Common use of Reduction in Rollback Tax Rate Clause in Contracts

Reduction in Rollback Tax Rate. If during any year of the period of Abatement any portion of the abated value for Eligible Property is added to the current total value of the Governmental Unit but is not treated as “new property value” (as defined in Section 26.012(17) of the Texas Tax Code) for the purpose of establishing the “effective maintenance and operations rate” (as defined in Section 26.012(17) of the Texas Tax Code) in calculating the “rollback tax rate” in accord with Section 26.04(c)(2) of the Texas Tax Code, and if the Governmental Unit’s budget calculations indicate that a tax rate in excess of the “rollback tax rate” is required to fund the operations of the Governmental Unit for the succeeding year, then the Governmental Unit shall recapture from the Owner a tax in an amount equal to the lesser of the following: (1) The amount of the taxes abated for that year by the Governmental Unit with respect to the Property. (2) The amount obtained by (i) subtracting the rollback tax rate computed without the abated property value being treated as new property value from the rollback tax rate computed with the abated property value being treated as new property value and (ii) multiplying the difference in rate by the total Appraised Value of the Governmental Unit. If the Governmental Unit has granted an abatement of taxes to more than one taxpayer, then the amount of the recapture calculated in accord with subparagraph (2) above shall be prorated on the basis of the value of the abatement with respect to each taxpayer. This event shall not constitute a “default” under this Agreement, and the sixty (60) day Cure Period provided above shall not apply. Such recaptured taxes must be paid within thirty (30) days after notice thereof has been given to the Owner. Penalty and interest shall not begin to accrue upon such sum until the first day of the month following such thirty (30) day notice, at which time penalty and interest shall accrue in accord with the laws of the State of Texas.

Reduction in Rollback Tax Rate. If during any year of the period of Abatement any portion of the abated value for Eligible Property is added to the current total value of the Governmental Unit but is not treated as “new property value” (as defined in Section 26.012(1726.012 (17) of the Texas Tax Code) for the purpose of establishing the “effective maintenance and operations rate” (as defined in Section 26.012(17) of the Texas Tax Code) in calculating the “rollback tax rate” in accord with Section 26.04(c)(226.04 (c) (2) of the Texas Tax Code, Code and if the Governmental Unit’s budget calculations indicate that a tax rate in excess of the “rollback tax rate” is required to fund the operations of the Governmental Unit for the succeeding year, then the Governmental Unit shall recapture from the Owner a tax in an amount equal to the lesser of the following: (1) The amount of the taxes abated for that year by the Governmental Unit with respect to the Property. (2) The amount obtained by (i) subtracting the rollback tax rate computed without the abated property value being treated as new property value from the rollback tax rate computed with the abated property value being treated as new property value and (ii) multiplying the difference in rate by the total Appraised Value assessed value of the Governmental Unit. If the Governmental Unit has granted an abatement of taxes to more than one taxpayer, then the amount of the recapture calculated in accord with subparagraph (2) above shall be prorated on the basis of the value of the abatement with respect to each taxpayer. This event shall not constitute a “default” under this Agreement, and the sixty (60) day Cure Period provided above shall not apply. Such recaptured taxes must be paid within thirty (30) days after notice thereof has been given to the Owner. Penalty and interest shall not begin to accrue upon such sum until the first day of the month following such thirty (30) day notice, at which time penalty and interest shall accrue in accord with the laws of the State of Texas.

Reduction in Rollback Tax Rate. If during any year of the period of Abatement any portion of the abated value for Eligible Property is added to the current total value of the Governmental Unit but is not treated as “new property value” (as defined in Section 26.012(1726.012 (17) of the Texas Tax Code) for the purpose of establishing the “effective maintenance and operations rate” (as defined in Section 26.012(17) of the Texas Tax Code) in calculating the “rollback tax rate” in accord with Section 26.04(c)(226.04 (c) (2) of the Texas Tax Code, Code and if the Governmental Unit’s budget calculations indicate that a tax rate in excess of the “rollback tax rate” is required to fund the operations of the Governmental Unit for the succeeding year, then the Governmental Unit shall recapture from the Owner a tax in an amount equal to the lesser of the following: (1) The amount of the taxes abated for that year by the Governmental Unit with respect to the Property. (2) The amount obtained by (i) subtracting the rollback tax rate computed without the abated property value being treated as new property value from the rollback tax rate computed with the abated property value being treated as new property value and (ii) multiplying the difference in rate by the total Appraised Value of the Governmental Unit. If the Governmental Unit has granted an abatement of taxes to more than one taxpayer, then the amount of the recapture calculated in accord with subparagraph (2) above shall be prorated on the basis of the value of the abatement with respect to each taxpayer. This event shall not constitute a “default” under this Agreement, and the sixty (60) day Cure Period provided above shall not apply. Such recaptured taxes must be paid within thirty (30) days after notice thereof has been given to the Owner. Penalty and interest shall not begin to accrue upon such sum until the first day of the month following such thirty (30) day notice, at which time penalty and interest shall accrue in accord with the laws of the State of Texas.

Reduction in Rollback Tax Rate. If during any year of the period of Abatement any portion of the abated value for Eligible Property is added to the current total value of the Governmental Unit but is not treated as “new property value” (as defined in Section 26.012(17) of the Texas Tax Code) for the purpose of establishing the “effective maintenance and operations rate” (as defined in Section 26.012(17) of the Texas Tax Code) in calculating the “rollback tax rate” in accord with Section 26.04(c)(2) of the Texas Tax Code, and if the Governmental Unit’s budget calculations indicate that a tax rate in excess of the “rollback tax rate” is required to fund the operations of the Governmental Unit for the succeeding year, then the Governmental Unit shall recapture from the Owner a tax in an amount equal to the lesser of the following: (1) The amount of the taxes abated for that year by the Governmental Unit with respect to the Property. (2) The amount obtained by (i) subtracting the rollback tax rate computed without the abated property value being treated as new property value from the rollback tax rate computed with the abated property value being treated as new property value and (ii) multiplying the difference in rate by the total Appraised Value of the Governmental Unit. If the Governmental Unit has granted an abatement of taxes to more than one taxpayer, then the amount of the recapture calculated in accord with subparagraph (2) above shall be prorated on the basis of the value of the abatement with respect to each taxpayer. This event shall not constitute a “default” under this Agreement, and the sixty (60) day Cure Period provided above shall not apply. Such recaptured taxes must be paid within thirty (30) days after notice thereof has been given to the Owner. Penalty and interest shall not begin to accrue upon such sum until the first day of the month following such thirty (30) day notice, at which time penalty and interest shall accrue in accord with the laws of the State of Texas.