HBA-JRA H.B. 2001 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2001
By: Green
Ways & Means
4/19/1999
Introduced



BACKGROUND AND PURPOSE 

Current law exempts property owned by this state or a political subdivision
of this state from taxation if the property is used for public purposes
unless the land is owned by the Permanent University Fund or is
agricultural or grazing land owned by the county for the benefit of public
schools.  Therefore, property owned by a political subdivision, such as a
municipality, that is only partially in a particular county may qualify for
exemption and be removed from the tax rolls of a county, but benefit only
the political subdivision.  H.B. 2001 provides that property owned by a
municipality that is located in a county in which less than 20 percent of
the territory of the municipality is located is taxable if a taxing unit
elects to tax the property. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 11.11, Tax Code, by amending Subsection (a) and
adding Subsection (i), as follows: 

(a)  Provides that Subsection (i) provides an exception to this subsection,
which exempts property owned by this state or a political subdivision of
this state from taxation if the property is used for public purposes. 

(i)  Provides that real property owned by a municipality and otherwise
exempt under Subsection (a) is taxable by a taxing unit that elects to tax
the property if the property is located in a county in which less than 20
percent of the territory of the municipality is located.  Provides that, to
tax the property in a tax year, the governing body of a taxing unit must
take official action electing to tax the property and provide written
notice of its action to the chief appraiser of the appropriate appraisal
district by January 1 of that tax year. Provides that an election to tax
the municipal property applies to all real property owned by the
municipality in that county and continues in effect for each subsequent tax
year until the election to tax the property is revoked by the governing
body of the taxing unit. 

SECTION 2.  Effective date:  January 1, 2000, but only if the
constitutional amendment to authorize the ad valorem taxation of real
property that is owned by a city or town and that is located in a county in
which less than 20 percent of the territory of the city or town is located
is approved by the voters. 

SECTION 3.  Emergency clause.