By Green                                               H.B. No. 573
         77R1670 GJH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the ad valorem taxation of certain property owned by a
 1-3     municipality.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 11.11, Tax Code, is amended by amending
 1-6     Subsection (a) and adding Subsection (i) to read as follows:
 1-7           (a)  Except as provided by Subsections (b), [and] (c), and
 1-8     (i) [of this section], property owned by this state or a political
 1-9     subdivision of this state is exempt from taxation if the property
1-10     is used for public purposes.
1-11           (i)  Real property owned by a municipality and otherwise
1-12     exempt under Subsection (a) is taxable by a taxing unit that elects
1-13     to tax the property if the property is located in a county in which
1-14     less than 20 percent of the territory of the municipality is
1-15     located.  To tax the property in a tax year, the governing body of
1-16     the taxing unit, not later than January 1 of that tax year, must
1-17     take official action electing to tax the property and provide
1-18     written notice of its action to the chief appraiser of the
1-19     appraisal district that appraises property for the taxing unit in
1-20     the territory in which the municipal property is located.  An
1-21     election to tax the municipal property applies to all real property
1-22     owned by the municipality in that county and continues in effect
1-23     for each subsequent tax year until the election to tax the property
1-24     is revoked by the governing body of the taxing unit.
 2-1           SECTION 2.  This Act takes effect January 1, 2002, but only
 2-2     if the constitutional amendment to authorize the ad valorem
 2-3     taxation of real property that is owned by a city or town and that
 2-4     is located in a county in which less than 20 percent of the
 2-5     territory of the city or town is located is approved by the voters.
 2-6     If that constitutional amendment is not approved by the voters,
 2-7     this Act has no effect.