Governor Perry Signs Temple Reinvestment Zone Bill
Austin — Senator Troy Fraser (R-Horseshoe Bay) and Representative Ralph Sheffield (R-Temple) are pleased to announce that Governor Rick Perry signed legislation into law to allow Temple area school districts to continue to participate in the Temple Tax Increment Financing Reinvestment Zone without being financially penalized.
"This legislation was an important measure to allow the City of Temple to continue to fund the infrastructure necessary to bring business to our city," Sheffield stated. "Quality roads allows people to get where they need to be more quickly and has a great effect on the success of businesses in our area."
The affected Temple tax increment financing reinvestment zone is authorized for a 40-year term and is set to expire in 2022 and may be extended for another 40 years by city ordinance. Under current law, a participating school district does not lose state funds for the reduced property values of the district for the initial term.
House Bill 3465 would allow a local school district to continue to participate in Temple's tax reinvestment zone if it is extended without losing state aid due to the higher property tax values.
"This bill will allow the City of Temple to continue to experience great economic growth," said Fraser. "This reinvestment zone is an important economic development tool to get business to expand or relocate to Temple."
Temple Mayor Bill Jones III said, "The action taken to pass HB 3465 will assure that Temple will remain a community that will continue to create jobs for its citizens for decades to come."
Tax increment financing is a tool that allows a local government to finance needed structural improvements and enhanced infrastructure within a defined zone. The cost of the improvements made in the zone are repaid by future property tax revenues levied by a participating government. The local government is allowed to dedicate some or all of the tax revenue that is collected due to increase in property values within the zone.
HB 3465 will take effect on September 1, 2011.