77R10457 GJH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the ad valorem taxation of certain possessory interests
 1-3     in certain municipal property open to the public.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 25.07(b), Tax Code, is amended to read as
 1-6     follows:
 1-7           (b)  Except as provided by Subsections (b) and (c) of Section
 1-8     11.11 of this code, a leasehold or other possessory interest in
 1-9     exempt property may not be listed if:
1-10                 (1)  the property is permanent university fund land;
1-11                 (2)  the property is county public school fund
1-12     agricultural land;
1-13                 (3)  the property is a part of a public transportation
1-14     facility owned by an incorporated city or town and:
1-15                       (A)  is an airport passenger terminal building or
1-16     a building used primarily for maintenance of aircraft or other
1-17     aircraft services, for aircraft equipment storage, or for air
1-18     cargo;
1-19                       (B)  is an airport fueling system facility;
1-20                       (C)  is in a foreign-trade zone:
1-21                             (i)  that has been granted to a joint
1-22     airport board under Chapter 129, Acts of the 65th Legislature,
1-23     Regular Session, 1977 (Article 1446.8, Vernon's Texas Civil
1-24     Statutes);
1-25                             (ii)  the area of which in the portion of
1-26     the zone located in the airport operated by the joint airport board
1-27     does not exceed 2,500 acres; and
 2-1                             (iii)  that is established and operating
 2-2     pursuant to federal law; or
 2-3                       (D)(i)  is in a foreign trade zone established
 2-4     pursuant to federal law after June 1, 1991, which operates pursuant
 2-5     to federal law;
 2-6                             (ii)  is contiguous to or has access via a
 2-7     taxiway to an airport located in two counties, one of which has a
 2-8     population of 500,000 or more according to the federal decennial
 2-9     census most recently preceding the establishment of the foreign
2-10     trade zone; and
2-11                             (iii)  is owned, directly or through a
2-12     corporation organized under the Development Corporation Act of 1979
2-13     (Article 5190.6, Vernon's Texas Civil Statutes), by the same
2-14     incorporated city or town which owns the airport;
2-15                 (4)  the interest is in a part of:
2-16                       (A)  a park, market, fairground, or similar
2-17     public facility that is owned by an incorporated city or town; or
2-18                       (B)  a convention center, visitor center, sports
2-19     facility with permanent seating, concert hall, arena, or stadium
2-20     that is owned by an incorporated city or town if the leasehold or
2-21     possessory interest serves a governmental, municipal, or public
2-22     purpose or function when the facility is open to the public,
2-23     regardless of whether a fee is charged for admission;
2-24                 (5)  the interest involves only the right to use the
2-25     property for grazing or other agricultural purposes;
2-26                 (6)  the property is owned by the Texas National
2-27     Research Laboratory Commission or by a corporation formed by the
 3-1     Texas National Research Laboratory Commission under Section
 3-2     465.008(g), Government Code, and is used or is useful in connection
 3-3     with an eligible undertaking as defined by  Section 465.021,
 3-4     Government Code; or
 3-5                 (7)  the property is:
 3-6                       (A)  owned by a municipality, a public port, or a
 3-7     navigation district created or operating under  Section 59, Article
 3-8     XVI, Texas Constitution, or under a statute enacted under  Section
 3-9     59, Article XVI, Texas Constitution; and
3-10                       (B)  used as an aid or facility incidental to or
3-11     useful in the operation or development of a port or waterway or in
3-12     aid of navigation-related commerce.
3-13           SECTION 2. This Act takes effect January 1, 2001, and applies
3-14     only to tax years that begin on or after that date.