BILL ANALYSIS


                                                    C.S.S.B. 1564
                                                        By: Lucio
                                                          Finance
                                                         05-10-95
                                   Committee Report (Substituted)
BACKGROUND

Port authorities and navigation districts, while not deemed
taxable, are not specifically included among the list of entities
exempted from taxation under Section 11.11 of the Tax Code, 
Because of this omission, confusion has existed as to whether port
authorities and navigation districts are considered taxable.

PURPOSE

As proposed, C.S.S.B. 1564 provides that property owned by a
navigation district or port authority is used for public purposes
and exempt from taxation if it meets certain requirements.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 11.11, Tax Code, by adding Subsection
(h), to provide that property owned by a navigation district or
port authority and property owned by a municipality that operates
a public port is used for public purposes and exempt from taxation
if it is leased to a person or entity, however organized, for any
of the purposes stated in Section 60.101, 61.151, 62.107, or
63.153, Water Code; or held by the navigation district or port
authority or municipality for future expansion of its facilities or
for leasing for any of the purposes described in Subdivision (1).

SECTION 2. Emergency clause.
           Effective date:  upon passage.