SRC-CTC, JEC C.S.H.B. 2601 77(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 2601
77R14441 GJH-DBy: Coleman (Gallegos)
Intergovernmental Relations
5/2/2001
Committee Report (Substituted)


DIGEST AND PURPOSE 

Current law provides exemptions from certain taxes to parks, markets,
fairgrounds, or other similar facilities which are owned by an incorporated
city or town and used in connection with a city's or town's convention and
entertainment activities. Although many arenas, stadiums, convention
centers, visitor centers, and concert halls are public facilities, these
facilities are not included in the tax exemptions. C.S.H.B. 2601 includes a
convention center, visitor center, sports facility with permanent seating,
concert hall, arena, or stadium that is owned by an incorporated city or
town among the local appraisal tax exemptions.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 25.07(b), Tax Code, to prohibit a leasehold or
other possessory interest in exempt property from being listed if the
interest is in a part of a convention center, visitor center, sports
facility with permanent seating, concert hall, arena, or stadium that is
owned by an incorporated city or town 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, except as provided by Section 11.11. 

SECTION 2.   Effective date: January 1, 2001.
  Makes application of this Act prospective.

SUMMARY OF COMMITTEE CHANGES

Amends Engrossed H.B. 2601 to amend proposed text relating to leaseholds or
possessory interests of incorporated cities or towns.