Texas HB4270 modifies tax abatement agreements for residence homesteads in reinvestment zones.

HB4270 amends the Texas Tax Code to allow certain taxing units to enter into tax abatement agreements for residence homesteads in reinvestment zones. These agreements can last up to 10 years and require the property owner to spend at least $500 on improvements or repairs in the first year. The agreements must allow the taxing unit to inspect the property and recapture lost tax revenue if the owner fails to comply. The bill also specifies that the expiration of a reinvestment zone designation does not affect existing tax abatement agreements. The changes take effect September 1, 2025.

Texas HB4270 modifies tax abatement agreements for residence homesteads in reinvestment zones.

HB4270 amends the Texas Tax Code to allow certain taxing units to enter into tax abatement agreements for residence homesteads in reinvestment zones. These agreements can last up to 10 years and require the property owner to spend at least $500 on improvements or repairs in the first year. The agreements must allow the taxing unit to inspect the property and recapture lost tax revenue if the owner fails to comply. The bill also specifies that the expiration of a reinvestment zone designation does not affect existing tax abatement agreements. The changes take effect September 1, 2025.