a defined geographic area, The criteria and steps for creating a TIRZ, Potential financing options for proposed public project improvements, The characteristics of Type A and Type B EDCs, How cities are authorized to adopt a sales tax to fund the corporations, How cities may hold an election to create an MDD, adopt a sales tax to fund it and use those funds for projects like convention centers, civic centers and auditoriums, How the local hotel occupancy tax promotes tourism and the convention and hotel industry, Who must charge this tax and how to implement it, How the tax is remitted and how revenue from this tax is to be used. Sec. (7) "Texas priority project" means a project on which the applicant has committed to expend or allocate a qualified investment of more than $1 billion. Sec. The State of Texas provides a number of local economic Development programs for Texas communities. According to a media report dated November 5, 2012, Oxea Corp. was in the final stages of completing a feasibility study of plant expansion ECONOMIC IMPACT EVALUATION. 8, eff. 3732), Sec. 313.027. (b) The report may not include information that is confidential by law. Sec. (1) "Manufacturing" means an establishment primarily engaged in activities described in sectors 31-33 of the 2007 North American Industry Classification System. (b) create at least 25 new qualifying jobs; (B) the new building or other new improvement described by Paragraph (A)(ii); and. 3676), Sec. Information in the custody of a school district or the comptroller if the governing body approves the application is not confidential under this section. 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