H.B. No. 2027 amends the Special District Local Laws Code to enhance the authority of the Brazoria County Commissioners Court regarding tax abatement agreements for properties within the Port Freeport district. The bill allows the district to request the commissioners court to designate certain properties as reinvestment zones, notwithstanding previous subchapters of the Tax Code. The commissioners court can designate these properties if they meet the criteria outlined in Section 312.202 of the Tax Code, similar to how municipalities create such zones.

Additionally, the bill introduces provisions that enable the commissioners court to execute tax abatement agreements with owners of leasehold interests in tax-exempt real property or property owned by the district within the designated reinvestment zones. These agreements can exempt all or a portion of the value of the leasehold interest, tangible personal property, or improvements located on the real property. The terms of these agreements will be governed by Chapter 312 of the Tax Code. The act will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

Statutes affected:
Introduced: Special District Local Laws Code 5002.203 (Special District Local Laws Code 5002)
House Committee Report: Special District Local Laws Code 5002.203 (Special District Local Laws Code 5002)
Engrossed: Special District Local Laws Code 5002.203 (Special District Local Laws Code 5002)
Senate Committee Report: Special District Local Laws Code 5002.203 (Special District Local Laws Code 5002)
Enrolled: Special District Local Laws Code 5002.203 (Special District Local Laws Code 5002)