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Rule 9.1055, Comptroller Application Review and Agreement to Limit Appraised Value
| TITLE 34 | PUBLIC FINANCE |
|---|---|
| PART 1 | COMPTROLLER OF PUBLIC ACCOUNTS |
| CHAPTER 9 | PROPERTY TAX ADMINISTRATION |
| SUBCHAPTER F | LIMITATION ON APPRAISED VALUE AND TAX CREDITS ON CERTAIN QUALIFIED PROPERTY |
| RULE §9.1055 | Comptroller Application Review and Agreement to Limit Appraised Value |
(a) Documents submitted to comptroller. Within 15 days of receiving or creating a substantive document, the comptroller shall post such document on the comptroller's Internet website, provided however, the comptroller shall not post any documents determined to be confidential in accordance with Tax Code, §313.028 and this section.
(1) The comptroller shall deem information as confidential only if the document:
(A) at the time that it is received by the comptroller, the party requesting confidentiality:
(i) has segregated the information for which confidentiality is being requested from the other information submitted to the comptroller and clearly and conspicuously labeled it confidential information;
(ii) provides a written list specifically identifying each document, portion of document, or entry in the form prescribed by the comptroller that applicant contends is confidential; and
(iii) provides in writing specific reasons, including any relevant legal authority, stating why the material is believed to be confidential; and
(B) the comptroller determines that the information for which confidentiality is sought describes:
(i) specific processes or business activities to be conducted by the applicant; or
(ii) specific tangible personal property to be located on real property covered by the application.
(2) Substantive documents deemed confidential will not be posted on the internet and will otherwise be withheld from public release unless and until the governing body of the school district acts on the application or the comptroller is directed to release the documents by a ruling from the Attorney General.
(3) All applications and parts of applications which are not segregated and marked as confidential as required under this section shall be considered substantive documents and shall be posted on the internet.
(4) When the governing body of the school district agrees to consider the application, information in the custody of a school district or the comptroller in connection with the application, including information related to the economic impact of a project or the essential elements of eligibility pursuant to Tax Code, Chapter 313, such as the nature and amount of the projected investment, employment, wages, and benefits, shall not be considered confidential business information.
(b) Application review. Upon receiving an application and accompanying documentation, the comptroller shall review the application to determine if it is complete.
(1) If the comptroller determines that the application was not submitted in compliance with or does not have documents or information required pursuant to §9.1053(a) and if applicable (b), of this title (relating to Entity Requesting Agreement to Limit Appraised Value), or does not provide all necessary information the comptroller determines is necessary to make the determinations required by Tax Code, §313.026, and subsection (d) of this section, the comptroller shall provide written notice to the school district, with a copy to applicant, identifying the information that is required or necessary to complete the application.
(A) Supplemental application information, amended application information, and additional information requested by the comptroller shall be promptly forwarded to the comptroller within 20 days of the date of the request.
(B) On request of the school district or applicant, the comptroller may extend the deadline for providing additional information for a period of not more than 10 working days.
(C) Additional information concerning investment, property value, property description, employment, and the qualifying time period that is not provided to the comptroller in a timely manner may or may not be used by the comptroller in making the determinations required by Tax Code, §313.026 or this section.
(2) Until the comptroller receives such information as is required and necessary to be submitted by applicant, the comptroller may discontinue further action on the application. The comptroller shall discontinue consideration of an application that remains incomplete for more than 180 days after the date the comptroller first received the application plus the number of days of any extension, notice of which has been provided to the comptroller pursuant to §9.1054(d) of this title (relating to School District Application Review and Agreement to Limit Appraised Value).
(3) When the comptroller determines that the documentation submitted in support of an application meets the requirements for an application pursuant to §9.1053(a) and if applicable (b), of this title, and the comptroller has received from the school district a request to provide an economic impact evaluation and all necessary documents for an appropriate evaluation of the requested appraised value limitation from the applicant and the school district, the comptroller shall provide:
(A) written notice to the school district and applicant that applicant has submitted a completed application; and
(B) a copy of the completed application to the Texas Education Agency.
(c) Action on completed application. After issuing a notice of a completed application, and after receipt of the information from the school district required by §9.1054(c)(2) of this title, the comptroller shall determine whether the property meets the requirements of Tax Code, §313.024 for eligibility for a limitation on appraised value pursuant to the provisions of Tax Code, Chapter 313, Subchapter B or C, whichever is applicable.
(1) If the comptroller determines that the property is not eligible for a limitation on appraised value, the comptroller shall:
(A) notify the governing body of the school district and applicant of the comptroller's determination by certified mail return receipt requested; and
(B) discontinue consideration of the application.
(2) If an applicant disagrees with a denial of eligibility for limitation of appraised value under Tax Code, §313.024, applicant may appeal the eligibility determination pursuant to the procedures set forth in Tax Code, Chapter 313 and in §9.1056 of this title (relating to Eligibility Determination Appeal). If an appeal under §9.1056 of this title, results in a determination that the project is eligible, the comptroller shall re-commence review of the application.
(d) Action on an eligible completed application. After determining that property identified in an application is eligible for limitation for appraised value and upon receiving a request from the school district to prepare an economic impact analysis, the comptroller shall:
(1) review any information available to the comptroller including:
(A) the application;
(B) public documents or statements by the applicant concerning business operations or site location issues or in which the applicant is a subject;
(C) statements by officials of the applicant, public documents or statements by governmental or industry officials concerning business operations or site location issues;
(D) existing investment and operations at or near the site or in the state that may impact the proposed project;
(E) announced real estate transactions, utility records, permit requests, industry publications or other sources that may provide information helpful in making the determination; and
(F) market information, raw materials or other production inputs, availability, existing facility locations, committed incentives, infrastructure issues, utility issues, location of buyers, nature of market, supply chains, other known sites under consideration, or any other information;
(2) prepare an economic impact analysis on the investment proposed by the application as required by Tax Code, §313.025 which may include:
(A) estimates of the maintenance and operations taxes for the 25 year period after the beginning of the limitation period;
(B) estimated tax revenue to the state generated by expenditures by the project, including wages, construction and operational expenditures, or other expenditures; and
(C) tax impacts, positive or negative, to the state based on indirect effects of the project, as estimated by the agency and using publicly available economic modeling systems;
(3) make the following determinations whether:
(A) it is reasonable to conclude from all the information available that the application is true and correct;
(B) the applicant is eligible for the limitation on the appraised value of the applicant's qualified property;
(C) the project proposed by the applicant is reasonably likely to generate tax revenue in an amount sufficient to offset the school district maintenance and operations ad valorem tax revenue lost as a result of the agreement before the 25th anniversary of the beginning of the limitation period; and
(D) the limitation on appraised value is a determining factor in the applicant's decision to invest capital and construct the project in this state;
(4) not later than 90 days after written notice that the school district and the comptroller have determined that applicant has submitted a completed application that is eligible for a limitation of appraised value under Tax Code, §313.025(b), provide to the school district:
(A) an economic impact evaluation as required pursuant to Tax Code, §313.025(b);
(B) the comptroller's conclusion for each made pursuant to paragraph (3) of this subsection; and
(C) one of the three following:
(i) a comptroller certificate for a limitation;
(ii) a comptroller certificate for a limitation, subject to:
(I) conditions identified in the comptroller certificate for a limitation being completed prior to execution of the agreement; or
(II) the agreement including additional provisions as identified in the comptroller certificate for a limitation; or
(iii) a written explanation of the comptroller's decision not to issue a certificate.
(e) Action after agreement review. No later than 10 business days after receiving an agreement for limitation on appraised value acceptable to an applicant, the comptroller:
(1) shall review the agreement for:
(A) compliance with Tax Code, Chapter 313, and this subchapter; and
(B) consistency with the application submitted to the comptroller and as amended or supplemented;
(2) if the comptroller determines that the agreement as submitted by the applicant does not comply with Tax Code, Chapter 313 or this subchapter or that the agreement contains provisions that are not consistent with or represents information significantly different from that presented in the application as submitted to the comptroller, may amend or withdraw the comptroller certificate for a limitation; and
(3) provide written notification to the school district of the actions taken under this subsection.
(f) Application changes after the notice of completed application. If the comptroller receives an amended application or a supplemental application by an applicant after the comptroller has prepared or sent written notice that applicant has submitted a completed application, the comptroller shall:
(1) reject the amended application, supplemental application, or application, in whole or in part, and discontinue consideration of any submission by applicant;
(2) with the written concurrence of the school district, consider the completed application, as amended or supplemented, before the 91st day from application review start date; or
(3) review the documents submitted by applicant and complete the requirements according to subsection (d) of this section.
(g) Applications and agreements for deferred qualifying time period. When an eligible completed application for an agreement for limitation on appraised value requests to begin the qualifying time period after the date that the application is approved, the comptroller:
(1) to the extent possible, shall prepare the economic impact analysis for an estimated impact of the qualified investment during the proposed qualifying time period;
(2) if an appraised value limitation agreement which defers the time at which the qualifying time period starts for more than one year is executed, may request at any time prior to the commencement of the qualifying time period additional information to revise the economic impact analysis for the qualified investment; and
(3) based on the revised economic impact analysis, may revise the comptroller certificate for a limitation that was previously submitted, or determine to not issue such a certificate; and
(4) if a revised comptroller certificate for a limitation is prepared, or a determination is made not to issue such a certificate, shall provide the revised comptroller certificate for a limitation, or a written explanation of the decision not to issue such certificate, and revised economic impact analysis to the school district and approved applicant.
Source Note: The provisions of this §9.1055 adopted to be effective June 22, 2010, 35 TexReg 5367; amended to be effective June 2, 2014, 39 TexReg 4259