Chapter 313 Tax Limitation Application and Agreement Process
Chapter 313 and the Comptroller’s administrative rules govern the review and approval process for the applicant’s application. The process typically requires about 5-6 months. A general overview of the process is discussed below:
An applicant seeking a tax value limitation makes an initial application to a school district using the form provided by the Texas Comptroller. The application includes the fee to the school district which covers the cost of the school district’s financial consultants and legal fees.
Upon the district’s Board of Trustees accepting the application, the application is submitted to the Texas Comptroller for initial review. Once the Comptroller determines that all necessary information is included in the application, the Comptroller issues a completeness letter, which begins the Comptroller’s 90 day review period and the district’s 150 day statutory approval period. The Comptroller’s review period cannot be extended, but the district may grant extensions of its approval period and typically does.
Assuming the application meets the statutory requirements and required standards of review, the Comptroller issues a certification that includes an economic impact report.
Once the Comptroller issues the certification, the applicant and the school district negotiate a written limitation agreement based upon the template provided by the Comptroller.
Once the limitation agreement is agreeable to the parties, the agreement is submitted to the Comptroller and the Comptroller has 20 days to review and request changes. Once approved, the Comptroller issues a letter of approval.
Following certification and approval, the district schedules a meeting where the agreement and findings of fact are presented to the Board of Trustees. Assuming approval, the agreement is executed at the conclusion of the meeting. The Board of Trustees may only approve an application if it finds that (a) the information in the application is true and correct; (b) the applicant is eligible for the limitation; and (c) the granting the application is in the best interest of the school district and the State.
Following approval and execution of an agreement, both the applicant and the district have continue reporting obligations.
Please contact us with any Chapter 313 inquiries or questions.