TAX CODETITLE 3. LOCAL TAXATIONSUBTITLE B. SPECIAL PROPERTY TAX PROVISIONSCHAPTER 313. TEXAS ECONOMIC DEVELOPMENT ACTSUBCHAPTER A. GENERAL PROVISIONSSec. 313.001. SHORT TITLE. This chapter may be cited as the Texas Economic Development Act.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.002. FINDINGS. The legislature finds that:(1) many states have enacted aggressive economic development laws designed to attract large employers, create jobs, and strengthen their economies;(2) the State of Texas has slipped in its national ranking each year between 1993 and 2000 in terms of attracting major new manufacturing facilities to this state;(3) a significant portion of the Texas economy continues to be based in the manufacturing industry, and the continued growth and overall health of the manufacturing sector serves the Texas economy well;(4) without a vibrant, strong manufacturing sector, other sectors of the economy, especially the state's service sector, will also suffer adverse consequences; and(5) the current property tax system of this state does not favor capital-intensive businesses such as manufacturers.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.003. PURPOSES. The purposes of this chapter are to:(1) encourage large-scale capital investments in this state, especially in school districts that have an ad valorem tax base that is less than the statewide average ad valorem tax base of school districts in this state;(2) create new, high-paying jobs in this state;(3) attract to this state new, large-scale businesses that are exploring opportunities to locate in other states or other countries;(4) enable local government officials and economic development professionals to compete with other states by authorizing economic development incentives that meet or exceed incentives being offered to prospective employers by other states and to provide 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 property tax base of this state; and(7) enhance this state's economic development efforts by providing school districts with an effective local economic development option.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.004. LEGISLATIVE INTENT. It is the intent of the legislature in enacting this chapter that:(1) economic development decisions should occur at the local level and be consistent with identifiable statewide economic development goals;(2) this chapter should not be construed or interpreted to allow:(A) property owners to pool investments to create sufficiently large investments to qualify for an ad valorem tax benefit or financial benefit provided by this chapter;(B) an applicant for an ad valorem tax benefit or financial benefit provided by this chapter to assert that jobs will be eliminated if certain investments are not made if the assertion is not true; or(C) a sole proprietorship, partnership, or limited liability partnership to receive an ad valorem tax benefit or financial benefit provided by this chapter; and(3) in implementing this chapter, school districts should:(A) strictly interpret the criteria and selection guidelines provided by this chapter; and(B) approve only those applications for an ad valorem tax benefit or financial benefit provided by this chapter that:(i) enhance the local community;(ii) improve the local public education system;(iii) create high-paying jobs; and(iv) advance the economic development goals of this state as identified by the Texas Strategic Economic Development Planning Commission.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.005. DEFINITIONS. Unless this chapter defines a word or phrase used in this chapter, Section 1.04 or any other section of Title 1 or this title that defines the word or phrase or ascribes a meaning to the word or phrase applies to the word or phrase used in this chapter.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.006. IMPOSITION OF IMPACT FEE. (a) In this section, "impact fee" means a charge or assessment imposed against a qualified property, as defined by Section 313.021, in order to generate revenue for funding or recouping the costs of capital improvements or facility expansions for water, wastewater, or storm water services or for roads necessitated by or attributable to property that receives a limitation on appraised value under this chapter.(b) Notwithstanding any other law, including Chapter 395, Local Government Code, a municipality or county may impose and collect from the owner of a qualified property a reasonable impact fee under this section to pay for the cost of providing improvements associated with or attributable to property that receives a limitation on appraised value under this chapter.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.007. EXPIRATION. Subchapters B, C, and D expire December 31, 2014.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.Amended by: Acts 2007, 80th Leg., R.S., Ch. 864, Sec. 1, eff. June 15, 2007.Acts 2009, 81st Leg., R.S., Ch. 1186, Sec. 1, eff. June 19, 2009.
Sec. 313.008. REPORT ON COMPLIANCE WITH ENERGY-RELATED AGREEMENTS. (a) Before the beginning of each regular session of the legislature, the comptroller shall submit to the lieutenant governor, the speaker of the house of representatives, and each member of the legislature a report assessing the progress of each agreement entered into under this chapter utilizing data certified by agreement recipients, on each agreement entered into under this chapter involving energy-related projects, including wind generation, ethanol production, liquefied natural gas terminals, low sulfur diesel production, refinery cogeneration, and nuclear energy production. The report must state for each agreement:(1) the number of qualifying jobs each recipient of a limitation on appraised value committed to create;(2) the number of qualifying jobs each recipient created;(3) the median wage of the new jobs each recipient created;(4) the amount of the qualified investment each recipient committed to expend or allocate per project;(5) the amount of the qualified investment each recipient expended or allocated per project;(6) the market value of the qualified property of each recipient as established by the local appraiser;(7) the limitation on appraised value for the qualified property of each recipient;(8) the dollar amount of the ad valorem taxes that would have been imposed on the market value of the qualified property;(9) the dollar amount of the ad valorem taxes imposed on the qualified property;(10) the number of new jobs created by each recipient in each sector of the North American Industry Classification System (NAICS); and(11) of the number of new jobs each recipient created, the number of positions created that provide health benefits for employees.(b) The report may not include information that is made confidential by law.(c) The comptroller may require a recipient to submit, on a form provided by the comptroller, information required to complete the report.
Added by Acts 2007, 80th Leg., R.S., Ch. 939, Sec. 17, eff. September 1, 2007.
Sec. 313.009. REPORT ON COMPLIANCE WITH AGREEMENTS. (a) Before the beginning of each regular session of the legislature, the comptroller shall submit to the lieutenant governor, the speaker of the house of representatives, and each member of the legislature a report assessing the progress of each agreement entered into under this chapter. The report must be based on data certified to the comptroller by each recipient of a limitation on appraised value under this chapter and state for each agreement:(1) the number of qualifying jobs each recipient of a limitation on appraised value committed to create;(2) the number of qualifying jobs each recipient created;(3) the median wage of the new jobs each recipient created;(4) the amount of the qualified investment each recipient committed to expend or allocate per project;(5) the amount of the qualified investment each recipient expended or allocated per project;(6) the market value of the qualified property of each recipient as determined by the applicable chief appraiser;(7) the limitation on appraised value for the qualified property of each recipient;(8) the dollar amount of the taxes that would have been imposed on the market value of the qualified property if the property had not received a limitation on appraised value;(9) the dollar amount of the taxes imposed on the qualified property;(10) the number of new jobs created by each recipient in each sector of the North American Industry Classification System; and(11) of the number of new jobs each recipient created, the number of jobs created that provide health benefits for employees.(b) The report may not include information that is made confidential by law.(c) The comptroller may require a recipient to submit, on a form the comptroller provides, information required to complete the report.
Added by Acts 2007, 80th Leg., R.S., Ch. 1270, Sec. 6, eff. October 1, 2007.Renumbered from Tax Code, Section 313.008 by Acts 2009, 81st Leg., R.S., Ch. 87, Sec. 27.001(88), eff. September 1, 2009.
SUBCHAPTER B. LIMITATION ON APPRAISED VALUE OF CERTAIN PROPERTY USED TO CREATE JOBSFor expiration of this subchapter, see Sec. 313.007Sec. 313.021. DEFINITIONS. In this subchapter:(1) "Qualified investment" means:(A) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2002, without regard to whether the property is affixed to or incorporated into real property, and that is described as Section 1245 property by Section 1245(a), Internal Revenue Code of 1986;(B) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2002, without regard to whether the property is affixed to or incorporated into real property, and that is used in connection with the manufacturing, processing, or fabrication in a cleanroom environment of a semiconductor product, without regard to whether the property is actually located in the cleanroom environment, including:(i) integrated systems, fixtures, and piping;(ii) all property necessary or adapted to reduce contamination or to control airflow, temperature, humidity, chemical purity, or other environmental conditions or manufacturing tolerances; and(iii) production equipment and machinery, moveable cleanroom partitions, and cleanroom lighting;(C) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2002, without regard to whether the property is affixed to or incorporated into real property, and that is used in connection with the operation of a nuclear electric power generation facility, including:(i) property, including pressure vessels, pumps, turbines, generators, and condensers, used to produce nuclear electric power; and(ii) property and systems necessary to control radioactive contamination;(D) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2002, without regard to whether the property is affixed to or incorporated into real property, and that is used in connection with operating an integrated gasification combined cycle electric generation facility, including:(i) property used to produce electric power by means of a combined combustion turbine and steam turbine application using synthetic gas or another product produced by the gasification of coal or another carbon-based feedstock; or(ii) property used in handling materials to be used as feedstock for gasification or used in the gasification process to produce synthetic gas or another carbon-based feedstock for use in the production of electric power in the manner described by Subparagraph (i);(E) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2010, without regard to whether the property is affixed to or incorporated into real property, and that is used in connection with operating an advanced clean energy project, as defined by Section 382.003, Health and Safety Code; or(F) a building or a permanent, nonremovable component of a building that is built or constructed during the applicable qualifying time period that begins on or after January 1, 2002, and that houses tangible personal property described by Paragraph (A), (B), (C), (D), or (E).(2) "Qualified property" means:(A) land:(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 applies 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(iv) on which, in connection with the new building or new improvement described by Subparagraph (ii), the owner or lessee of, or the holder of another possessory interest in, the land proposes to:(a) make a qualified investment in an amount equal to at least the minimum amount required by Section 313.023; and(b) create at least 25 new jobs;(B) the new building or other new improvement described by Paragraph (A)(ii); and(C) tangible personal property that:(i) is not subject to a tax abatement agreement entered into by a school district under Chapter 312; and(ii) except for new equipment described in Section 151.318(q) or (q-1), is first placed in service in the new building or in or on the new improvement described by Paragraph (A)(ii), or on the land on which that new building or new improvement is located, if the personal property is ancillary and necessary to the business conducted in that new building or in or on that new improvement.(3) "Qualifying job" means a permanent full-time job that:(A) requires at least 1,600 hours of work a year;(B) is not transferred from one area in this state to another area in this state;(C) is not created to replace a previous employee;(D) is covered by a group health benefit plan for which the business offers to pay at least 80 percent of the premiums or other charges assessed for employee-only coverage under the plan, regardless of whether an employee may voluntarily waive the coverage; and(E) pays at least 110 percent of:(i) the county average weekly wage for manufacturing jobs in the county where the job is located; or(ii) the county average weekly wage for all jobs in the county where the job is located, if the property owner creates more than 1,000 jobs in that county.(4) "Qualifying time period" means:(A) the period that begins on the date that a person's application for a limitation on appraised value under this subchapter is approved by the governing body of the school district and ends on December 31 of the second tax year that begins after that date, except as provided by Paragraph (B) or (C) of this subdivision or Section 313.027(h);(B) in connection with a nuclear electric power generation facility, the first seven 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; or(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.(5) "County average weekly wage for manufacturing jobs" means:(A) the average weekly wage in a county for manufacturing jobs during the most recent four quarterly periods for which data is available at the time a person submits an application for a limitation on appraised value under this subchapter, as computed by the Texas Workforce Commission; or(B) the average weekly wage for manufacturing jobs in the region designated for the regional planning commission, council of governments, or similar regional planning agency created under Chapter 391, Local Government Code, in which the county is located during the most recent four quarterly periods for which data is available at the time a person submits an application for a limitation on appraised value under this subchapter, as computed by the Texas Workforce Commission.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002. Amended by Acts 2003, 78th Leg., ch. 1310, Sec. 113, eff. June 20, 2003.Amended by: Acts 2007, 80th Leg., R.S., Ch. 1262, Sec. 2, eff. June 15, 2007.Acts 2009, 81st Leg., R.S., Ch. 1109, Sec. 6, eff. September 1, 2009.Acts 2009, 81st Leg., R.S., Ch. 1186, Sec. 2, eff. June 19, 2009.
Sec. 313.022. APPLICABILITY; CATEGORIZATION OF SCHOOL DISTRICTS. (a) This subchapter applies to each school district in this state other than a school district to which Subchapter C applies.(b) For purposes of determining the required minimum amount of a qualified investment under Section 313.021(2)(A)(iv)(a), and the minimum amount of a limitation on appraised value under Section 313.027(b), school districts to which this subchapter applies are categorized according to the taxable value of property in the district for the preceding tax year determined under Subchapter M, Chapter 403, Government Code, as follows:
CATEGORY
TAXABLE VALUE OF PROPERTY
I
$10 billion or more
II
$1 billion or more but less than $10 billion
III
$500 million or more but less than $1 billion
IV
$100 million or more but less than $500 million
V
less than $100 million
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1,
2002.
Sec. 313.023. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. For each
category of school district established by Section 313.022, the
minimum amount of a qualified investment under Section
313.021(2)(A)(iv)(a) is as follows:
CATEGORY
MINIMUM QUALIFIED INVESTMENT
I
$100 million
II
$80 million
III
$60 million
IV
$40 million
V
$20 million
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1,
2002.
Sec. 313.024. ELIGIBLE PROPERTY. (a) This subchapter and
Subchapters C and D apply only to property owned by an entity to
which Chapter 171 applies.
(b) To be eligible for a limitation on appraised value under
this subchapter, the entity must use the property in connection
with:
(1) manufacturing;
(2) research and development;
(3) a clean coal project, as defined by Section 5.001, Water
Code;
(4) an advanced clean energy project, as defined by Section
382.003, Health and Safety Code;
(5) renewable energy electric generation;
(6) electric power generation using integrated gasification
combined cycle technology;
(7) nuclear electric power generation; or
(8) a computer center primarily used in connection with one or
more activities described by Subdivisions (1) through (7)
conducted by the entity.
(c) For purposes of determining an applicant's eligibility for a
limitation under this subchapter:
(1) the land on which a building or component of a building
described by Section 313.021(1)(E) is located is not considered a
qualified investment;
(2) property that is leased under a capitalized lease may be
considered a qualified investment;
(3) property that is leased under an operating lease may not be
considered a qualified investment; and
(4) property that is owned by a person other than the applicant
and that is pooled or proposed to be pooled with property owned
by the applicant may not be included in determining the amount of
the applicant's qualifying investment.
(d) To be eligible for a limitation on appraised value under
this subchapter, at least 80 percent of all the new jobs created
by the property owner must be qualifying jobs as defined by
Section 313.021(3).
(e) In this section:
(1) "Manufacturing" means an establishment primarily engaged in
activities described in sectors 31-33 of the 2007 North American
Industry Classification System.
(2) "Renewable energy electric generation" means an
establishment primarily engaged in activities described in
category 221119 of the 1997 North American Industry
Classification System.
(3) "Integrated gasification combined cycle technology" means
technology used to produce electricity in a combined combustion
turbine and steam turbine application using synthetic gas or
another product produced from the gasification of coal or another
carbon-based feedstock, including related activities such as
materials-handling and gasification of coal or another
carbon-based feedstock.
(4) "Nuclear electric power generation" means activities
described in category 221113 of the 2002 North American Industry
Classification System.
(5) "Research and development" means an establishment primarily
engaged in activities described in category 541710 of the 2002
North American Industry Classification System.
(6) "Computer center" means an establishment primarily engaged
in providing electronic data processing and information storage.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1,
2002.
Amended by:
Acts 2005, 79th Leg., Ch.
1097, Sec. 5, eff. June 18, 2005.
Acts 2006, 79th Leg., 3rd C.S., Ch.
1, Sec. 16(b), eff. January 1, 2008.
Acts 2006, 79th Leg., 3rd C.S., Ch.
1, Sec. 16(c), eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch.
1262, Sec. 3, eff. June 15, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1262, Sec. 4, eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch.
1262, Sec. 5, eff. June 15, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1277, Sec. 10, eff. January 1, 2008.
Acts 2009, 81st Leg., R.S., Ch.
1186, Sec. 3, eff. June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch.
1186, Sec. 4, eff. June 19, 2009.
Sec. 313.025. APPLICATION; ACTION ON APPLICATION. (a) The
owner or lessee of, or the holder of another possessory interest
in, any qualified property described by Section 313.021(2)(A),
(B), or (C) may apply to the governing body of the school
district in which the property is located for a limitation on the
appraised value for school district maintenance and operations ad
valorem tax purposes of the person's qualified property. An
application must be made on the form prescribed by the
comptroller and include the information required by the
comptroller, and it must be accompanied by:
(1) the application fee established by the governing body of the
school district;
(2) information sufficient to show that the real and personal
property identified in the application as qualified property
meets the applicable criteria established by Section 313.021(2);
and
(3) information relating to each applicable criterion listed in
Section 313.026.
(a-1) Within seven days of the receipt of each document, the
school district shall submit to the comptroller a copy of the
application and the agreement between the applicant and the
school district. If an economic analysis of the proposed project
is submitted to the school district, the district shall submit a
copy of the analysis to the comptroller. In addition, the school
district shall submit to the comptroller any subsequent revision
of or amendment to any of those documents within seven days of
its receipt. The comptroller shall publish each document
received from the school district under this subsection on the
comptroller's Internet website. 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. This subsection does not require the comptroller to
post information that is confidential under Section 313.028.
(b) The governing body of a school district is not required to
consider an application for a limitation on appraised value that
is filed with the governing body under Subsection (a). If the
governing body of the school district does elect to consider an
application, the governing body shall deliver three copies of the
application to the comptroller and request that the comptroller
provide an economic impact evaluation of the application to the
school district. Except as provided by Subsection (b-1), the
comptroller shall conduct or contract with a third person to
conduct the evaluation, which shall be completed and provided to
the governing body of the school district as soon as practicable.
The governing body shall provide to the comptroller or third
person any requested information. 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. The
governing body shall provide a copy of the evaluation to the
applicant on request. The comptroller may charge and collect a
fee sufficient to cover the costs of providing the economic
impact evaluation. The governing body of a school district shall
approve or disapprove an application before the 151st 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.
(b-1) The comptroller shall indicate on one copy of the
application the date the comptroller received the application and
deliver that copy to the Texas Education Agency. The Texas
Education Agency shall determine the effect that the applicant's
proposal will have on the number or size of the school district's
instructional facilities, as required to be included in the
economic impact evaluation by Section 313.026(a)(9), and submit a
written report containing the agency's determination to the
comptroller. The governing body of the school district shall
provide any requested information to the Texas Education Agency.
Not later than the 45th day after the date the application
indicates that the comptroller received the application, the
Texas Education Agency shall make the required determination and
submit the agency's written report to the comptroller. A third
person contracted by the comptroller to conduct an economic
impact evaluation of an application is not required to make a
determination that the Texas Education Agency is required to make
and report to the comptroller under this subsection.
(c) In determining whether to grant an application, the
governing body of the school district is entitled to request and
receive assistance from:
(1) the comptroller;
(2) the Texas Department of Economic Development;
(3) the Texas Workforce Investment Council; and
(4) the Texas Workforce Commission.
(d) Before the 91st day after the date the comptroller receives
the copy of the application, the comptroller shall submit a
recommendation to the governing body of the school district as to
whether the application should be approved or disapproved.
(d-1) The governing body of a school district may approve an
application that the comptroller has recommended should be
disapproved only if:
(1) the governing body holds a public hearing the sole purpose
of which is to consider the application and the comptroller's
recommendation; and
(2) at a subsequent meeting of the governing body held after the
date of the public hearing, at least two-thirds of the members of
the governing body vote to approve the application.
(e) Before approving or disapproving an application under this
subchapter that the governing body elects to consider, the
governing body of the school district must make a written finding
as to each criterion listed in Section 313.026. The governing
body shall deliver a copy of those findings to the applicant.
(f) The governing body may approve an application only if the
governing body finds that the information in the application is
true and correct, finds that the applicant is eligible for the
limitation on the appraised value of the person's qualified
property, and determines that granting the application is in the
best interest of the school district and this state.
(f-1) Notwithstanding any other provision of this chapter to the
contrary, including Section 313.003(2) or 313.004(3)(A) or
(B)(iii), the governing body of a school district may waive the
new jobs creation requirement in Section 313.021(2)(A)(iv)(b) or
313.051(b) and approve an application if the governing body makes
a finding that the jobs creation requirement exceeds the industry
standard for the number of employees reasonably necessary for the
operation of the facility of the property owner that is described
in the application.
(g) The Texas Department of Economic Development or its
successor may recommend that a school district grant a person a
limitation on appraised value under this chapter. In determining
whether to grant an application, the governing body of the school
district shall consider any recommendation made by the Texas
Department of Economic Development or its successor.
(h) After receiving a copy of the application, the comptroller
shall determine whether the property meets the requirements of
Section 313.024 for eligibility for a limitation on appraised
value under this subchapter. 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. A hearing under
this subsection is a contested case hearing and shall be
conducted by the State Office of Administrative Hearings in the
manner provided by Section 2003.101, Government Code. The
applicant has the burden of proof on each issue in the hearing.
The applicant may seek judicial review of the comptroller's
determination in a Travis County district court under the
substantial evidence rule as provided by Subchapter G, Chapter
2001, Government Code.
(i) If the comptroller's determination under Subsection (h) that
the property does not meet the requirements of Section 313.024
for eligibility for a limitation on appraised value under this
subchapter becomes final, the comptroller is not required to
provide an economic impact evaluation of the application or to
submit a recommendation to the school district as to whether the
application should be approved or disapproved, and the governing
body of the school district may not grant the application.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1,
2002. Amended by Acts 2003, 78th Leg., ch. 818, Sec. 6.11, eff.
TAX CODETITLE 3. LOCAL TAXATIONSUBTITLE B. SPECIAL PROPERTY TAX PROVISIONSCHAPTER 313. TEXAS ECONOMIC DEVELOPMENT ACTSUBCHAPTER A. GENERAL PROVISIONSSec. 313.001. SHORT TITLE. This chapter may be cited as the Texas Economic Development Act.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.002. FINDINGS. The legislature finds that:(1) many states have enacted aggressive economic development laws designed to attract large employers, create jobs, and strengthen their economies;(2) the State of Texas has slipped in its national ranking each year between 1993 and 2000 in terms of attracting major new manufacturing facilities to this state;(3) a significant portion of the Texas economy continues to be based in the manufacturing industry, and the continued growth and overall health of the manufacturing sector serves the Texas economy well;(4) without a vibrant, strong manufacturing sector, other sectors of the economy, especially the state's service sector, will also suffer adverse consequences; and(5) the current property tax system of this state does not favor capital-intensive businesses such as manufacturers.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.003. PURPOSES. The purposes of this chapter are to:(1) encourage large-scale capital investments in this state, especially in school districts that have an ad valorem tax base that is less than the statewide average ad valorem tax base of school districts in this state;(2) create new, high-paying jobs in this state;(3) attract to this state new, large-scale businesses that are exploring opportunities to locate in other states or other countries;(4) enable local government officials and economic development professionals to compete with other states by authorizing economic development incentives that meet or exceed incentives being offered to prospective employers by other states and to provide 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 property tax base of this state; and(7) enhance this state's economic development efforts by providing school districts with an effective local economic development option.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.004. LEGISLATIVE INTENT. It is the intent of the legislature in enacting this chapter that:(1) economic development decisions should occur at the local level and be consistent with identifiable statewide economic development goals;(2) this chapter should not be construed or interpreted to allow:(A) property owners to pool investments to create sufficiently large investments to qualify for an ad valorem tax benefit or financial benefit provided by this chapter;(B) an applicant for an ad valorem tax benefit or financial benefit provided by this chapter to assert that jobs will be eliminated if certain investments are not made if the assertion is not true; or(C) a sole proprietorship, partnership, or limited liability partnership to receive an ad valorem tax benefit or financial benefit provided by this chapter; and(3) in implementing this chapter, school districts should:(A) strictly interpret the criteria and selection guidelines provided by this chapter; and(B) approve only those applications for an ad valorem tax benefit or financial benefit provided by this chapter that:(i) enhance the local community;(ii) improve the local public education system;(iii) create high-paying jobs; and(iv) advance the economic development goals of this state as identified by the Texas Strategic Economic Development Planning Commission.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.005. DEFINITIONS. Unless this chapter defines a word or phrase used in this chapter, Section 1.04 or any other section of Title 1 or this title that defines the word or phrase or ascribes a meaning to the word or phrase applies to the word or phrase used in this chapter.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.006. IMPOSITION OF IMPACT FEE. (a) In this section, "impact fee" means a charge or assessment imposed against a qualified property, as defined by Section 313.021, in order to generate revenue for funding or recouping the costs of capital improvements or facility expansions for water, wastewater, or storm water services or for roads necessitated by or attributable to property that receives a limitation on appraised value under this chapter.(b) Notwithstanding any other law, including Chapter 395, Local Government Code, a municipality or county may impose and collect from the owner of a qualified property a reasonable impact fee under this section to pay for the cost of providing improvements associated with or attributable to property that receives a limitation on appraised value under this chapter.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.007. EXPIRATION. Subchapters B, C, and D expire December 31, 2014.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.Amended by: Acts 2007, 80th Leg., R.S., Ch. 864, Sec. 1, eff. June 15, 2007.Acts 2009, 81st Leg., R.S., Ch. 1186, Sec. 1, eff. June 19, 2009.
Sec. 313.008. REPORT ON COMPLIANCE WITH ENERGY-RELATED AGREEMENTS. (a) Before the beginning of each regular session of the legislature, the comptroller shall submit to the lieutenant governor, the speaker of the house of representatives, and each member of the legislature a report assessing the progress of each agreement entered into under this chapter utilizing data certified by agreement recipients, on each agreement entered into under this chapter involving energy-related projects, including wind generation, ethanol production, liquefied natural gas terminals, low sulfur diesel production, refinery cogeneration, and nuclear energy production. The report must state for each agreement:(1) the number of qualifying jobs each recipient of a limitation on appraised value committed to create;(2) the number of qualifying jobs each recipient created;(3) the median wage of the new jobs each recipient created;(4) the amount of the qualified investment each recipient committed to expend or allocate per project;(5) the amount of the qualified investment each recipient expended or allocated per project;(6) the market value of the qualified property of each recipient as established by the local appraiser;(7) the limitation on appraised value for the qualified property of each recipient;(8) the dollar amount of the ad valorem taxes that would have been imposed on the market value of the qualified property;(9) the dollar amount of the ad valorem taxes imposed on the qualified property;(10) the number of new jobs created by each recipient in each sector of the North American Industry Classification System (NAICS); and(11) of the number of new jobs each recipient created, the number of positions created that provide health benefits for employees.(b) The report may not include information that is made confidential by law.(c) The comptroller may require a recipient to submit, on a form provided by the comptroller, information required to complete the report.
Added by Acts 2007, 80th Leg., R.S., Ch. 939, Sec. 17, eff. September 1, 2007.
Sec. 313.009. REPORT ON COMPLIANCE WITH AGREEMENTS. (a) Before the beginning of each regular session of the legislature, the comptroller shall submit to the lieutenant governor, the speaker of the house of representatives, and each member of the legislature a report assessing the progress of each agreement entered into under this chapter. The report must be based on data certified to the comptroller by each recipient of a limitation on appraised value under this chapter and state for each agreement:(1) the number of qualifying jobs each recipient of a limitation on appraised value committed to create;(2) the number of qualifying jobs each recipient created;(3) the median wage of the new jobs each recipient created;(4) the amount of the qualified investment each recipient committed to expend or allocate per project;(5) the amount of the qualified investment each recipient expended or allocated per project;(6) the market value of the qualified property of each recipient as determined by the applicable chief appraiser;(7) the limitation on appraised value for the qualified property of each recipient;(8) the dollar amount of the taxes that would have been imposed on the market value of the qualified property if the property had not received a limitation on appraised value;(9) the dollar amount of the taxes imposed on the qualified property;(10) the number of new jobs created by each recipient in each sector of the North American Industry Classification System; and(11) of the number of new jobs each recipient created, the number of jobs created that provide health benefits for employees.(b) The report may not include information that is made confidential by law.(c) The comptroller may require a recipient to submit, on a form the comptroller provides, information required to complete the report.
Added by Acts 2007, 80th Leg., R.S., Ch. 1270, Sec. 6, eff. October 1, 2007.Renumbered from Tax Code, Section 313.008 by Acts 2009, 81st Leg., R.S., Ch. 87, Sec. 27.001(88), eff. September 1, 2009.
SUBCHAPTER B. LIMITATION ON APPRAISED VALUE OF CERTAIN PROPERTY USED TO CREATE JOBSFor expiration of this subchapter, see Sec. 313.007Sec. 313.021. DEFINITIONS. In this subchapter:(1) "Qualified investment" means:(A) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2002, without regard to whether the property is affixed to or incorporated into real property, and that is described as Section 1245 property by Section 1245(a), Internal Revenue Code of 1986;(B) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2002, without regard to whether the property is affixed to or incorporated into real property, and that is used in connection with the manufacturing, processing, or fabrication in a cleanroom environment of a semiconductor product, without regard to whether the property is actually located in the cleanroom environment, including:(i) integrated systems, fixtures, and piping;(ii) all property necessary or adapted to reduce contamination or to control airflow, temperature, humidity, chemical purity, or other environmental conditions or manufacturing tolerances; and(iii) production equipment and machinery, moveable cleanroom partitions, and cleanroom lighting;(C) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2002, without regard to whether the property is affixed to or incorporated into real property, and that is used in connection with the operation of a nuclear electric power generation facility, including:(i) property, including pressure vessels, pumps, turbines, generators, and condensers, used to produce nuclear electric power; and(ii) property and systems necessary to control radioactive contamination;(D) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2002, without regard to whether the property is affixed to or incorporated into real property, and that is used in connection with operating an integrated gasification combined cycle electric generation facility, including:(i) property used to produce electric power by means of a combined combustion turbine and steam turbine application using synthetic gas or another product produced by the gasification of coal or another carbon-based feedstock; or(ii) property used in handling materials to be used as feedstock for gasification or used in the gasification process to produce synthetic gas or another carbon-based feedstock for use in the production of electric power in the manner described by Subparagraph (i);(E) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2010, without regard to whether the property is affixed to or incorporated into real property, and that is used in connection with operating an advanced clean energy project, as defined by Section 382.003, Health and Safety Code; or(F) a building or a permanent, nonremovable component of a building that is built or constructed during the applicable qualifying time period that begins on or after January 1, 2002, and that houses tangible personal property described by Paragraph (A), (B), (C), (D), or (E).(2) "Qualified property" means:(A) land:(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 applies 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(iv) on which, in connection with the new building or new improvement described by Subparagraph (ii), the owner or lessee of, or the holder of another possessory interest in, the land proposes to:(a) make a qualified investment in an amount equal to at least the minimum amount required by Section 313.023; and(b) create at least 25 new jobs;(B) the new building or other new improvement described by Paragraph (A)(ii); and(C) tangible personal property that:(i) is not subject to a tax abatement agreement entered into by a school district under Chapter 312; and(ii) except for new equipment described in Section 151.318(q) or (q-1), is first placed in service in the new building or in or on the new improvement described by Paragraph (A)(ii), or on the land on which that new building or new improvement is located, if the personal property is ancillary and necessary to the business conducted in that new building or in or on that new improvement.(3) "Qualifying job" means a permanent full-time job that:(A) requires at least 1,600 hours of work a year;(B) is not transferred from one area in this state to another area in this state;(C) is not created to replace a previous employee;(D) is covered by a group health benefit plan for which the business offers to pay at least 80 percent of the premiums or other charges assessed for employee-only coverage under the plan, regardless of whether an employee may voluntarily waive the coverage; and(E) pays at least 110 percent of:(i) the county average weekly wage for manufacturing jobs in the county where the job is located; or(ii) the county average weekly wage for all jobs in the county where the job is located, if the property owner creates more than 1,000 jobs in that county.(4) "Qualifying time period" means:(A) the period that begins on the date that a person's application for a limitation on appraised value under this subchapter is approved by the governing body of the school district and ends on December 31 of the second tax year that begins after that date, except as provided by Paragraph (B) or (C) of this subdivision or Section 313.027(h);(B) in connection with a nuclear electric power generation facility, the first seven 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; or(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.(5) "County average weekly wage for manufacturing jobs" means:(A) the average weekly wage in a county for manufacturing jobs during the most recent four quarterly periods for which data is available at the time a person submits an application for a limitation on appraised value under this subchapter, as computed by the Texas Workforce Commission; or(B) the average weekly wage for manufacturing jobs in the region designated for the regional planning commission, council of governments, or similar regional planning agency created under Chapter 391, Local Government Code, in which the county is located during the most recent four quarterly periods for which data is available at the time a person submits an application for a limitation on appraised value under this subchapter, as computed by the Texas Workforce Commission.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002. Amended by Acts 2003, 78th Leg., ch. 1310, Sec. 113, eff. June 20, 2003.Amended by: Acts 2007, 80th Leg., R.S., Ch. 1262, Sec. 2, eff. June 15, 2007.Acts 2009, 81st Leg., R.S., Ch. 1109, Sec. 6, eff. September 1, 2009.Acts 2009, 81st Leg., R.S., Ch. 1186, Sec. 2, eff. June 19, 2009.
Sec. 313.022. APPLICABILITY; CATEGORIZATION OF SCHOOL DISTRICTS. (a) This subchapter applies to each school district in this state other than a school district to which Subchapter C applies.(b) For purposes of determining the required minimum amount of a qualified investment under Section 313.021(2)(A)(iv)(a), and the minimum amount of a limitation on appraised value under Section 313.027(b), school districts to which this subchapter applies are categorized according to the taxable value of property in the district for the preceding tax year determined under Subchapter M, Chapter 403, Government Code, as follows:
CATEGORY
TAXABLE VALUE OF PROPERTY
I
$10 billion or more
II
$1 billion or more but less than $10 billion
III
$500 million or more but less than $1 billion
IV
$100 million or more but less than $500 million
V
less than $100 million
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1,
2002.
Sec. 313.023. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. For each
category of school district established by Section 313.022, the
minimum amount of a qualified investment under Section
313.021(2)(A)(iv)(a) is as follows:
CATEGORY
MINIMUM QUALIFIED INVESTMENT
I
$100 million
II
$80 million
III
$60 million
IV
$40 million
V
$20 million
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1,
2002.
Sec. 313.024. ELIGIBLE PROPERTY. (a) This subchapter and
Subchapters C and D apply only to property owned by an entity to
which Chapter 171 applies.
(b) To be eligible for a limitation on appraised value under
this subchapter, the entity must use the property in connection
with:
(1) manufacturing;
(2) research and development;
(3) a clean coal project, as defined by Section 5.001, Water
Code;
(4) an advanced clean energy project, as defined by Section
382.003, Health and Safety Code;
(5) renewable energy electric generation;
(6) electric power generation using integrated gasification
combined cycle technology;
(7) nuclear electric power generation; or
(8) a computer center primarily used in connection with one or
more activities described by Subdivisions (1) through (7)
conducted by the entity.
(c) For purposes of determining an applicant's eligibility for a
limitation under this subchapter:
(1) the land on which a building or component of a building
described by Section 313.021(1)(E) is located is not considered a
qualified investment;
(2) property that is leased under a capitalized lease may be
considered a qualified investment;
(3) property that is leased under an operating lease may not be
considered a qualified investment; and
(4) property that is owned by a person other than the applicant
and that is pooled or proposed to be pooled with property owned
by the applicant may not be included in determining the amount of
the applicant's qualifying investment.
(d) To be eligible for a limitation on appraised value under
this subchapter, at least 80 percent of all the new jobs created
by the property owner must be qualifying jobs as defined by
Section 313.021(3).
(e) In this section:
(1) "Manufacturing" means an establishment primarily engaged in
activities described in sectors 31-33 of the 2007 North American
Industry Classification System.
(2) "Renewable energy electric generation" means an
establishment primarily engaged in activities described in
category 221119 of the 1997 North American Industry
Classification System.
(3) "Integrated gasification combined cycle technology" means
technology used to produce electricity in a combined combustion
turbine and steam turbine application using synthetic gas or
another product produced from the gasification of coal or another
carbon-based feedstock, including related activities such as
materials-handling and gasification of coal or another
carbon-based feedstock.
(4) "Nuclear electric power generation" means activities
described in category 221113 of the 2002 North American Industry
Classification System.
(5) "Research and development" means an establishment primarily
engaged in activities described in category 541710 of the 2002
North American Industry Classification System.
(6) "Computer center" means an establishment primarily engaged
in providing electronic data processing and information storage.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1,
2002.
Amended by:
Acts 2005, 79th Leg., Ch.
1097, Sec. 5, eff. June 18, 2005.
Acts 2006, 79th Leg., 3rd C.S., Ch.
1, Sec. 16(b), eff. January 1, 2008.
Acts 2006, 79th Leg., 3rd C.S., Ch.
1, Sec. 16(c), eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch.
1262, Sec. 3, eff. June 15, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1262, Sec. 4, eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch.
1262, Sec. 5, eff. June 15, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1277, Sec. 10, eff. January 1, 2008.
Acts 2009, 81st Leg., R.S., Ch.
1186, Sec. 3, eff. June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch.
1186, Sec. 4, eff. June 19, 2009.
Sec. 313.025. APPLICATION; ACTION ON APPLICATION. (a) The
owner or lessee of, or the holder of another possessory interest
in, any qualified property described by Section 313.021(2)(A),
(B), or (C) may apply to the governing body of the school
district in which the property is located for a limitation on the
appraised value for school district maintenance and operations ad
valorem tax purposes of the person's qualified property. An
application must be made on the form prescribed by the
comptroller and include the information required by the
comptroller, and it must be accompanied by:
(1) the application fee established by the governing body of the
school district;
(2) information sufficient to show that the real and personal
property identified in the application as qualified property
meets the applicable criteria established by Section 313.021(2);
and
(3) information relating to each applicable criterion listed in
Section 313.026.
(a-1) Within seven days of the receipt of each document, the
school district shall submit to the comptroller a copy of the
application and the agreement between the applicant and the
school district. If an economic analysis of the proposed project
is submitted to the school district, the district shall submit a
copy of the analysis to the comptroller. In addition, the school
district shall submit to the comptroller any subsequent revision
of or amendment to any of those documents within seven days of
its receipt. The comptroller shall publish each document
received from the school district under this subsection on the
comptroller's Internet website. 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. This subsection does not require the comptroller to
post information that is confidential under Section 313.028.
(b) The governing body of a school district is not required to
consider an application for a limitation on appraised value that
is filed with the governing body under Subsection (a). If the
governing body of the school district does elect to consider an
application, the governing body shall deliver three copies of the
application to the comptroller and request that the comptroller
provide an economic impact evaluation of the application to the
school district. Except as provided by Subsection (b-1), the
comptroller shall conduct or contract with a third person to
conduct the evaluation, which shall be completed and provided to
the governing body of the school district as soon as practicable.
The governing body shall provide to the comptroller or third
person any requested information. 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. The
governing body shall provide a copy of the evaluation to the
applicant on request. The comptroller may charge and collect a
fee sufficient to cover the costs of providing the economic
impact evaluation. The governing body of a school district shall
approve or disapprove an application before the 151st 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.
(b-1) The comptroller shall indicate on one copy of the
application the date the comptroller received the application and
deliver that copy to the Texas Education Agency. The Texas
Education Agency shall determine the effect that the applicant's
proposal will have on the number or size of the school district's
instructional facilities, as required to be included in the
economic impact evaluation by Section 313.026(a)(9), and submit a
written report containing the agency's determination to the
comptroller. The governing body of the school district shall
provide any requested information to the Texas Education Agency.
Not later than the 45th day after the date the application
indicates that the comptroller received the application, the
Texas Education Agency shall make the required determination and
submit the agency's written report to the comptroller. A third
person contracted by the comptroller to conduct an economic
impact evaluation of an application is not required to make a
determination that the Texas Education Agency is required to make
and report to the comptroller under this subsection.
(c) In determining whether to grant an application, the
governing body of the school district is entitled to request and
receive assistance from:
(1) the comptroller;
(2) the Texas Department of Economic Development;
(3) the Texas Workforce Investment Council; and
(4) the Texas Workforce Commission.
(d) Before the 91st day after the date the comptroller receives
the copy of the application, the comptroller shall submit a
recommendation to the governing body of the school district as to
whether the application should be approved or disapproved.
(d-1) The governing body of a school district may approve an
application that the comptroller has recommended should be
disapproved only if:
(1) the governing body holds a public hearing the sole purpose
of which is to consider the application and the comptroller's
recommendation; and
(2) at a subsequent meeting of the governing body held after the
date of the public hearing, at least two-thirds of the members of
the governing body vote to approve the application.
(e) Before approving or disapproving an application under this
subchapter that the governing body elects to consider, the
governing body of the school district must make a written finding
as to each criterion listed in Section 313.026. The governing
body shall deliver a copy of those findings to the applicant.
(f) The governing body may approve an application only if the
governing body finds that the information in the application is
true and correct, finds that the applicant is eligible for the
limitation on the appraised value of the person's qualified
property, and determines that granting the application is in the
best interest of the school district and this state.
(f-1) Notwithstanding any other provision of this chapter to the
contrary, including Section 313.003(2) or 313.004(3)(A) or
(B)(iii), the governing body of a school district may waive the
new jobs creation requirement in Section 313.021(2)(A)(iv)(b) or
313.051(b) and approve an application if the governing body makes
a finding that the jobs creation requirement exceeds the industry
standard for the number of employees reasonably necessary for the
operation of the facility of the property owner that is described
in the application.
(g) The Texas Department of Economic Development or its
successor may recommend that a school district grant a person a
limitation on appraised value under this chapter. In determining
whether to grant an application, the governing body of the school
district shall consider any recommendation made by the Texas
Department of Economic Development or its successor.
(h) After receiving a copy of the application, the comptroller
shall determine whether the property meets the requirements of
Section 313.024 for eligibility for a limitation on appraised
value under this subchapter. 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. A hearing under
this subsection is a contested case hearing and shall be
conducted by the State Office of Administrative Hearings in the
manner provided by Section 2003.101, Government Code. The
applicant has the burden of proof on each issue in the hearing.
The applicant may seek judicial review of the comptroller's
determination in a Travis County district court under the
substantial evidence rule as provided by Subchapter G, Chapter
2001, Government Code.
(i) If the comptroller's determination under Subsection (h) that
the property does not meet the requirements of Section 313.024
for eligibility for a limitation on appraised value under this
subchapter becomes final, the comptroller is not required to
provide an economic impact evaluation of the application or to
submit a recommendation to the school district as to whether the
application should be approved or disapproved, and the governing
body of the school district may not grant the application.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1,
2002. Amended by Acts 2003, 78th Leg., ch. 818, Sec. 6.11, eff.
TAX CODETITLE 3. LOCAL TAXATIONSUBTITLE B. SPECIAL PROPERTY TAX PROVISIONSCHAPTER 313. TEXAS ECONOMIC DEVELOPMENT ACTSUBCHAPTER A. GENERAL PROVISIONSSec. 313.001. SHORT TITLE. This chapter may be cited as the Texas Economic Development Act.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.002. FINDINGS. The legislature finds that:(1) many states have enacted aggressive economic development laws designed to attract large employers, create jobs, and strengthen their economies;(2) the State of Texas has slipped in its national ranking each year between 1993 and 2000 in terms of attracting major new manufacturing facilities to this state;(3) a significant portion of the Texas economy continues to be based in the manufacturing industry, and the continued growth and overall health of the manufacturing sector serves the Texas economy well;(4) without a vibrant, strong manufacturing sector, other sectors of the economy, especially the state's service sector, will also suffer adverse consequences; and(5) the current property tax system of this state does not favor capital-intensive businesses such as manufacturers.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.003. PURPOSES. The purposes of this chapter are to:(1) encourage large-scale capital investments in this state, especially in school districts that have an ad valorem tax base that is less than the statewide average ad valorem tax base of school districts in this state;(2) create new, high-paying jobs in this state;(3) attract to this state new, large-scale businesses that are exploring opportunities to locate in other states or other countries;(4) enable local government officials and economic development professionals to compete with other states by authorizing economic development incentives that meet or exceed incentives being offered to prospective employers by other states and to provide 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 property tax base of this state; and(7) enhance this state's economic development efforts by providing school districts with an effective local economic development option.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.004. LEGISLATIVE INTENT. It is the intent of the legislature in enacting this chapter that:(1) economic development decisions should occur at the local level and be consistent with identifiable statewide economic development goals;(2) this chapter should not be construed or interpreted to allow:(A) property owners to pool investments to create sufficiently large investments to qualify for an ad valorem tax benefit or financial benefit provided by this chapter;(B) an applicant for an ad valorem tax benefit or financial benefit provided by this chapter to assert that jobs will be eliminated if certain investments are not made if the assertion is not true; or(C) a sole proprietorship, partnership, or limited liability partnership to receive an ad valorem tax benefit or financial benefit provided by this chapter; and(3) in implementing this chapter, school districts should:(A) strictly interpret the criteria and selection guidelines provided by this chapter; and(B) approve only those applications for an ad valorem tax benefit or financial benefit provided by this chapter that:(i) enhance the local community;(ii) improve the local public education system;(iii) create high-paying jobs; and(iv) advance the economic development goals of this state as identified by the Texas Strategic Economic Development Planning Commission.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.005. DEFINITIONS. Unless this chapter defines a word or phrase used in this chapter, Section 1.04 or any other section of Title 1 or this title that defines the word or phrase or ascribes a meaning to the word or phrase applies to the word or phrase used in this chapter.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.006. IMPOSITION OF IMPACT FEE. (a) In this section, "impact fee" means a charge or assessment imposed against a qualified property, as defined by Section 313.021, in order to generate revenue for funding or recouping the costs of capital improvements or facility expansions for water, wastewater, or storm water services or for roads necessitated by or attributable to property that receives a limitation on appraised value under this chapter.(b) Notwithstanding any other law, including Chapter 395, Local Government Code, a municipality or county may impose and collect from the owner of a qualified property a reasonable impact fee under this section to pay for the cost of providing improvements associated with or attributable to property that receives a limitation on appraised value under this chapter.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.
Sec. 313.007. EXPIRATION. Subchapters B, C, and D expire December 31, 2014.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002.Amended by: Acts 2007, 80th Leg., R.S., Ch. 864, Sec. 1, eff. June 15, 2007.Acts 2009, 81st Leg., R.S., Ch. 1186, Sec. 1, eff. June 19, 2009.
Sec. 313.008. REPORT ON COMPLIANCE WITH ENERGY-RELATED AGREEMENTS. (a) Before the beginning of each regular session of the legislature, the comptroller shall submit to the lieutenant governor, the speaker of the house of representatives, and each member of the legislature a report assessing the progress of each agreement entered into under this chapter utilizing data certified by agreement recipients, on each agreement entered into under this chapter involving energy-related projects, including wind generation, ethanol production, liquefied natural gas terminals, low sulfur diesel production, refinery cogeneration, and nuclear energy production. The report must state for each agreement:(1) the number of qualifying jobs each recipient of a limitation on appraised value committed to create;(2) the number of qualifying jobs each recipient created;(3) the median wage of the new jobs each recipient created;(4) the amount of the qualified investment each recipient committed to expend or allocate per project;(5) the amount of the qualified investment each recipient expended or allocated per project;(6) the market value of the qualified property of each recipient as established by the local appraiser;(7) the limitation on appraised value for the qualified property of each recipient;(8) the dollar amount of the ad valorem taxes that would have been imposed on the market value of the qualified property;(9) the dollar amount of the ad valorem taxes imposed on the qualified property;(10) the number of new jobs created by each recipient in each sector of the North American Industry Classification System (NAICS); and(11) of the number of new jobs each recipient created, the number of positions created that provide health benefits for employees.(b) The report may not include information that is made confidential by law.(c) The comptroller may require a recipient to submit, on a form provided by the comptroller, information required to complete the report.
Added by Acts 2007, 80th Leg., R.S., Ch. 939, Sec. 17, eff. September 1, 2007.
Sec. 313.009. REPORT ON COMPLIANCE WITH AGREEMENTS. (a) Before the beginning of each regular session of the legislature, the comptroller shall submit to the lieutenant governor, the speaker of the house of representatives, and each member of the legislature a report assessing the progress of each agreement entered into under this chapter. The report must be based on data certified to the comptroller by each recipient of a limitation on appraised value under this chapter and state for each agreement:(1) the number of qualifying jobs each recipient of a limitation on appraised value committed to create;(2) the number of qualifying jobs each recipient created;(3) the median wage of the new jobs each recipient created;(4) the amount of the qualified investment each recipient committed to expend or allocate per project;(5) the amount of the qualified investment each recipient expended or allocated per project;(6) the market value of the qualified property of each recipient as determined by the applicable chief appraiser;(7) the limitation on appraised value for the qualified property of each recipient;(8) the dollar amount of the taxes that would have been imposed on the market value of the qualified property if the property had not received a limitation on appraised value;(9) the dollar amount of the taxes imposed on the qualified property;(10) the number of new jobs created by each recipient in each sector of the North American Industry Classification System; and(11) of the number of new jobs each recipient created, the number of jobs created that provide health benefits for employees.(b) The report may not include information that is made confidential by law.(c) The comptroller may require a recipient to submit, on a form the comptroller provides, information required to complete the report.
Added by Acts 2007, 80th Leg., R.S., Ch. 1270, Sec. 6, eff. October 1, 2007.Renumbered from Tax Code, Section 313.008 by Acts 2009, 81st Leg., R.S., Ch. 87, Sec. 27.001(88), eff. September 1, 2009.
SUBCHAPTER B. LIMITATION ON APPRAISED VALUE OF CERTAIN PROPERTY USED TO CREATE JOBSFor expiration of this subchapter, see Sec. 313.007Sec. 313.021. DEFINITIONS. In this subchapter:(1) "Qualified investment" means:(A) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2002, without regard to whether the property is affixed to or incorporated into real property, and that is described as Section 1245 property by Section 1245(a), Internal Revenue Code of 1986;(B) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2002, without regard to whether the property is affixed to or incorporated into real property, and that is used in connection with the manufacturing, processing, or fabrication in a cleanroom environment of a semiconductor product, without regard to whether the property is actually located in the cleanroom environment, including:(i) integrated systems, fixtures, and piping;(ii) all property necessary or adapted to reduce contamination or to control airflow, temperature, humidity, chemical purity, or other environmental conditions or manufacturing tolerances; and(iii) production equipment and machinery, moveable cleanroom partitions, and cleanroom lighting;(C) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2002, without regard to whether the property is affixed to or incorporated into real property, and that is used in connection with the operation of a nuclear electric power generation facility, including:(i) property, including pressure vessels, pumps, turbines, generators, and condensers, used to produce nuclear electric power; and(ii) property and systems necessary to control radioactive contamination;(D) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2002, without regard to whether the property is affixed to or incorporated into real property, and that is used in connection with operating an integrated gasification combined cycle electric generation facility, including:(i) property used to produce electric power by means of a combined combustion turbine and steam turbine application using synthetic gas or another product produced by the gasification of coal or another carbon-based feedstock; or(ii) property used in handling materials to be used as feedstock for gasification or used in the gasification process to produce synthetic gas or another carbon-based feedstock for use in the production of electric power in the manner described by Subparagraph (i);(E) tangible personal property that is first placed in service in this state during the applicable qualifying time period that begins on or after January 1, 2010, without regard to whether the property is affixed to or incorporated into real property, and that is used in connection with operating an advanced clean energy project, as defined by Section 382.003, Health and Safety Code; or(F) a building or a permanent, nonremovable component of a building that is built or constructed during the applicable qualifying time period that begins on or after January 1, 2002, and that houses tangible personal property described by Paragraph (A), (B), (C), (D), or (E).(2) "Qualified property" means:(A) land:(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 applies 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(iv) on which, in connection with the new building or new improvement described by Subparagraph (ii), the owner or lessee of, or the holder of another possessory interest in, the land proposes to:(a) make a qualified investment in an amount equal to at least the minimum amount required by Section 313.023; and(b) create at least 25 new jobs;(B) the new building or other new improvement described by Paragraph (A)(ii); and(C) tangible personal property that:(i) is not subject to a tax abatement agreement entered into by a school district under Chapter 312; and(ii) except for new equipment described in Section 151.318(q) or (q-1), is first placed in service in the new building or in or on the new improvement described by Paragraph (A)(ii), or on the land on which that new building or new improvement is located, if the personal property is ancillary and necessary to the business conducted in that new building or in or on that new improvement.(3) "Qualifying job" means a permanent full-time job that:(A) requires at least 1,600 hours of work a year;(B) is not transferred from one area in this state to another area in this state;(C) is not created to replace a previous employee;(D) is covered by a group health benefit plan for which the business offers to pay at least 80 percent of the premiums or other charges assessed for employee-only coverage under the plan, regardless of whether an employee may voluntarily waive the coverage; and(E) pays at least 110 percent of:(i) the county average weekly wage for manufacturing jobs in the county where the job is located; or(ii) the county average weekly wage for all jobs in the county where the job is located, if the property owner creates more than 1,000 jobs in that county.(4) "Qualifying time period" means:(A) the period that begins on the date that a person's application for a limitation on appraised value under this subchapter is approved by the governing body of the school district and ends on December 31 of the second tax year that begins after that date, except as provided by Paragraph (B) or (C) of this subdivision or Section 313.027(h);(B) in connection with a nuclear electric power generation facility, the first seven 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; or(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.(5) "County average weekly wage for manufacturing jobs" means:(A) the average weekly wage in a county for manufacturing jobs during the most recent four quarterly periods for which data is available at the time a person submits an application for a limitation on appraised value under this subchapter, as computed by the Texas Workforce Commission; or(B) the average weekly wage for manufacturing jobs in the region designated for the regional planning commission, council of governments, or similar regional planning agency created under Chapter 391, Local Government Code, in which the county is located during the most recent four quarterly periods for which data is available at the time a person submits an application for a limitation on appraised value under this subchapter, as computed by the Texas Workforce Commission.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1, 2002. Amended by Acts 2003, 78th Leg., ch. 1310, Sec. 113, eff. June 20, 2003.Amended by: Acts 2007, 80th Leg., R.S., Ch. 1262, Sec. 2, eff. June 15, 2007.Acts 2009, 81st Leg., R.S., Ch. 1109, Sec. 6, eff. September 1, 2009.Acts 2009, 81st Leg., R.S., Ch. 1186, Sec. 2, eff. June 19, 2009.
Sec. 313.022. APPLICABILITY; CATEGORIZATION OF SCHOOL DISTRICTS. (a) This subchapter applies to each school district in this state other than a school district to which Subchapter C applies.(b) For purposes of determining the required minimum amount of a qualified investment under Section 313.021(2)(A)(iv)(a), and the minimum amount of a limitation on appraised value under Section 313.027(b), school districts to which this subchapter applies are categorized according to the taxable value of property in the district for the preceding tax year determined under Subchapter M, Chapter 403, Government Code, as follows:
CATEGORY
TAXABLE VALUE OF PROPERTY
I
$10 billion or more
II
$1 billion or more but less than $10 billion
III
$500 million or more but less than $1 billion
IV
$100 million or more but less than $500 million
V
less than $100 million
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1,
2002.
Sec. 313.023. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. For each
category of school district established by Section 313.022, the
minimum amount of a qualified investment under Section
313.021(2)(A)(iv)(a) is as follows:
CATEGORY
MINIMUM QUALIFIED INVESTMENT
I
$100 million
II
$80 million
III
$60 million
IV
$40 million
V
$20 million
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1,
2002.
Sec. 313.024. ELIGIBLE PROPERTY. (a) This subchapter and
Subchapters C and D apply only to property owned by an entity to
which Chapter 171 applies.
(b) To be eligible for a limitation on appraised value under
this subchapter, the entity must use the property in connection
with:
(1) manufacturing;
(2) research and development;
(3) a clean coal project, as defined by Section 5.001, Water
Code;
(4) an advanced clean energy project, as defined by Section
382.003, Health and Safety Code;
(5) renewable energy electric generation;
(6) electric power generation using integrated gasification
combined cycle technology;
(7) nuclear electric power generation; or
(8) a computer center primarily used in connection with one or
more activities described by Subdivisions (1) through (7)
conducted by the entity.
(c) For purposes of determining an applicant's eligibility for a
limitation under this subchapter:
(1) the land on which a building or component of a building
described by Section 313.021(1)(E) is located is not considered a
qualified investment;
(2) property that is leased under a capitalized lease may be
considered a qualified investment;
(3) property that is leased under an operating lease may not be
considered a qualified investment; and
(4) property that is owned by a person other than the applicant
and that is pooled or proposed to be pooled with property owned
by the applicant may not be included in determining the amount of
the applicant's qualifying investment.
(d) To be eligible for a limitation on appraised value under
this subchapter, at least 80 percent of all the new jobs created
by the property owner must be qualifying jobs as defined by
Section 313.021(3).
(e) In this section:
(1) "Manufacturing" means an establishment primarily engaged in
activities described in sectors 31-33 of the 2007 North American
Industry Classification System.
(2) "Renewable energy electric generation" means an
establishment primarily engaged in activities described in
category 221119 of the 1997 North American Industry
Classification System.
(3) "Integrated gasification combined cycle technology" means
technology used to produce electricity in a combined combustion
turbine and steam turbine application using synthetic gas or
another product produced from the gasification of coal or another
carbon-based feedstock, including related activities such as
materials-handling and gasification of coal or another
carbon-based feedstock.
(4) "Nuclear electric power generation" means activities
described in category 221113 of the 2002 North American Industry
Classification System.
(5) "Research and development" means an establishment primarily
engaged in activities described in category 541710 of the 2002
North American Industry Classification System.
(6) "Computer center" means an establishment primarily engaged
in providing electronic data processing and information storage.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1,
2002.
Amended by:
Acts 2005, 79th Leg., Ch.
1097, Sec. 5, eff. June 18, 2005.
Acts 2006, 79th Leg., 3rd C.S., Ch.
1, Sec. 16(b), eff. January 1, 2008.
Acts 2006, 79th Leg., 3rd C.S., Ch.
1, Sec. 16(c), eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch.
1262, Sec. 3, eff. June 15, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1262, Sec. 4, eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch.
1262, Sec. 5, eff. June 15, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1277, Sec. 10, eff. January 1, 2008.
Acts 2009, 81st Leg., R.S., Ch.
1186, Sec. 3, eff. June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch.
1186, Sec. 4, eff. June 19, 2009.
Sec. 313.025. APPLICATION; ACTION ON APPLICATION. (a) The
owner or lessee of, or the holder of another possessory interest
in, any qualified property described by Section 313.021(2)(A),
(B), or (C) may apply to the governing body of the school
district in which the property is located for a limitation on the
appraised value for school district maintenance and operations ad
valorem tax purposes of the person's qualified property. An
application must be made on the form prescribed by the
comptroller and include the information required by the
comptroller, and it must be accompanied by:
(1) the application fee established by the governing body of the
school district;
(2) information sufficient to show that the real and personal
property identified in the application as qualified property
meets the applicable criteria established by Section 313.021(2);
and
(3) information relating to each applicable criterion listed in
Section 313.026.
(a-1) Within seven days of the receipt of each document, the
school district shall submit to the comptroller a copy of the
application and the agreement between the applicant and the
school district. If an economic analysis of the proposed project
is submitted to the school district, the district shall submit a
copy of the analysis to the comptroller. In addition, the school
district shall submit to the comptroller any subsequent revision
of or amendment to any of those documents within seven days of
its receipt. The comptroller shall publish each document
received from the school district under this subsection on the
comptroller's Internet website. 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. This subsection does not require the comptroller to
post information that is confidential under Section 313.028.
(b) The governing body of a school district is not required to
consider an application for a limitation on appraised value that
is filed with the governing body under Subsection (a). If the
governing body of the school district does elect to consider an
application, the governing body shall deliver three copies of the
application to the comptroller and request that the comptroller
provide an economic impact evaluation of the application to the
school district. Except as provided by Subsection (b-1), the
comptroller shall conduct or contract with a third person to
conduct the evaluation, which shall be completed and provided to
the governing body of the school district as soon as practicable.
The governing body shall provide to the comptroller or third
person any requested information. 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. The
governing body shall provide a copy of the evaluation to the
applicant on request. The comptroller may charge and collect a
fee sufficient to cover the costs of providing the economic
impact evaluation. The governing body of a school district shall
approve or disapprove an application before the 151st 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.
(b-1) The comptroller shall indicate on one copy of the
application the date the comptroller received the application and
deliver that copy to the Texas Education Agency. The Texas
Education Agency shall determine the effect that the applicant's
proposal will have on the number or size of the school district's
instructional facilities, as required to be included in the
economic impact evaluation by Section 313.026(a)(9), and submit a
written report containing the agency's determination to the
comptroller. The governing body of the school district shall
provide any requested information to the Texas Education Agency.
Not later than the 45th day after the date the application
indicates that the comptroller received the application, the
Texas Education Agency shall make the required determination and
submit the agency's written report to the comptroller. A third
person contracted by the comptroller to conduct an economic
impact evaluation of an application is not required to make a
determination that the Texas Education Agency is required to make
and report to the comptroller under this subsection.
(c) In determining whether to grant an application, the
governing body of the school district is entitled to request and
receive assistance from:
(1) the comptroller;
(2) the Texas Department of Economic Development;
(3) the Texas Workforce Investment Council; and
(4) the Texas Workforce Commission.
(d) Before the 91st day after the date the comptroller receives
the copy of the application, the comptroller shall submit a
recommendation to the governing body of the school district as to
whether the application should be approved or disapproved.
(d-1) The governing body of a school district may approve an
application that the comptroller has recommended should be
disapproved only if:
(1) the governing body holds a public hearing the sole purpose
of which is to consider the application and the comptroller's
recommendation; and
(2) at a subsequent meeting of the governing body held after the
date of the public hearing, at least two-thirds of the members of
the governing body vote to approve the application.
(e) Before approving or disapproving an application under this
subchapter that the governing body elects to consider, the
governing body of the school district must make a written finding
as to each criterion listed in Section 313.026. The governing
body shall deliver a copy of those findings to the applicant.
(f) The governing body may approve an application only if the
governing body finds that the information in the application is
true and correct, finds that the applicant is eligible for the
limitation on the appraised value of the person's qualified
property, and determines that granting the application is in the
best interest of the school district and this state.
(f-1) Notwithstanding any other provision of this chapter to the
contrary, including Section 313.003(2) or 313.004(3)(A) or
(B)(iii), the governing body of a school district may waive the
new jobs creation requirement in Section 313.021(2)(A)(iv)(b) or
313.051(b) and approve an application if the governing body makes
a finding that the jobs creation requirement exceeds the industry
standard for the number of employees reasonably necessary for the
operation of the facility of the property owner that is described
in the application.
(g) The Texas Department of Economic Development or its
successor may recommend that a school district grant a person a
limitation on appraised value under this chapter. In determining
whether to grant an application, the governing body of the school
district shall consider any recommendation made by the Texas
Department of Economic Development or its successor.
(h) After receiving a copy of the application, the comptroller
shall determine whether the property meets the requirements of
Section 313.024 for eligibility for a limitation on appraised
value under this subchapter. 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. A hearing under
this subsection is a contested case hearing and shall be
conducted by the State Office of Administrative Hearings in the
manner provided by Section 2003.101, Government Code. The
applicant has the burden of proof on each issue in the hearing.
The applicant may seek judicial review of the comptroller's
determination in a Travis County district court under the
substantial evidence rule as provided by Subchapter G, Chapter
2001, Government Code.
(i) If the comptroller's determination under Subsection (h) that
the property does not meet the requirements of Section 313.024
for eligibility for a limitation on appraised value under this
subchapter becomes final, the comptroller is not required to
provide an economic impact evaluation of the application or to
submit a recommendation to the school district as to whether the
application should be approved or disapproved, and the governing
body of the school district may not grant the application.
Added by Acts 2001, 77th Leg., ch. 1505, Sec. 1, eff. Jan. 1,
2002. Amended by Acts 2003, 78th Leg., ch. 818, Sec. 6.11, eff.
