SWB C.S.S.B. 1739 75(R)    BILL ANALYSIS


WAYS & MEANS
C.S.S.B. 1739
By: Armbrister (Oliveira)
5-5-97
Committee Report (Substituted)



BACKGROUND 

Section 11.11, Tax Code (Public Property), exempts from ad valorem
taxation property owned by a governmental entity and used for public
purposes.  Section 25.07, Tax Code (Leasehold and Other Possessory
Interests in Exempt Property), provides that if a private person leases
exempt property from a governmental entity, the property may be listed on
the appraisal roll in the name of the lessee if the lease is for a term of
at least one year, unless the property continues to be used for a specific
public purpose.  These purposes include transportation-related facilities,
such as public transportation facilities and airports.  Currently,
property that is used in a public port is not treated in the same manner
as public airports and transportation-related facilities. 

PURPOSE

The bill clarifies that exempt property leased from a governmental entity
and used for operating and maintaining a public port should not be listed
on the appraisal roll in the name of the holder of the leasehold interest.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.Amends Section 25.07(b), Tax Code, by adding Subparagraph (7) to
exclude from the listing requirement exempt property that 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; 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. 

SECTION 2.Effective date: January 1, 1998.

SECTION 3. Emergency Clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 1739 differs from S.B. 1739 in two ways.  C.S.S.B. 1739 makes
non-substantive changes by dividing Subparagraph (7) into two parts, (A)
and (B). 

C.S.S.B. 1739 adds an effective date of January 1, 1998.