Free Application for Appraised Value Limitation on Qualified Property (Chapter 313, Subchapter B or C, Property Tax Code) - Texas

50-296 (Rev. 09-08/5)

APPLICATION FOR APPRAISED VALUE LIMITATION ON QUALIFIED PROPERTY (Tax Code, Chapter 313, Subchapter B or C)
Date application filed with district (To be filled in by school district) School district name

Address

Phone (area code and number)

This form applies to property that meets the requirements of Tax Code Chapter 313. This completed application must be filed with the school district. If the governing body decides to consider this application, the school district must immediately forward three copies of the application to the Comptroller of Public Accounts and request that the Comptroller provide an economic impact evaluation of the application to the school district. The governing body may, at its discretion, allow the applicant to supplement or amend the application after the filing date, subject to the restrictions in Texas Administrative Code Rule 9.1054, to provide information required by the application form that was unavailable prior to the filing date. The school district must forward the supplemental or amended information to the comptroller and the appraisal district. The school board shall approve or disapprove this application before the 121st day from the application filing date, unless an extension is granted. Step 1: Applicant name and address Only entities to which Tax Code Chapter 171 applies are eligible for appraised value limitations on qualified property.
Applicant name:

Mailing address:

Texas Taxpayer I.D. Number of entity subject to Tax Code, Chapter 171 (11 digits): Name of person preparing this application:

City, State:

ZIP code + 4:

Title:

Phone (area code and number):

Step 2: Describe the property.

(A) Attach the following items to this application: 1. A specific description of all property for which you are requesting an appraised value limitation as defined by Tax Code §313.021(2). Include a description of the land, describe each proposed improvement, and each proposed item of personal property for which you are seeking a limitation. Include each existing appraisal district account number and the legal description of the land, attach a detailed map showing the actual or proposed location of the land and proposed improvements and showing the actual or proposed boundaries and size of the reinvestment zone or enterprise zone in which the property will be located. Attach the order, resolution or ordinance establishing the zone, and the guidelines and criteria for creating the zone (if applicable). 2. A fully detailed description of the scope of the proposed project, including, at a minimum, the type and planned use of real and tangible personal property, the nature of the business, a timeline for property construction or installation, and any other relevant information. 3. A map of the reinvestment zone boundaries, certified to be accurate by either the governmental entity creating the zone, the local appraisal district, or a licensed surveyor. (B) Answer the following questions: 1. What is the first tax year of your proposed qualifying time period (as defined by Tax Code §313.021(4))? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. What is the amount of qualified investment, as defined by Tax Code §313.021(1), that will be made during the 2-year qualifying time period? . . . . 3. What is the amount of appraised value limitation for which you are applying?. _________________ $ _________________ $ _________________

NOTE: The minimum amount of qualified investment required to qualify for an appraised value limitation and the minimum amount of appraised value limitation vary depending on whether the school district is classified as rural, and the school district's property value. For assistance in determining these minimums, access the comptroller's Web site at http://www.window.state.tx.us/taxinfo/proptax/hb1200/values.html.

Page 1 of 7 pages

50-296 (Rev. 09-08/5) (page 2)

Step 3: 1. Do you propose to construct a new building or to erect or affix a new improvement after the date you submit this application? . . . . . . . . . . . . . . . . . . . . . . . . . . . Answer these questions about 2. Will all of the property for which you are requesting an appraised value limitation property and job be free of a tax abatement agreement entered into by a school district for the duration qualifications. of the qualifying time period, and for the duration of the appraised value limitation? . . . . . 3. Is the land on which you propose new construction or improvement currently located in an area designated as a reinvestment zone under Tax Code Chapter 311 or 312 or as an enterprise zone under Government Code Chapter 2303? . . . . . . . . . . . . . . . . . . . . . 3(a) If you answered "no" to the question above, are you seeking an agreement with a taxing unit that, prior to the first day of the qualifying time period, will result in a reinvestment zone with boundaries encompassing the land on which you propose new construction or improvement? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Date of anticipated agreement? _______________________________________ 4. Do you intend to make at least the minimum qualified investment required by Tax Code §313.023 (or 313.053 for rural school districts) for the relevant school district category? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. On the land and in connection with the new building or other improvement, do you plan to create at least 25 new jobs (at least 10 new jobs for rural school districts)? . . . . . . 6. Will at least 80 percent of all the new jobs created by the property owner be qualifying jobs as defined by Tax Code §313.021(3)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6(a) If you answered "yes" to the question above, attach documentation from the Texas Workforce Commission that the new qualifying jobs meet the requirements of Tax Code §313.021(3)(E) or 313.051(b). 7. Do you intend to request that the governing body waive the minimum jobs creation requirement, as provided under Tax Code §313.025(f-1)? . . . . . . . . . . . . . . . . . . . . . . . . . . 7(a) If you answered "yes" to the question above, attach evidence documenting that the job creation requirement (5) above exceeds the number of employees necessary for the operation, according to industry standards. 8. Except for new equipment described in Tax Code §151.318(q) or (q-1), is the proposed tangible personal property to be placed in service for the first time a) in or on the new building or other new improvement for which you are applying for an appraised value limitation, or b) if not in or on the new building or other new improvement for which you are applying for an appraised value limitation, is the personal property necessary and ancillary to the business conducted in the new building or other new improvement, and is the personal property on the same parcel of land as the building for which you are applying for an appraised value limitation? . . . . . ["First placed in service" means the first use of the property by the taxpayer.]

Yes

No

Yes

No

Yes

No

Yes

No

Yes Yes Yes

No No No

Yes

No

Yes

No

N/A

9. The property will be used as an integral part, or as a necessary auxiliary part, in one of the following activities as defined by Tax Code §313.024(b): · manufacturing; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . · researchanddevelopment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . · acleancoalproject; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . · anadvancedcleanenergyproject . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . · renewableenergyelectricgeneration;. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . · electricpowergenerationusingintegratedgasificationcombinedcycle technology;or. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . · nuclearelectricpowergeneration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. Are you an entity to which Tax Code, Chapter 171 applies? . . . . . . . . . . . . . . . . . . . . . . . .

Yes Yes Yes Yes Yes Yes Yes Yes

No No No No No No No No

Page 2 of 7 pages

50-296 (Rev. 09-08/5) (page 3)

Step 4: Answer these questions about investment, property value and employment.

1. Will the investment in real or personal property you propose to be counted toward the minimum qualified investment required by Tax Code §313.023, (or 313.053 for rural school districts) be first placed in service in this state during the applicable qualifying time period? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Does the investment in tangible personal property meet the requirements of Tax Code §313.021(1)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. If the proposed investment includes a building or a permanent, non-removable component of a building, does it house tangible personal property described above? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes

Yes No

No N/A

Yes

No Yes

N/A No

4. Will you own the property or lease the property under a capitalized lease? If leased, attach a copy of the lease agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Are you including 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 in determining the amount of your qualified investment? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Step 5: Economic Impact Please answer the following questions.

Yes

No

1. Applicant's 6-digit North American Industry Classification System (NAICS) code: . . . . . . . . _____________ 2. Is Schedule A completed for all years and attached? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Is Schedule B completed for all years and attached? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Is Schedule C completed for all years and attached? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Total number of new jobs that will have been created when fully operational: . . . . . . . . . . . 6. Total number of new jobs identified in (5) above that will have wages greater than 110 percent of the county average weekly wage for manufacturing jobs*: . . . . . . . . . . . . . . 7. Total number of new jobs identified in (5) above that will meet all the criteria for "qualifying jobs" as specified in Tax Code §313.021(3):. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. Describe each type of benefits to be offered to qualifying jobholders. Explain. ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ 8(a) Will the jobs created offer at least 80 percent of the premiums or other charges assessed for employee-only coverage under the group health benefit plan for qualifying jobholders? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes Yes Yes No No No

____________ ____________ ____________

Yes

No

9. Describe the ability of your company to locate or relocate in another state or another region of the state. ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ 10. Describe the current economic condition of the region of the state where the property is located. ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________
* Applicants to rural school districts that are not located in an SIA [see §313.051(a)(2)] must meet the regional wage standard described in 313.051(b).

Page 3 of 7 pages

50-296 (Rev. 09-08/5) (page 4)

Step 6: Applicant sign and date application.

By signing this application, you certify that this information is true and correct to the best of your knowledge and belief. Also by signing this application, you agree to respond promptly to all information requests made by the comptroller under Tax Code §313.032 and to send updated contact information to the comptroller throughout the agreement period. ______________________________________
Name of authorized company officer

_____________________________________
Title

______________________________________
Signature of authorized company officer

________________________
Date

On behalf of ___________________________________
Name of corporation/company

If you make a false statement on this application, you could be found guilty of a Class A misdemeanor or a state jail felony under Texas Penal Code §37.10.

Step 7: School district official sign and date application.

By signing below, I affirm that I have been delegated the authority by the school district governing body to act on its behalf with regard to this application for a limitation on appraised value. ______________________________________
Name of authorized school district official

_____________________________________
Title

______________________________________
Signature of authorized school district official

________________________
Date

On behalf of ___________________________________
Name of school district

Page 4 of 7 pages

50-296 Page 5 of 7

SCHEDULE A: INVESTMENT

PROPERTY INVESTMENT AMOUNTS ($)

(Estimated Investment in each year. Do not put cumulative totals.)

Year

Column A: Tangible Column B: Building or Column C: Sum of A Column D: Other Column E: Total Personal Property: the permanent and B--Qualifying investment that is not Investment (A+B+D) amount of new nonremovable Investment (during qualified investment but investment (original component of building the qualifying time investment affecting cost) placed in service (annual amount only) period) economic impact and total during this year value

pre-'year 1'

Qualifying time period

1

2

3

4

5

6

7

Tax Value Credit Period Limitation Period (with 50% cap on credit)

8

9

10

11

Continue Credit to Maintain Settle-Up Viable Period Presence

12

13

"Pre-Year 1" is the time period after the applicant has applied to the district and before January 1 of the first tax year of the qualifying time period.
Qualifying Time Period is the first two tax years beginning after the date of the approval of the application (the agreement).


Column A: This represents the total dollar amount of planned investment in tangible personal property the applicant considers qualified investment- as defined in Tax Code §313.021(1)(A)-(D). For the purposes of investment, please list amount invested each year, not cumulative totals. [For the years outside the qualifying time period, this number should simply represent the planned investment in tangible personal property]. Include estimates of investment for "replacement" property-property that is part of original agreement but scheduled for probable replacement during limitation period.

Column B:The total dollar amount of planned investment each year in buildings or nonremovable component of buildings that the applicant considers qualified investment under Tax Code §313.021(1)(E). For the years outside the qualifying time period, this number should simply represent the planned investment in new buildings or non-removable components of buildings.

Column D: Dollar value of other investment that may not be qualified investment but that may affect economic impact and total value. The most significant example for many projects would be land. Others may choose to include items such as professional services, etc. Note: Land can be listed as part of investment during the "pre-year 1" time period. It cannot be part of qualifying investment.

This schedule must be submitted with the original application, any agreement addendum, any reporting of replacement property, and any application for tax credit. When using this schedule for any purpose other than the original application, replace original estimates with actual appraisal district data for past years and update estimates for current and future years. If original estimates have not changed, enter those amounts for future years.

50-296 Page 6 of 7

SCHEDULE B: ESTIMATED MARKET AND TAXABLE VALUE
All figures here are to be cumulative

Qualified Property
E: Due to other exemptions F: Estimated total taxable value for I&S: (A+B+C)-(D+E)

Reductions from market value (exemptions, etc) Estimated Taxable Value

Year

Column A: Column B: Estimated Estimated Total Market Value Market Value of of Land new buildings or other new improvements

Column C: D: Due to pollution Estimated Total control property Market Value of (estimated or actual tangible personal as appropriate) property in the new building or "in or on the new improvement"

G: Estimated total taxable value for M&O: (Column F amount with the limitation value in years 3-10)

pre- year 1

Qualifying time period

1

2

3

4

5

6

Value Limitation Period

7

Tax Credit Period (with 50% cap on credit)

8

9

10

11

Credit Settle-Up Period

12

Continue to Maintain Viable Presence

13

This schedule must be submitted with the original application, any agreement addendum, any reporting of replacement property, and any application for tax credit. When using this schedule for any purpose other than the original application, replace original estimates with actual appraisal district data for past years and update estimates for current and future years. If original estimates have not changed, enter those amounts for future years.

50-296 Page 7 of 7

SCHEDULE C: EMPLOYMENT INFORMATION

Construction Number of Average wage Construction rates for FTE's or man- construction hours (specify) workers

Year

Permanent New Jobs Qualifying Jobs Existing Jobs Total number Average wage Total number of Total number Number of of permanent rate for all permanent new of permanent permanent full-time new permanent new qualifying jobs qualifying jobs existing jobs jobs created jobs for each with wages meeting all prior to by the year greater than criteria of Sec. application applicant 110% of the 313.021(3) county average weekly manufacturing wage

pre- year 1

Qualifying time period

1

2

3

4

5

6

Value Limitation Period

7

Tax Credit Period (with 50% cap on credit)

8

9

10

11

Credit Settle-Up Period

Continue to Maintain Viable Presence

12

13

This schedule must be submitted with the original application, any agreement addendum, any reporting of replacement property, and any application for tax credit. When using this schedule for any purpose other than the original application, replace original estimates with actual employment data for past years and update estimates for current and future years. If original estimates have not changed, enter those amounts for future years.