HBA-KDB H.B. 2965 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2965
By: Longoria
Ways & Means
3/26/2001
Introduced



BACKGROUND AND PURPOSE 

According to a recent Attorney General opinion (JC-0300), tax abatements
can only be granted to an owner of real property that is located in a
reinvestment zone.  The lessee is thus subject to the state property tax.
This may cause a problem for communities promoting economic development in
reinvestment zones that may seek to use tax abatements to encourage
individuals or corporations to lease property in such zones.  House Bill
2965 authorizes the governing body of a taxing unit to grant tax abatements
to a lessee of real property located in a reinvestment zone. 

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. 

ANALYSIS

House Bill 2965 amends the Tax Code to authorize the governing body of a
taxing unit to grant tax abatements to a lessee, in addition to an owner,
of real property located in a reinvestment zone.   

EFFECTIVE DATE

September 1, 2001.