SRC-SEW C.S.S.B. 1711 77(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1711
77R9798 GJH-FBy: Van de Putte
Intergovernmental Relations
4/18/2001
Committee Report (Substituted)


DIGEST AND PURPOSE 

Under current law, taxing units are able to offer tax abatement incentives
to owners of certain types of real property.  However, they are unable to
offer the same tax abatement incentives to owners of leasehold interests.
Tax abatement can be a useful tool in stimulating economic investment and
development.  C.S.S.B. 1711 allows taxing units to enter into tax abatement
agreements with the owners of leasehold interests. 

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 Chapter 312A, Tax Code, by adding Section 312.007, as
follows: 

Sec.  312.007.  TAX ABATEMENT APPLICABLE TO LEASEHOLD INTEREST. Provides
that, for purposes of tax abatement under this chapter, the owner of a
leasehold interest in real property is considered to be the owner of real
property, and a reference to the owner's real property in a provision of
this chapter applicable to a tax abatement agreement applies to the leased
premises subject to the leasehold interest.  Authorizes a tax abatement
agreement entered into by a taxing unit under this chapter with the owner
of a leasehold interest to apply to the taxable value, if any, of the
leasehold interest in the same manner as a tax abatement agreement with the
owner of real property would apply to the taxable value of the real
property; and tangible personal property located on the leased premises in
the same manner as a tax abatement agreement with the owner of the real
property would apply to the tangible personal property located on the real
property.   

SECTION 2.  Effective date: upon passage or September 1, 2001.

SUMMARY OF COMMITTEE CHANGES

Amends As Filed S.B. 1711 as follows:

Omits original SECTIONS 1 - 5.  

Adds new SECTION 1.  

SECTION 2.  Redesignates some text from original SECTION 5.  Provides that
the effective date of this Act is upon passage or September 1, 2001.