Texas House bill by Rep. Vasut allows Brazoria County to create reinvestment zones in Port Freeport district

Passed bill authored by State Rep. Cody Vasut aims to enable Brazoria County Commissioners Court to designate properties in the Port Freeport district as reinvestment zones and enter tax abatement agreements under the Tax Code, according to the Texas Legislature website.

In the House, 60 Democrats and 69 Republicans voted in favor of the bill, while two Democrats and 17 Republicans opposed it.

Meanwhile, in the Senate, 11 Democrats and 17 Republicans voted in favor, while three Republicans voted against it.

Cody Vasut introduced the bill in the Texas House on Thursday, Jan. 23, during the 89th regular legislative session.

Vasut graduated from Texas A&M University in 2008 with a BBA and again in 2012 from University of Houston Law Center with a JD.

Vasut, a Republican, was elected to the Texas State House in 2021 to represent the state’s 25th House district, replacing previous state representative Dennis Bonnen.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to the authority of the Brazoria County Commissioners Court to execute tax abatement agreements for property within the Port Freeport district’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends the Special District Local Laws Code to allow the Brazoria County Commissioners Court to designate properties within the Port Freeport district as reinvestment zones under Chapter 312 of the Tax Code. The commissioners court may execute tax abatement agreements with owners of leasehold interests in tax-exempt real property or property owned by the district located within these zones. The agreements may exempt all or part of the value of the leasehold interest, tangible personal property, or improvements on the real property. Other terms of these agreements are governed by Chapter 312 of the Tax Code. The bill takes effect immediately if it secures a two-thirds majority in both legislative houses; otherwise, it becomes effective on Sept. 1, 2025.

The bill was co-authored by Rep. Jeffrey Barry (Republican – District 29).

The bill received its final legislative approval on Monday, May 19, and was signed into law by Gov. Greg Abbott on Thursday, May 29.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.