Texas Attorney General Opinion: GA-0725 Page: 1 of 5
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ATTORNEY GENERAL OF TEXAS
GREG ABBOTT
July 9, 2009
The Honorable David P. Weeks Opinion No. GA-0725
Walker County Criminal District Attorney
1036 11 Ith Street Re: Whether certain reservations and assignments in
Huntsville, Texas 77340 deeds executed by a member of a city council operate
to exclude particular property from tax increment
financing under Tax Code section 312.204(d)
(RQ-0777-GA)
Dear Mr. Weeks:
You inform us that in 2004, the City of Huntsville (the "City") created a tax increment
financing reinvestment zone pursuant to the Tax Increment Financing Act, chapter 311 of the Tax
Code.' You relate that an individual who was then and who is now a city council member owned
approximately a seven percent undivided interest in certain real property located in the zone. See
Brief at 1, 4. In 2008, you tell us, the council member "deeded" his interest to his children, but
"reserved the net proceeds from any future sale of the property and transferred and assigned those
proceeds to the City ... to be used for the renovation, expansion and/or construction of the Public
Library in memory" of a relative of the council member. Id. at 1. You first ask whether the
reservation "operate[s] to exclude the property from tax increment financing under Tax Code section
312.204(d)," a provision in the Property Redevelopment and Tax Abatement Act. Id. at 2. This
office does not construe particular contracts or contract provisions. See, e.g., Tex. Att'y Gen. Op.
No. GA-0302 (2005) at 2. However, your question can be answered by addressing the legal issue
of whether a valid reservation of sale proceeds of real property conveyed retains to the grantor
ownership of the property under Tax Code section 312.204(d). Thus, we answer your question
generally without expressing an opinion with respect to the particular deeds or transactions about
which you ask. See id.
The Tax Increment Financing Act, chapter 311 of the Tax Code, authorizes an eligible city
to establish a qualifying area as a reinvestment zone and finance authorized projects in the zone to
promote its development or redevelopment. See TEX. TAX CODE ANN. 311.003(a), .011 (Vernon
2008). The Property Redevelopment and Tax Abatement Act, chapter 312 of the Tax Code,
authorizes an eligible city to enter into a tax abatement agreement with an owner of taxable real
property, or lessee of tax-exempt real property, in a reinvestment zone to exempt from taxation a'See Brief attached to Request Letter at 1 (available at http://www.texasattomeygeneral.gov).
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Texas. Attorney-General's Office. Texas Attorney General Opinion: GA-0725, text, July 9, 2009; (https://texashistory.unt.edu/ark:/67531/metapth275621/m1/1/: accessed April 19, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.