economy Economic Development

Tax Increment Financing Act Reporting Forms

New Tax Increment Financing Zone

A municipality or county that designates a tax increment reinvestment zone is required in Texas Tax Code, Section 311.019 to deliver the following information to the Comptroller's office before April 1 of the year following the year in which the zone is designated:

• Form 50-807, New Tax Increment Reinvestment Zone, and
• a copy of each project plan and reinvestment zone financing plan adopted (including any later amendments and modifications).

Annual Reporting Requirement for Tax Increment Financing Zones

The Tax Increment Financing Act requires all cities or counties that designate a tax increment reinvestment zone to file an annual report with the Comptroller's office and the chief executive officer of each taxing unit that levies property taxes on real property in a reinvestment zone. The report must include:

• the amount and source of revenue in the tax increment fund established for the zone;
• the amount and purpose of expenditures from the fund;
• the amount of principal and interest due on outstanding bonded indebtedness;
• the tax increment base and current captured appraised value retained by the zone; and
• the captured appraised value shared by the municipality or county and other taxing units, the total amount of tax increments received, and any additional information necessary to demonstrate compliance with the tax increment financing plan adopted by the governing body of the municipality or county.

The Comptroller's office also may ask for any other information required to determine the use of tax increment reinvestment zones and economic development in the state.

The following form is to be submitted on or before the 150th day following the end of the city’s fiscal year. The governing body must produce an annual report on the status of the zone and send a copy to the Comptroller. The annual report must be accompanied by Comptroller form 50-806.

From a best practice perspective, it is highly recommended that cities submit all documentation immediately rather than waiting the 150 days. This minimizes lost paperwork and helps the Comptroller office connect each zone’s creation filings to the annual reports.

• Form 50-806, Annual Report by Municipality or County

The Comptroller's office will use this information to compile the tax increment reinvestment zone registry biennial report for delivery to the legislature and governor.

Need Help?

For additional information, contact the Data Analysis and Transparency Division via email or at 844-519-5672.

Disclaimer

This information should not be construed as, and is not a substitute for, legal advice.

Property owners and school districts are urged to consult the Attorney General's Economic Development Handbook and their own legal counsel for any questions or interpretations of economic development laws.