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.