Bill Text: TX SB1771 | 2019-2020 | 86th Legislature | Comm Sub
Bill Title: Relating to the ad valorem taxation of a leasehold or other possessory interest in certain property owned by a municipality.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-05-15 - Not again placed on intent calendar [SB1771 Detail]
Download: Texas-2019-SB1771-Comm_Sub.html
By: Bettencourt | S.B. No. 1771 | |
(In the Senate - Filed March 6, 2019; March 14, 2019, read | ||
first time and referred to Committee on Property Tax; May 6, 2019, | ||
reported adversely, with favorable Committee Substitute by the | ||
following vote: Yeas 3, Nays 2; May 6, 2019, sent to printer.) | ||
COMMITTEE SUBSTITUTE FOR S.B. No. 1771 | By: Bettencourt |
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relating to the ad valorem taxation of a leasehold or other | ||
possessory interest in certain property owned by a municipality. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 25.07, Tax Code, is amended by amending | ||
Subsection (b) and adding Subsection (d) to read as follows: | ||
(b) Except as provided by Sections 11.11(b) and (c) and by | ||
Subsection (d) of this section, a leasehold or other possessory | ||
interest in exempt property may not be listed if: | ||
(1) the property is permanent university fund land; | ||
(2) the property is county public school fund | ||
agricultural land; | ||
(3) the property is a part of a public transportation | ||
facility owned by a municipality or county and: | ||
(A) is an airport passenger terminal building or | ||
a building used primarily for maintenance of aircraft or other | ||
aircraft services, for aircraft equipment storage, or for air | ||
cargo; | ||
(B) is an airport fueling system facility; | ||
(C) is in a foreign-trade zone: | ||
(i) that has been granted to a joint airport | ||
board under Subchapter C, Chapter 681, Business & Commerce Code; | ||
(ii) the area of which in the portion of the | ||
zone located in the airport operated by the joint airport board does | ||
not exceed 2,500 acres; and | ||
(iii) that is established and operating | ||
pursuant to federal law; or | ||
(D)(i) is in a foreign trade zone established | ||
pursuant to federal law after June 1, 1991, that operates pursuant | ||
to federal law; | ||
(ii) is contiguous to or has access via a | ||
taxiway to an airport located in two counties, one of which has a | ||
population of 500,000 or more according to the federal decennial | ||
census most recently preceding the establishment of the foreign | ||
trade zone; and | ||
(iii) is owned, directly or through a | ||
corporation organized under the Development Corporation Act | ||
(Subtitle C1, Title 12, Local Government Code), by the same | ||
municipality that owns the airport; | ||
(4) the interest is in a part of: | ||
(A) a park, market, fairground, or similar public | ||
facility that is owned by a municipality; or | ||
(B) a convention center, visitor center, sports | ||
facility with permanent seating, concert hall, arena, or stadium | ||
that is owned by a municipality as such leasehold or possessory | ||
interest serves a governmental, municipal, or public purpose or | ||
function when the facility is open to the public, regardless of | ||
whether a fee is charged for admission; | ||
(5) the interest involves only the right to use the | ||
property for grazing or other agricultural purposes; | ||
(6) the property is: | ||
(A) owned by a municipality, a public port, or a | ||
navigation district created or operating under Section 59, Article | ||
XVI, Texas Constitution, or under a statute enacted under Section | ||
59, Article XVI, Texas Constitution; and | ||
(B) used as an aid or facility incidental to or | ||
useful in the operation or development of a port or waterway or in | ||
aid of navigation-related commerce; or | ||
(7) the property is part of a rail facility owned by a | ||
rural rail transportation district operating under Chapter 172, | ||
Transportation Code. | ||
(d) Subsection (b)(4)(B) does not prohibit the listing of a | ||
leasehold or other possessory interest in real property for | ||
purposes of taxation of the possessory interest by a taxing unit | ||
other than the municipality that owns the property unless: | ||
(1) the governing body of the taxing unit approves the | ||
exemption of the possessory interest in the manner provided by law | ||
for official action by the governing body; or | ||
(2) the financing by the municipality of the | ||
construction of the facility on the property was authorized by the | ||
voters of the municipality at an election held by the municipality. | ||
SECTION 2. This Act applies only to the taxation of property | ||
for a tax year beginning on or after the effective date of this Act. | ||
SECTION 3. The change in law made by this Act applies only | ||
to the taxation of a leasehold or other possessory interest in real | ||
property that is granted on or after the effective date of this Act. | ||
The taxation of a leasehold or other possessory interest in real | ||
property that is granted before the effective date of this Act, | ||
including a leasehold or other possessory interest that is granted | ||
before that date and is renewed on or after that date, is governed | ||
by the law as it existed immediately before the effective date of | ||
this Act, and that law is continued in effect for that purpose. | ||
SECTION 4. This Act takes effect September 1, 2019. | ||
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